SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Third Amendment to the Lease Agreement with Vector Air Management, LLC
Body
DEPARTMENT: Public Works Department
Department
PRESENTER(S): Todd Fessenden, Utilities Director
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 on Sept. 30, 2024. In keeping with Town Finance Policy, we need to have a valid contract with any contractor.
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution amending the agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On April 28, 2023, the Town of Erie 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.
Staff engaged Business Aviation Group (BA) and sub-consultant Airside FBO to assist in developing lease rates and property values. Staff also engaged legal counsel Kaplan Kirsch LLP (KK) to worked with Town staff and BA to draft an FBO agreement, as well as provide specialized aviation legal support. Staff sent the draft FBO Agreement to Vector Air on Aug. 23, and we are waiting on a response with any requested changes. KK also provided a draft purchase and sale agreement, which staff also reviewed and transmitted to Vector Air.
This amendment would also allow the Town to continue receiving $3,500 per month during this time and Vector Air to operate the FBO and occupy the building, as we work through final negotiations with a goal of completing that effort well before the end ...
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