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CL-2226 New Business   Item #: E.       
Meeting Date: 11/07/2019  
Subject:    Fixed Base Operator Lease
From: Marc Adelman

COUNCIL ACTION
Business Meeting:     11/07/2019
SUMMARY
Based on proposals received to provide fixed based operator (FBO) services at the Danville Regional Airport through a lease agreement, a public hearing was held on August 20, 2019.  Later, proposers completed a presentation to Danville City Council concerning their proposal to provide aviation related services.  Consequently, a recommendation was provided by City Council to execute a lease agreement with General Aviation Inc., and Averett University for FBO services.
BACKGROUND
Per input received by Danville City Council, a lease to provide fixed based operator services at the Danville Regional Airport was negotiated with General Aviation Inc. and Averett University.  The initial term of this agreement shall be with General Aviation Inc. and last for a period ending on June 30, 2021.  On July 1, 2021, the agreement shall be exclusively between the City of Danville and Averett University.  This agreement shall continue through December 31, 2024, unless earlier terminated under the provision of the lease agreement.

The FBO shall have an option, by mutual agreement, to renew this agreement for an additional three (3) periods of five (5) years each upon the terms and conditions of the lease.  The initial lease fee for rental facilities shall be $1500 per month and the fuel flow fee shall be $.08 per gallon.
RECOMMENDATION
Staff seeks direction from Danville City Council regarding authorization to execute the attached lease agreement for FBO services with General Aviation Inc. and Averett University.

Attachments
Resolution
FBO Lease


    

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