Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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Hangar Ground Lease amendment with R.L.R. Investments, LLC
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In 2014, Red Rover, Inc., approached Airport staff with a request to extend their ground lease with the City of Ocala to account for capital improvements made to its hangar. On January 20, 2015, City Council approved an Amended and Restated Ground Lease with Red Rover, Inc., extending the lease expiration from September 20, 2021, to September 30, 2029. On June 2, 2015, City Council approved the assignment of Red Rover, Inc.'s leasehold interest in the hangar to R.L.R. Investments, LLC (RLR).
FINDINGS AND CONCLUSIONS:
In 2024, RLR completed substantial capital improvements to its hangars including reskinning, roofing, and landscaping. RLR now requests a lease amendment to recognize this investment by extending the term of its lease from September 30, 2029, to December 27, 2050. This proposed expiration date aligns with the expiration dates on the leases for RLR's additional hangars at Ocala International Airport.
The existing monthly rent of $745.24 will remain unchanged through September 30, 2029. While the original lease provided for annual Consumer Price Index adjustments, the proposed amendment replaces them with a fixed 3 percent annual escalation.
Effective September 30, 2029, the monthly rent will be adjusted to $1,168.86, with annual increases applied thereafter for the remainder of the lease term.
A 2026 appraisal of aviation land supports the revised rent at $0.35 per square foot.
The Airport Advisory Board supports approval of the proposed amendment.
FISCAL IMPACT:
No change in rent through September 30, 2029.
Beginning September 30, 2029, monthly rent will increase to $1,168.86, with annual escalation thereafter.
Fiscal Year 2025-26 a...
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