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 three-year airport hangar lease renewal with the Florida Department of Agriculture & Consumer Services with a receivable amount of $155,336
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Florida Department of Agriculture and Consumer Services, Division of Forestry (Forestry) has been a tenant at the Ocala International Airport since approximately 2002. Forestry operates helicopters in a forest fire mitigation role and often bases multiple aircraft from its Ocala hub. The current lease (Contract No.: AIR/210446) expires on March 31, 2023. Forestry has requested a three-year extension to the existing lease with a commencement date of April 1, 2023 and an expiration date of March 31, 2026.
The proposed gross lease includes a blended rate for hangar and office space over the next rental period of 2023-2026 based on a formula of dedicated office space, common office space, and dedicated hangar space (see attached jpg). The rates are consistent with what Sheltair Aviation (Airport Fixed Based Operator) is charging for their older office and hangar location at the Airport.
FINDINGS AND CONCLUSIONS:
The lease is for office and hangar space at 750 SW 60th Avenue, otherwise known as Hangar 19.
Prior to the construction of the new terminal building, Airport Administration, Forestry, and the Florida Department of Fish and Wildlife (FWC) shared office and hangar space within Hangar 19.
With the vacancy created by the relocation of Airport Administration to the new terminal, both Forestry and FWC were required to lease the newly vacant space. The lease rate also increased significantly to cover the increase in utility, insurance, and other costs (gross lease). Forestry is a tenant in excellent standing. This three-year lease agreement represents a significant increase from the lease term.
The Ocala Airport Forestry office employs two pilots, and two mechanics.
FISCAL IMPACT:
Lease year 1: $50,256.00
Lease year 2: $51,763.68
Lease year 3: $53,316.59
The 2018-2023 blended rate is $5.65 per sq. ft. The proposed 2023-2026 blended rate equates to $8.64 per sq. ft. Revenue will be applied to account 451-362-000-000-02-31191.
PROCUREMENT REVIEW:
This lease agreement has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This lease will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
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• Deny