HomeMy Public PortalAbout1997_05_21SPECIAL MEETING MINUTES OF MAY 21, 199"/
A special meeting of the Leesburg Town Council was held on May 21, 1997 at 4:30
p.m., in the Lower Level Meeting Room. Notice having been delivered to all members of the
Leesburg Town Council priorthereto. The purposes of the meeting were to discuss the
proposed Comprehensive Town Plan and the lease assignment at the Leesburg Municipal
Airport. The meeting was called to order by Mayor Clem.
COUNCILMEMBERS PRESENT
I. Frank Buttery, Jr. (arrived late)
Jewell M. Emswiller (absent)
Joseph R. Trocino
Kristen C. Umstattd (absent)
B. J. Webb
Wilham F. Webb, Jr.
Mayor James E Clem
STAFF MEMBERS PRESENT
Town Manager Steven C. Brown
Deputy Town Attorney Deborah Welsh
Director of Planning, Zoning and Development Michael Tompkins
Chief of Comprehensive Planning Jerry Mucci
Airport Manager Juan Rivera
Discussion was held regarding the lease assignment at the airport.
MOTION: On motion of Mr. Webb, seconded by Mr. Trocino, the following resolution was
proposed and adopted.
97-119 - RESOLUTION -AUTHORIZING THE ASSIGNMENT OF THE GROUND
LEASE BETWEEN THE TOWN OF LEESBURG AND AEROVEST, INC., TO AAI,
AND COLLATERAL ASSIGNMENT OF THE GROUND LEASE AND FBO
OPERATING AGREEMENT TO LEND AND EXECUTION OF ESTOPPEL
CERTIFICATE, CONSENT AND RECOGNITION AGREEMENT
WHEREAS, the Town of Leesburg entered into a Deed of Lease and Operating Agreement
(Lease) on August 25, 1987, with Janelle Aviation, Inc., which was subsequently assigned on October 12,
1988 to Aviation Associates, L.P., and mended by First Amendment to Deed of Lease and Operating
Agreement dated October 12, 1988 and to Aerovest~ Inc., on February 11, 1992, and amended by Second
Amendment to Deed of Lease and Operating Agreement dated October 12, 1993 for the development of
approximately 2.4 acres of land at the Leesburg Municipal Airport; and
WHEREAS, American Beechcrafl Company (ABC) has been subleasing hangar and office space
from Aerovest, Inc., pursuant to a certain lease agreement dated November 25, 1991 and assigned
December 30, 1991 (Page Lease); and
WHEREAS, Aerovest, Inc., granted to ABC the option to purchase all of Aemvest's right, title
and interest in the lease agreement and agreed that ABC would be permitted to consm~ hangar and
office facilities on additional land that had been added to AerovesL Inc.,'s leased premises pursuant to a
Lease Purchase Agreement dated August 1, 1993 (Option Agreement); and
WHEREAS, ABC and the Town are parties to a certain Lease Agreement dated January 18,
1996 (FBO Agreement ) for providing fixed base operator (FBO) services at the Leesburg Municipal
Airport; and
WHEREAS, ABC has constructed a 19,030 Square foot Corporate Hangar on the additional land
and intends to exercise its option to purchase all Aerovest's rights and interest in the lease agreement; and
WHEREAS, American Aviation Investors, LLP (AAI) is a limited liability partnership formed
specifically for the purpose of constructing the Corporate Hangar and acquiring the rights and interest in
the lease agreement between the Town and Aerovest, Inc.; and
WHEREAS, AAI is an affiliate of ABC, having as its partners Frank W. Hulso IV (100% owner
o£ ABC) and Michael Fitzgerald (President of ABC); and
WHEREAS, Mr. Hulse and Mr. Fitzgerald own 80% and 20%, respectively, of AAI; and
WHEREAS, AAI is financing the purchase of the Page Lease and the Option Agreement through
Jefferson National Bank (Lender); and
SECTION I.
SECTION II.
Agreement to Lender.
WHEREAS,' the Lender desires approval of the assi~tmment of the Lease to AAI and a collateral
assignment to the Lender of the FBO Agreement and Lease; and
WHEREAS, Aerovest, Inc., has the fight to assign the Lease in accordance with Section 1 of
Article XVII of the agreement and ABC has the right to assign the FBO Agreement with prior approval of
the Town; and
WHEREAS, the Town Council has approval authority of any assi~t, nment of the lease and the
FBO Agreement:
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Vir~einia as follows:
The Town Council authorizes the Lease to American Aviation Investors, LLP.
The Town Council authorizes a collateral assignment of the Lease and the FBO
SECTION III. The Town Council authorizes the Mayor to execute the Estoppel Certificate,
Consent and Recognition Agreement between the Town and Lender.
VOTE:
Aye: Councilmembers Trocino, B.J. Webb, Wm. Webb and Mayor Clem
Nay: None
Absent: Councilmembers Buttery, Emswiller and Umstattd
Discussion was held on the £malization of the land use element of the Draf~ Town Plan.
On motion of, and duly seconded, the meeting was adjourned.
Clerk of Council
James E. Clem, Mayor
Town of Leesburg