Department
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 (Lessor) and Innova Solutions, Inc., (Lessee) for a site consisting of approximately 2.5 acres at the Fulton County Executive Airport - Charlie Brown Field; authorizing the Chairman to execute the Ground Lease Agreement and related documents; authorizing the County Attorney to approve the Ground Lease Agreement and related documents as to form and to make any modifications thereto to protect the County’s interests prior to execution; and for other purposes.
Request approval of a recommended proposal, Real Estate and Asset Management, 23RFP032723K- JA, Ground Lease and Private Hangar Development for Fulton County Executive Airport, to enter into a Ground Lease Agreement between Fulton County, Georgia (Lessor) and Innova Solutions, Inc., (Lessee) for a site consisting of approximately 2.5 acres at the Fulton County Executive Airport - Charlie Brown Field; authorizing the Chairman to execute the Ground Lease Agreement and Private Hangar Development and related documents; authorizing the County Attorney to approve the Ground Lease Agreement and related documents as to form and to make any modifications thereto to protect the County’s interests prior to execution; and for other purposes. Upon execution of the Ground Lease Agreement, the initial term will be for twenty (20) years, with two (2) five (5) year renewal options. (APPROVED AS AMENDED)
ITEM REMOVED FROM THE CONSENT AGENDA FOR SEPARATE CONSIDERATION AS REQUESTED BY THE COUNTY MANAGER
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
This Agenda Item is presented pursuant to O.C.G.A. Sec. 36-9-2 and Sec. 36-10-1 36-1, which provide that 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. Further, O.C.G.A. Sec. 6-3-25 authorizes the County to lease portions of airport property for an initial term of up to 50 years.
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 Fulton County Department of Public Works, the Department of Real Estate and Asset Management (DREAM) and the Purchasing Department completed “23RFP032723K JA, Ground Lease and Hangar Development at Fulton County Executive Airport” and it is the recommendation of staff to award Innova Solutions, Inc., a Ground Lease Agreement for approximately 2.58 +/- acres of land for the development of airport hangar space at the Fulton County Executive Airport - Charlie Brown Field. The initial term of the Ground Lease Agreement will be for 20 years, with two (2) automatic five (5) year renewals. The initial rent will be $56,298.50 annually, which shall be increased by one percent (1%) for the following year on each anniversary of the Effective Date. Further, on each fifth calendar year, (e.g., 2025, 2030, 2035, etc.), during the Original Term and any Extension Term, the monthly rent and percentage rental adjustment for the following five-year period, effective on the anniversary of the Effective Date, shall be determined by an appraisal or market survey of comparable aeronautical properties with similar facilities in order to determine fair market value.
Community Impact: Approval by the Board of Commissioners to execute a lease agreement with Innova Solutions, Inc., a Georgia corporation, will not adversely impact the community.
Department Recommendation: The Department of Real Estate and Asset Management and the Fulton County Department of Public Works recommends approval of the Ground Lease Agreement between Fulton County and Innova Solutions Inc., for the purpose of formalizing the rental terms which include, but are not limited to, the approximate acreage that will be subject to the Ground Lease Agreement and the monthly rental payments that Fulton County will receive during the lease term.
Project Implications: The Ground Lease Agreement between Fulton County and Innova Solutions, Inc., is a revenue generating lease agreement for the County and will allow the County to receive revenue that can be used for the operations of the Fulton County Executive Airport - Charlie Brown Field.
Community Issues/Concerns: None.
Department Issues/Concerns: None.
Fiscal Impact / Funding Source
Funding Line 1:
Monthly revenue that will be received during the initial term and the permitted renewal terms will be deposited into the Airport Enterprise Fund # 200-540-5601-5220.