Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
STAFF RECOMMENDATION (Motion Ready):
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Approve a five-year airport ground lease of 10.2 acres with the District Board of Trustees of the College of Central Florida f/k/a the District Board of Trustees of Central Florida Community College with a first-year revenue amount of $31,200
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The College of Central Florida (CF) has been leasing 10.2 acres of airport property since 2012 for a variety of uses including a truck driving school and currently, law enforcement training. The only improvements on the premises are an office building (mobile trailer) and a large concrete pad that encompasses most of the site. The pad was constructed by the City of Ocala (City) as a part of the Airport Rescue and Fire Fighting training campus in the mid-1990s.
The lease term is for five years, with no extensions. Should the City find a more appropriate use for the site, the City can terminate the lease upon providing 18 months advance written notice.
An appraisal of the premises was conducted in July 2022. The per acre value of the land was determined to be $80,000, translating to a lease value of $6,400 per acre, per year. The annual lease amount for 10.2 would be $65,280 in a typical situation. Due to the “temporary” use of the site, the annual lease amount was negotiated to $31,200 per year (increasing 3% annually). The current annual payment by CF is $15,443.
FINDINGS AND CONCLUSIONS:
• CF is an existing tenant in good standing and has been since 2012.
• The proposed triple net lease amount of $31,200 is an increase from the $15,443 that CF currently pays annually.
• The City can terminate the lease without cause by providing the tenant 18 months’ written notice.
• The use is compatible with airport operations, the airport layout plan, and the airport master plan.
• The Airport Advisory Board recommended approval of the lease at its August 16, 2022 meeting.
FISCAL IMPACT:
First-year revenue of $31,200 will be applied to account 451-362-000-000-02-31211.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
The Ground Lease will be reviewed and approved for form and legality by the City Attorney, Robert Batsel, Jr.
ALTERNATIVE:
Table, deny