Agenda Item Wording:
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Second reading and adoption of Ordinance No. 2021-11, authorizing the conditional 35-year lease of a parcel of approximately 65,000 sq feet of unimproved property at the Visalia Municipal Airport to Aircraft Mechanical Services (AMS) Inc for the purposes of a new aircraft maintenance facility, at the rate of Twenty-Eight Thousand and Eighty Dollars ($28,080) annually.
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Deadline for Action: None
Submitting Department: Administration - Airport
Contact Name and Phone Number:
Jody Miller, Airport Manager, 713-4282, Jody.Miller@visalia.city
Nick Mascia, Assistant City Manager, 713-4323, Nick.Mascia@visalia.city
Department Recommendation:
Staff recommends that Council conduct the second reading and adoption of Ordinance 2021-11 authorizing the City Manager to execute a ground lease agreement with AMS, Inc. for approximately 65,000 sq feet of unimproved property at Visalia Municipal Airport for the purpose of constructing a new aircraft maintenance facility at Visalia Municipal Airport. This is a thirty-five (35) year lease term, after which the parcel and any structures or improvements would revert to full ownership by the City of Visalia. The lease rate will be twenty-eight thousand and eighty Dollars ($28,080) annually, further adjusted annually based on the California Consumer Price Index. The ordinance will go into effect thirty (30) days after its passage.
Background Discussion:
AMS, Inc. has long operated aircraft maintenance facilities here at Visalia Municipal Airport and have consistently added income to the Airport not only through their monthly lease payments (for their current facility, which they will remain in even after the proposed new hangar is completed) but also through ancillary avenues tied to their operations such as tie-down fees, fuel sales, and other fees. The new facility would allow AMS, Inc. to greatly expand their operations by giving them the capability to service not only more aircraft but large...
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