SUBJECT/RECOMMENDATION:
Title
Approve a First Amendment to Lease and Property Operation Agreement for the Clearwater Airpark between the City of Clearwater (Lessor) and FlyUSA PV, LLC (Lessee) to provide for a 30-year initial term ending on February 29, 2053, with five five-year renewal options subject to mutual agreement of both parties among other minor revisions; and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
On January 17, 2023, City Council approved a Lease and Property Operation Agreement (Agreement) between the City of Clearwater (the City or Lessor) and FlyUSA PV, LLC (Lessee) for an initial five-year term through February 29, 2028, with one five-year unilateral renewal option, at the discretion of Lessee, and four subsequent five-year renewal options subject to mutual agreement of both parties.
As part of the partnership between FlyUSA and the City of Clearwater, FlyUSA is encouraged to make capital investments into the Airpark. FlyUSA will be making investments on multiple capital projects, including new corporate hangars, terminal, and parking lot.
Therefore, the Lessee requests, and staff supports, amending the Agreement to provide for a 30-year initial term with five five-year renewal options subject to mutual agreement of both parties. The Amendment also updates the language associated with monthly rent to ensure the rent payments agreed to in the initial agreement remain the same.
STRATEGIC PRIORITY:
High Performing Government: 1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
Economic & Housing Opportunity: 2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth.
