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 ground lease at Ocala International Airport with Enoch Aviation, LLC providing annual revenue of $3,600
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Enoch Aviation, LLC has proposed to construct a 100' x 110' hangar at the Ocala International Airport. Enoch Aviation LLC has been a tenant of Sheltair Aviation for several years and currently operates a Pilatus PC-12 turboprop aircraft.
To facilitate the development, Enoch proposes to lease a portion of airport property for 40 years, constructing the improvements at their own expense. At the end of the lease, ownership of the improvements reverts to the Airport.
While the revenue generated is relatively small, the lease rate is consistent with the other airport ground leases. The investment into the airport by the tenant is significant, as the construction area is sandwiched between three other hangar developments and has utility and grade difficulties. The tenant desires to begin construction as soon as possible.
The three neighboring hangar developments have no objection to the proposed hangar development and the project is consistent with the Airport Master Plan. The Airport Advisory Board supports the development.
FINDINGS AND CONCLUSIONS:
* Enoch Aviation, LLC is a corporate tenant of Sheltair Aviation operating a Pilatus PC-12 turboprop. They desire to have their own flight department and hangar at the Ocala Airport.
* The lease is based on the current, standard ground lease with rates established by an appraisal conducted in 2015 and adjusted for inflation.
* Lease parcel is 0.90 acres, and the hangar size will be 100' x 110'.
* The lease term is 30 years with two five-year extensions, for a total of 40 years.
* There are twenty-two other corporate ground leases at the Ocala Airport, ...
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