Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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Annual renewal of the office and hangar lease with the Florida Department of Agriculture and Consumer Services for lease-year revenues of $54,874
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
NA
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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 several helicopters and fixed-wing aircraft assets 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, 2026. Forestry requested an annual renewable lease extension with a commencement date of April 1, 2026, and continues in effect from year to year until either party provides notice of termination.
The proposed gross lease includes a blended rate for hangar and office space over the rental period based on a formula of dedicated office space, common office space, and dedicated hangar space, which totals 5,813 square feet. The 2026 blended rate equates to $9.44 per square foot and increases by 3 percent annually.
Revenue will be applied to account 451-362-000-000-02-31191.
FINDINGS AND CONCLUSIONS:
• Forestry is a tenant in excellent standing.
• The lease is for office and hangar space at 750 SW 60th Avenue, otherwise known as Hangar 19.
• The Florida Department of Fish and Wildlife (FWC) is the other tenant in Hangar 19.
• This lease agreement represents a 3 percent rental amount increase for 2026 with subsequent annual 3% increases until the lease is terminated.
• Either party may terminate the lease with 90 day written notice.
• The Ocala Airport Forestry office employs two pilots and two mechanics.
FISCAL IMPACT:
First lease-year annual revenue is $54,874.
Rent increases 3 percent annually.
Revenue will be applied to account 451-362-000-000-02-31191.
PROCUREMENT REVIEW:
This agreement has been reviewed by the Procurement and Contracting Officer in compliance with City policies and procedures.
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