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File #: 22-1509    Version: 1 Name: 11/21/22 Approve Lease with Great Lakes Air Repair d/b/a Beacon Aviation for 719 Airport Drive
Type: Resolution Status: Passed
File created: 11/21/2022 In control: City Council
On agenda: 11/21/2022 Final action: 11/21/2022
Enactment date: 11/21/2022 Enactment #: R-22-374
Title: Resolution to Approve a Lease Agreement between the City and Great Lakes Air Repair d/b/a Beacon Aviation for a Corporate Hangar Located at the Ann Arbor Municipal Airport
Sponsors: Christopher Taylor
Attachments: 1. Beacon Aviation Proposal 051322.pdf, 2. 221121 DC-3 719 Airport Drive Memo Final.pdf
Title
Resolution to Approve a Lease Agreement between the City and Great Lakes Air Repair d/b/a Beacon Aviation for a Corporate Hangar Located at the Ann Arbor Municipal Airport
Memorandum
Attached for your review and approval is a resolution to approve a lease agreement between the City of Ann Arbor and Great Lakes Air Repair d/b/a Beacon Aviation for the corporate aircraft hangar located at 719 Airport Drive.

The corporate hangar at 719 Airport Drive has been a privately-owned hangar on a long-term land lease with the City since the 1960s. The building has always been privately-owned and was most recently owned by Aviation Center, an airport fixed base operator (FBO), since the mid-1980s. Aviation Center's lease expired on November 30, 2018 and they have continued on a month to month basis since. Per the land lease, the building ownership reverts to the City at the end of the lease agreement.

After completion of an engineering condition assessment on the building and a Phase 1 Environmental Site Assessment on the grounds, the City issued RFP #19-30 to solicit proposals for the redevelopment of the building. The Airport Advisory Committee and staff evaluated the submitted proposals and selected a preferred proposal to move forward to the due diligence phase of the process. During the due diligence phase, the COVID pandemic struck and the proposer eventually withdrew the proposal.

After considering other potential options for the redevelopment of the building, it was decided to update and issue RFP #21-19. A new preferred proposal was selected by the Airport Advisory Committee and moved forward into due diligence. That proposal also withdrew due to economic issues. The airport received additional interest from other potential tenants during this time and they were encouraged to submit proposals. Beacon Aviation was one of these proposals. After re-evaluating the RFP proposals and the newly submitted Beacon Aviation proposal, Beacon Aviation was selected ...

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