Title
FedEx Cargo and Parking Facility Lease
Action
Action
A. Approve a 10-year lease with FedEx Corporation for cargo space,
B. Approve a 10-year lease with FedEx Corporation for a parking facility, and
C. Authorize the City Manager to approve up to two additional, five-year renewal terms for each lease consistent with the purpose for which the lease was approved.
Body
Staff Resource(s):
Brent Cagle, Aviation
Haley Gentry, Aviation
Explanation
§ FedEx Corporation currently leases two cargo facilities from the Airport; the leases are set to expire in September 2018.
§ Under the new leases, FedEx will combine its two cargo facilities into one existing facility located at 4100 Yorkmont Road and construct a 4,500 square foot maintenance facility addition. Additionally, FedEx requires a separate tractor trailer parking facility.
§ Aviation will construct the addition to the existing cargo facility and the tractor trailer parking lot. The estimated cost for both facilities is $2,400,000. Actual costs upon construction completion for each facility will be calculated on a 10-year amortization schedule.
§ The facility lease of the existing cargo facility inclusive of facility rent, ground rent, and airport services fee is $533,355 annually or $5,333,550 for a 10-year total.
§ The parking facility lease is estimated to be $215,530 annually inclusive of improvements, ground rent, and airport service fee or $2,155,300 for a 10-year total.