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
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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
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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