Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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Three-year renewal of the lease with Avis/Budget Rental Car, LLC, at the Ocala International Airport for annual rent and fees of approximately $310,368
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Economic Hub
PROOF OF PUBLICATION:
NA
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BACKGROUND:
Avis Budget Car Rental, LLC ("Avis") an existing tenant at Ocala International Airport (the “Airport”), has operated out of the original terminal building since 2002. This most recent amendment exercises the option for a three-year renewal term through January 31, 2029, for the use of 365 square feet of office space in the General Aviation Terminal, use of the car wash facility, and 45 (out of 103) vehicle parking spots.
FINDINGS AND CONCLUSIONS:
On October 3, 2019, the City issued Invitation to Negotiate No. AIR/190688 for the provision of airport car rental concession services. The Hertz Corporation, Enterprise Leasing Company of Florida, LLC, and Avis submitted proposals on November 7, 2019. The City entered into contracts with all three companies. Hertz departed the Airport in 2021.
• AVIS has been a tenant of the Airport since 2003 and is in good standing.
• The lease also accommodates Avis’s other brand, “Budget”.
• The proposed lease is a gross lease, with utilities, janitorial, and maintenance included in the rent.
• Of the two rental car companies operating at the Airport, Avis conducts the second most business with calendar year 2025 gross sales of $2,966,818.
FISCAL IMPACT:
The Airport collects a fee of 10 percent of its reported gross sales, less insurance-related rental business (insurance agency paid rentals), capped at 35 percent. As a reference, the 2025 10 percent annual concession revenue paid to the Airport was reported as $296,681 in account 451-344-000-000-02-31601.
A December 2025 appraisal conducted by Slack, Johnston & Magenheimer, Inc. determined the gross rental rate of the rental car office space to be $37.50 per square foot. Avis is leasing a total of 365 sq. ft. in the terminal and will be paying $13,687 annually in account 451-362-000-000-02-31191. This is in addition to the concession fee.
The revenues of the two rental car companies combined equate to nearly thirty percent of the total airport revenue budget.
PROCUREMENT REVIEW:
These goods and services were procured in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny