LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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AIRPORT - ASSIGNMENT AND ASSUMPTION OF LEASE WITH CONSENTS, ECKO AIR, LLC TO BLUE AIR TRAINING LLC
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RECOMMENDATION:
recommendation
That City Council authorize the Mayor to execute the Assignment and Assumption of Lease with Consents to provide for the assignment of the ECKO Air, LLC Lease and Operating Agreement to Blue Air Training LLC. Further that City Council authorize the Mayor to take all necessary actions to execute the assignment.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In operation since 2004, ECKO Air leases approximately 28,840 square feet of land on which they constructed a hangar and office facility. During this time ECKO has subleased the area to a number of firms to provide specialized aviation services to the general aviation community. The hangar/office has been used for an aircraft avionics shop, an aircraft maintenance and repair facility, and a flight training facility.
The hangar is currently subleased to Blue Air Training LLC. Blue Air Training provides specialized contract training services to the United States military and uses the area to house and maintain their aircraft.
ECKO contacted Airport Staff requesting approval to sell their leasehold ownership in the hangar to Blue Air Training LLC. As provided in Article XXXII of the Lease and Operating Agreement, ECKO may not assign its rights, title and interest without first obtaining written consent from the City. This consent of the City may not be unreasonably denied.
PRIOR ACTION:
July 22, 2004 - City Council approved the lease agreement and operating permit with ECKO Air, LLC.
February 10, 2005 - City Council approved Amendment 1.
July 25, 2005 - Amendment 2 completed, providing for legal description.
April 22, 2012 - City Council approved Amendment 3.
September 27, 2012 - City Council approved sublease to Heli-Works, LLC / Dyncorp International.
January 31, 2017 - Mayor approved sublease to Resicum.
March 9, 2017 - City Council approved Amendment 4.
February 14, 2019 - City Council approved sublease to Blue Air Training LLC.
FUNDING:
N/A
FINANCIAL IMPACT:
The assignment will be revenue neutral as Blue Air Training LLC will assume the current ECKO Air, LLC payment obligations.
CITY ATTORNEY REVIEW: Yes
4/4/2019
STAFF CONTACT:
Christopher L. Holley, City Administrator
Daniel E. Flynn, Airport Director
ATTACHMENTS:
1) Assignment and Assumption of Lease with Consents for ECKO Air
PRESENTATION: No end