SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving an Amendment to the Lease Agreement with Vector Air Management, LLC
Body
DEPARTMENT: Public Works
Department
PRESENTER(S): Todd Fessenden, Public Works
First Name Last Name, Title
FISCAL SUMMARY:
Cost as Recommended: $10,500 (revenue)
Budget Line Item Number: 530-00-000-481060-000000
POLICY ISSUES:
The current agreement expires March 31, 2024
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution amending the agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On April 28, 2023, the Town entered into a contract with ABS Aviation Consultancy, Inc dba Airport Business Solutions (ABS) to review the existing management and Fixed Base Operations (FBO) services agreements between the Town and Vector Air. Based on ABS’s recommendations, Town staff negotiated a proposed Management Agreement to separate airport management and FBO into two independent agreements - one for airport management and one for FBO services. Staff is still in negotiations on the FBO side. We have engaged Business Aviation Group to assist in lease rates and property values and Kaplan, Kirsch & Rockwell LLP to assist in developing an FBO agreement, as well as legal support.
This amendment allows Vector Air to continue leasing the property from April 1 - June 30, 2024, while a new agreement for FBO services (including property considerations) is finalized and approved by Council. This amendment allows the Town to continue receiving $3,500 per month during this time and Vector Air to operate the FBO and occupy the building.
COUNCIL PRIORITY(S) ADDRESSED:
ü Well-Maintained Transportation Infrastructure
ü Safe and Healthy Community
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution
2. Amendment
3. 12/12/2023 Lease Agreement