From
Elsa Delgado
Title
Commercial Lease Agreement with Aviator Air, LLC for an annual rent of $24,305 for five (5) years with the tenant's option to renew for two additional five (5) year terms; and authorize the City Manager or designee to execute any renewal options with the same terms
Presenter
Mark J Divita, C.M., Airport Director
Recommended Action
Approve
Analysis
Aviator Air, LLC seeks to renew their commercial lease agreement for Hanger 3 South, approximately 2,500 square feet; and Hanger 4 South, approximately 8,000 square feet; 4 South Hanger offices approximately 4,000 square feet. The office areas in the Grand Prairie Municipal Airport Terminal - one approximately 531 square feet of office space to operate a pilot shop and dispatch area and the second approximately 127 square feet to provide an office area for the owner. The initial term of the lease will be for a period of five (5) years beginning October 1, 2018, and expiring September 30, 2023. The lease will contain a provision allowing the tenant first right of refusal for two (2) additional five (5) year terms.
Financial Consideration
Revenues received under the Commercial Lease Agreement will be in accordance with the FY19 Airport Fees Schedule. Aviator Air, LLC will be responsible for maintenance and upkeep of the facility. The airport will not assume responsibility for resolution of any code violations that may exist. Lessee is responsible for all utilities.
The rental revenue rate for commercial hanger facilities (3 South and 4 South) is $.21 per square foot per year for a total of Three Thousand Forty Five Dollars ($3,045.00). The rental revenue rate for Ramp/Apron Parking Areas (20 Tiedowns) is Three Hundred and Sixty Dollars ($360.00) per Tiedown per year for a total of Seven Thousand Two Hundred Dollars ($7,200.00) annually for tiedowns.
The terminal building office areas (Suite 101 and Suite 103) will lease for Twenty Dollars ($20.00) per square foot per year. The ...
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