On May 10, 2018, the Department of Aviation (DOA) received a proposal from Metroplex Flight Services, LLC (MFS) to enter into a Hangar and Ground Lease Agreement for Lease Site 15S at Fort Worth Meacham International Airport (Meacham).
Lease Site 15S is comprised of approximately 11,827 square feet of ground space and includes a 8,800 square foot hangar. Staff requests that the City Council authorize the execution of a Hangar and Ground Lease Agreement for a term of ten years, to commence on September 25, 2018 and expire on September 24, 2028. The lease will include three 5-year renewal options for an additional fifteen-years, bringing the total lease term to 25 years.
As a part of the Agreement, MFS will be required to complete mandatory improvements for the facility. These improvements will include, but are not limited to, roof repair/replacement, painting of the hangar exterior, including any gutters, trim and downspouts; submit a plan for use of interior office space that will require renovation or removal; and identify and submit a plan to accommodate parking needs. In addition, MFS has agreed to all coordination and costs associated with updating the hangar facility's Certificate of Occupancy in order to restore utility service. Mandatory improvements must be approved by the DOA and completed within six months of execution of the Lease, unless otherwise communicated.
The total revenue received from this lease will be approximately $33,000.00 annually or $2,750.01 per month. Revenue is based on a hangar rate of approximately $3.75 per square foot and a ground rental rate of $0.42 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges and Lessor's market analysis. Rental rates shall be subject to an increase on October 1st of any given year, based on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-year rate adjustments will apply for the ground rate starting on October 1, 2023 and every fifth year thereafter. The hangar rate will be adjusted every 10 years during the lease term, equal to the then fair market value, as determined by the Lessor's market analysis.
Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2.