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 Fixed Base Operator Lease Amendment No. 2 with Sheltair Ocala, LLC to accommodate hangar development expansion at the Ocala International Airport
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
NA
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BACKGROUND:
On June 1, 2015, the City entered into a 30-year lease agreement (the "Original Lease") with Sheltair Ocala, LLC ("Sheltair") to provide fixed based operations, contribute financially to a new general aviation terminal building, and construct a new corporate hangar of at least 10,000 sq. ft., all of which has been satisfied.
The lease was amended in February 2020 ("Amendment No. 1") to accommodate 3,085sq. ft. of rental space in the new general aviation. Amendment No. 1 also reset the term to 30 years for construction of a new 20,000 sq. ft. hangar which became operational in December 2020.
With the Airport experiencing unprecedented demand for hangar space, Sheltair requests Amendment No. 2 to accommodate a phased construction of five, 20,000 sq. ft. hangars over the course of 10 years. This construction will occur on property currently leased and optioned by Sheltair.
FINDINGS AND CONCLUSIONS:
Amendment No. 2 is consistent with the intent of the original lease and Amendment No. 1.
Sheltair is in good standing, is a proactive partner in Airport development, and has met their obligations as set forth in the Original Lease.
Amendment No. 2 provides for three phases of construction. Phase 1 will take place on property already leased by Sheltair, will accommodate two new hangars and requires demolition of Hangar 14, the oldest hangar at the Airport. The Phase 2 parcel will accommodate two additional hangars. Phase 3 involves removal and replacement of a smaller hangar also located on the existing Sheltair leasehold. In all, Amendment ...
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