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HomeMy Public PortalAbout2020_08_11_O012 Airport Aviation Fuel Tank Site - Award of Lease The Town of Leesburg, Virginia PRESENTED: August 11, 2020 ORDINANCE NO. 2020-0-012 ADOPTED: August 11, 2020 AN ORDINANCE: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A GROUND LEASE AGREEMENT GRANTING THE EXCLUSIVE RIGHT AND PRIVILEGE TO LEASE A MAXIMUM OF 2,500 SQUARE FEET OF LAND OWNED BY THE TOWN OF LEESBURG AND LOCATED ADJACENT TO THE EXISTING FUEL TANK FARM ON THE LEESBURG EXECUTIVE AIRPORT, LEESBURG VIRGINIA, AND PRESCRIBING THE TERMS AND CONDITIONS AND RESTRICTIONS PERTAINING TO SUCH GRANT WHEREAS, the Town of Leesburg owns 2,500 square feet of vacant land, adjacent to the existing fuel farm on the Leesburg Executive Airport; and WHEREAS, the Town of Leesburg issued Invitation For Bid ("IFB") No. 100710- FY20-49, and solicited bids for the lease of up to a maximum of 2,500 square feet of vacant land for the construction and operation of one or two above-ground aviation fuel-storage tanks (the "Fuel Farm Site"), in accordance with Virginia Code Sections 15.2- 1800 and 15.2-2100 et seq.; and WHEREAS, the terms of the IFB included that the lease would be for 20 years with annual rent to be no less than$0.60 per square foot of the lease parcel, per year, with periodic price adjustments; and WHEREAS, the Town advertised the required descriptive notice of this ordinance; and WHEREAS, the Mayor of the Town of Leesburg publicly opened the bid(s) received from Kuhn Jet Center and ProJet Aviation LLC and read aloud or caused to be read aloud a brief summary of the bid(s) and inquired if any further bids were to be offered; and -2- AN ORDINANCE: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A GROUND LEASE AGREEMENT GRANTING THE EXCLUSIVE RIGHT AND PRIVILEGE TO LEASE A MAXIMUM OF 2,500 SQUARE FEET OF LAND OWNED BY THE TOWN OF LEESBURG AND LOCATED ADJACENT TO THE EXISTING FUEL TANK FARM ON THE LEESBURG EXECUTIVE AIRPORT, LEESBURG VIRGINIA, AND PRESCRIBING THE TERMS AND CONDITIONS AND RESTRICTIONS PERTAINING TO SUCH GRANT WHEREAS, the Town's Chief Procurement Officer has reviewed the bid submitted by Kuhn Jet Center and ProJet Aviation LLC, and deemed them to be consistent with the bid requirements; and WHEREAS, Kuhn Jet Center bid$0.60 per square foot of the lease parcel, per year, for a total of$1,500.00 per year; and ProJet Aviation LLC bid $2.00 per square foot of the lease parcel, per year, for a total of$5,000.00 per year. WHEREAS, the Leesburg Executive Airport Commission has reviewed the bids, and recommends that the Town Council reject the higher bid and award the lease of the Fuel Farm Site to Kuhn Jet Center, on the basis that the award to Kuhn Jet Center will make possible the establishment of a new Fixed Base Operator at the airport, which will provide greater revenue to the Town, comply with Federal Aviation Administration Grant Assurances, and benefit the public through competition among Fixed Base Operators ; and WHEREAS, the Airport Manager has reviewed the bids, and recommends that the Town Council reject the higher bid and award the lease of the Fuel Farm Site to Kuhn Jet Center,for the reasons set forth in this Ordinance and in the Staff Report submitted to Council; and WHEREAS, the Town Council has reviewed the bids, the recommendations of the Leesburg Executive Airport Commission and the Airport Manager, and the reasons therefore, -3- AN ORDINANCE: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A GROUND LEASE AGREEMENT GRANTING THE EXCLUSIVE RIGHT AND PRIVILEGE TO LEASE A MAXIMUM OF 2,500 SQUARE FEET OF LAND OWNED BY THE TOWN OF LEESBURG AND LOCATED ADJACENT TO THE EXISTING FUEL TANK FARM ON THE LEESBURG EXECUTIVE AIRPORT, LEESBURG VIRGINIA, AND PRESCRIBING THE TERMS AND CONDITIONS AND RESTRICTIONS PERTAINING TO SUCH GRANT and has determined, by the majority vote of the members elected to the Council in accordance with Virginia Code§ 15.2-2102, that the below enumerated reasons constitute sufficient reason affecting the interest of the Town to make it advisable to reject the higher bid and accept a lower bid from, and award the lease to, Kuhn Jet Center ("Kuhn"): 1. Additional Fixed Base Operator at the airport. Kuhn has submitted an application to operate as a full-service Fixed Base Operator (FBO) at the Airport. Under the Airport Rules, Regulations, and Minimum Standards ("RRMS"), FBOs are required to provide above-ground fuel storage tanks of at least 12,000-gallon storage capacity, located in approved areas, such as the fuel farm. The Airport Commission has approved the FBO application on the condition that Kuhn obtain an appropriate fuel farm ground lease; without a fuel farm ground lease, Kuhn's FBO application cannot be finally and unconditionally approved. Approval of Kuhn's FBO application will benefit the Town by providing competition among FBOs at the airport, which will (a) support the Town's compliance with FAA Grant Assurance requirements; and (b)benefit the public and users of the airport. 2. Higher total revenue to the Town. Once the lease is awarded and an unconditional approval of the FBO application may be granted to Kuhn, the Town will realize the following additional revenue which would not result from award of the lease to the higher -4- AN ORDINANCE: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A GROUND LEASE AGREEMENT GRANTING THE EXCLUSIVE RIGHT AND PRIVILEGE TO LEASE A MAXIMUM OF 2,500 SQUARE FEET OF LAND OWNED BY THE TOWN OF LEESBURG AND LOCATED ADJACENT TO THE EXISTING FUEL TANK FARM ON THE LEESBURG EXECUTIVE AIRPORT, LEESBURG VIRGINIA, AND PRESCRIBING THE TERMS AND CONDITIONS AND RESTRICTIONS PERTAINING TO SUCH GRANT bidder: (a) rental fees associated with required lease of 10 "tie-down" spaces at $14,400 per year; and(b)FBO license fees (1% of gross receipts on aircraft maintenance and line services). NOW THEREFORE, for the reasons set forth above in accordance with Virginia Code § 15.2-2102,the Council of the Town of Leesburg in Virginia, hereby ORDAINS: SECTION I. Bid No.100710-FY20-49 for the lease of a Fuel Farm Site consisting of a maximum of 2,500 square feet and located adjacent to the existing fuel farm on the Leesburg Executive Airport, Leesburg, Virginia, shall be awarded to Kuhn Jet Center. SECTION II. The Mayor is hereby authorized and directed to execute a Lease Agreement consistent with the terms and conditions and restrictions as listed IFB No. 100710- FY20-49, and awarded to Kuhn Jet Center, in a form approved by the Town Attorney. PASSED this 11t't day of August, 2020. Kelly rk, or Town of Leesburg ATTEST: lok • Clerk of Council LF\LeesburgRMS\Town_Clerk\Ordinances\2020\0811 Airport Aviation Fuel Tank Site-Award of Lease