Title
Branch Banking and Trust Company Hangar Ground Lease
Action
Action:
A. Approve a 20-year lease agreement with Branch Banking and Trust Company, and
B. Authorize the City Manager to amend the lease for two, five-year lease extensions consistent with the purpose for which the agreement was approved.
Body
Staff Resource(s):
Brent Cagle, Aviation
Haley Gentry, Aviation
Explanation
§ Branch Banking and Trust Company (BB&T) desires to build a hangar at Charlotte Douglas International Airport and enter a ground lease with the City of Charlotte.
§ To prepare for the construction of the hangar, Aviation will complete all design and construction work associated with site preparation for the hangar, including a taxiway extension and relocation of an existing access road.
§ BB&T will reimburse the city for 100 percent of its pro rata share of the site preparation costs.
§ Once the site preparation is complete, BB&T will construct the actual hangar facility and all ancillary facilities at its cost.
§ In addition to reimbursement for its pro rata share of the site preparation costs, BB&T will pay the City of Charlotte ground rent and other airport rents and fees as determined by the hangar lease agreement and in accordance with applicable federal guidelines governing the leasing of the aeronautical facilities.
§ Aviation intends to bring a construction contract to City Council in third quarter 2019.
§ This activity is occurring on airport property, located in Council District 3.
Fiscal Note
Funding: Aviation Community Investment Plan; Revenue from the lease agreement will be deposited within Aviation’s operating budget