Public Hearing: YES ☐ NO ☒ Department: Airport
SUBJECT:
Title
Commission District(s): 1 and 6
Lease Amendment No. 7 to Contract No. 500676 (formerly Contract No. 79-1971) with Epps Air Service, LLC dba Aero Center Epps Atlanta, LLC (formerly Epps Air Service, Inc.) There is no cost to the County.
Body
Information Contact: Hunter Hines, Interim Airport Director
Phone Number: 770.936.5440
PURPOSE:
To consider approval of Lease Amendment No. 7 to Contract No. 500676 (formerly Contract No. 79-1971) with Epps Air Service, LLC dba Aero Center Epps Atlanta, LLC (formerly Epps Air Service, Inc.)
To consider authorizing the Chief Executive Officer to execute the Agreement.
NEED/IMPACT:
The County executed County Contract No. 500676 (formerly Contract No. 79-1971) with Epps Air Service, Inc. on March 30, 1979. The lease contains six previous amendments. On May 16, 2023, the Lease was further amended by a Consent to Leasehold Deed to Secure Debt whereby Epps Air Service, LLC dba Aero Center Epps Atlanta, LLC, became the Lessee under the Lease Agreement. Lease Amendment No. 7 was negotiated in accordance with the DeKalb County Code and accomplishes the following in part:
1. Deletes 0.85 acres (36,996.30 square feet) consisting of Lease Tract 5 and 5A and the Smokestack from the leasehold.
2. Adds 0.61 acres (26,400 square feet) identified as NW Tie-Down Ramp to the leasehold.
3. Extends the lease term for an additional fifteen (15) years from the current expiration date of March 31, 2040 to March 31, 2055.
4. Allows additional minimum capital improvements to the leased ground and improvements thereon in the amount of $5,481,800.
5. Revises the fuel flowage fee commission to $0.16 per gallon for fuel, oils and lubricants delivered to the leased property.
Approving Lease Amendment No. 7 to Contract No. 500676 (formerly Contract No. 79-1971) will benefit the County and the Airport and inure to the public interest as follows:
1. Improved and renovated hangar space will enable Lessee to attract additional users which will add revenue to the County.
2. Additional users will increase the amount of fuel and sales tax paid to the County.
3. Additional users should lead to additional private sector jobs at the Airport.
The proposed Lease Amendment was briefed to the DeKalb Peachtree Airport Advisory Board (AAB) on September 9, 2024, and a motion to recommend approval of the Lease Amendment passed 4-1.
The County Attorney has reviewed the document and approved it as to form pending Governing Authority approval.
The original documents are in the Airport file and will be forwarded to the Purchasing and Contracting Department after consideration of approval by the Governing Authority.
FISCAL IMPACT:
This is a revenue generating lease agreement. There is no cost to the County.
RECOMMENDATION:
Recommended Action
To approve the resolution and authorize the Chief Executive Officer to execute all necessary documents...
Attachment: Lease Amendment No. 7