Department
Department of Real Estate and Asset Management
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of a Resolution approving a Ground Lease Agreement between Fulton County, Georgia and Brakkam Aviation Management, LLC, a Georgia limited liability company, jointly with The Integral Group, LLC, a Georgia limited liability company, for the purpose of formalizing rental terms for an airport site consisting of approximately 13.879 +/- acres at the Fulton County Executive Airport - Charlie Brown Field; authorizing the Chairman to execute a Ground Lease Agreement and related documents; authorizing the County Attorney to approve the Ground Lease and related documents as to form and make all necessary modifications thereto prior to execution. For 40 years, with two five-year option periods.
(HELD ON 4/14/21 AND 4/21/21) (APPROVED)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
According to O.C.G.A. §§ 36-9-2 and 36-10-1, the Board of Commissioners has control of all property belonging to the County and all contracts entered into by the County shall be in writing and entered on its minutes.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
No
Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: The Department of Real Estate and Asset Management and the Airport Manager, with the assistance of the County Attorney, have negotiated mutually acceptable ground lease terms for an airport site consisting of approximately 13.879+/- acres with Brakkam Aviation Management, LLC and The Integral Group, LLC at the Fulton County Executive Airport - Charlie Brown Field. The approval of the Fulton County Board of Commissioners is being requested to execute a new ground lease agreement for approximately 13.879 +/- acres of unimproved real property for an initial lease term of forty (40) years with two (2) renewal optional of five (5) years each. Based on a rental rate of $10,000.00 per acre the initial monthly rental rate of Eleven Thousand Five Hundred Sixty-Five and 83/00s Dollars ($11,565.83) will be fixed during the initial five (5) year term and rent escalations of three percent (3%) will be made to the monthly rental rate at every five (5) year anniversary of the ground lease agreement. The County Attorney is authorized to review and approve the Ground Lease Agreement as to form and to make any modifications thereto in order to protect the interests of Fulton County prior to execution by the Chairman. Tenant must comply with Fulton County commercial minimum standards, Fulton County Code Section 10-89, as the same may be amended (we are currently working on amendments to propose for approval to the Board of Commissioners). It is important to note that the Tenant has 2 years from the Date of Execution of the Lease to submit architectural and engineering design plans and specifications and 5 years from the Date of Execution of the Lease to construct such improvements, unless extended by the County, the approval for which shall not be unreasonably withheld. At end of term, Tenant’s improvements revert to County. Tenant may not sell improvements/structures to third party without County approval.
Community Impact: None
Department Recommendation: The Department of Real Estate and Asset Management recommends approval of a Ground Lease Agreement between Fulton County and Brakkam Aviation Management, LLC and The Integral Group, LLC, for the purpose of leasing an airport hangar site consisting of approximately 13.879 +/- acres.
Project Implications: Approval of the Ground Lease Agreement will expand available fixed base operational services at Fulton County Executive Airport - Charlie Brown Field and increase revenue generated from the associated lease agreement.
Community Issues/Concerns: No issues or concerns have been raised by constituents or clients concerning this Agenda Item.
Department Issues/Concerns: None