Title
Corporate Hangar License and Ground Lease
Action
Action:
A. Approve a 10-year license with Davinci Jets for a corporate hangar at Charlotte Douglas International Airport,
B. Authorize the City Manager to extend the license for up to two additional, five-year extension terms,
C. Approve a 10-year ground lease with Davinci Jets for the construction of a parking lot at Charlotte Douglas International Airport, and
D. Authorize the City Manager to extend the ground lease for up to two additional, five-year extension terms.
Body
Staff Resource(s):
Brent Cagle, Aviation
Haley Gentry, Aviation
Explanation
§ Aviation has agreed to license a corporate hangar located at 5207 Morris Field Drive to Davinci Jets (Davinci).
§ The hangar consists of 5,799 square feet of office space and 25,698 square feet of hangar space.
§ The annual rent is $373,431.58 and the 10-year license value is $3,734,315.80.
§ Rents for the facility will be adjusted periodically per the terms and conditions of the license to keep pace with market conditions.
§ To support Davinci’s operations at the corporate hangar, Aviation has also agreed to lease Davinci 0.13 acres to construct a parking lot addition of approximately 12 spaces to the existing vehicular parking lot.
§ The annual ground rent is $1,950 and the 10-year lease value is $19,500.
§ Rents for the ground lease will be adjusted periodically per the terms and conditions of the lease to keep pace with market conditions.
§ This activity is occurring on airport property located in Council District 3.
Fiscal Note
Funding: Revenue will be deposited into Aviation’s Operating Budget.