Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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Assignment of the ground lease with Worldwide Alliance, LLC, to PRP Hangars, LLC, and memorandum of lease and consent to mortgage for same
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On December 15, 2020, City Council approved a 30-year ground lease with Worldwide Alliance, LLC (Worldwide) at Ocala International Airport. Worldwide now seeks to assign its lease to PRP Hangars, LLC (PRP), the operator of PRP Aviation, which is located in the hangar directly adjacent to Worldwide.
PRP Aviation has experienced substantial growth since commencing operations in 2022. PRP intends to mortgage its leasehold interest in the parcel with Citizens First Bank (Citizens) and seeks City Council’s approval for the same. It is anticipated that Citizens will require a memorandum of lease to provide public and constructive notice of PRP’s interest in the parcel, and, accordingly, a memorandum of lease is attached for execution by City Council.
FINDINGS AND CONCLUSIONS:
The original lease allows for the transfer and assignment of the ground lease. The original lease also permits the tenant to make leasehold mortgages. PRP is an existing Airport tenant and is in good standing. No other changes to the lease are proposed.
Staff recommends approval.
FISCAL IMPACT:
Fiscal Year 2025-26 annual revenue is $7,009.44 in account 451-362-000-000-02-31211.
The lease rate increases 3 percent annually every January for the duration of the lease term.
PROCUREMENT REVIEW:
This agreement has been reviewed by the Procurement & Contracting Officer in compliance with City 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