Title
Airport Facility and Ground Lease to FedEx
Action
Action:
A. Approve a facility lease with FedEx Corporation for a cargo facility at Charlotte Douglas International Airport for a term through July 31, 2028,
B. Approve a nine-year ground lease with Fedex Corporation for 1.69 acres for a parking lot development, and
C. Authorize the City Manager to approve an additional five-year term for each lease and to amend the leases consistent with the purpose for which the leases were approved.
Body
Staff Resource(s):
Haley Gentry, Aviation
Ted Kaplan, Aviation
Explanation
§ FedEx is expanding its package delivery options and needs additional space for operations. The Airport has a vacant cargo facility at 4302 Yorkmont Road, which is adjacent to their existing location at 4200 Yorkmont Road.
§ The annual facility rent, ground rent, and airport services fees for the 4302 Yorkmont Road cargo facility are estimated to be $242,460.50.
§ The expiration date of the facility lease matches the expiration in Fedex’s lease for the cargo located at 4200 Yorkmont Road.
§ FedEx also desires to lease an adjoining 1.69 acres to develop a parking facility to support its operations.
§ The annual rent and airport services fees for the ground lease is estimated to be $37,686. The nine-year lease value is estimated to be $376,680.
§ This activity is occurring on Airport property located in Council District 3.
Fiscal Note
Funding: Revenue from the lease agreements will be deposited within Aviation’s Operating Budget.