HomeMy WebLinkAboutResolutions - 2018.02.01 - 23249MISCELLANEOUS RESOLUTION 018017 February 1, 2018
BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee
IN RE: CENTRAL SERVICES AVIATION DIVISION — AIRPORT LAND LEASE: KOSTICH FAMILY
INVESTMENTS, LLC
To The Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the County") owns the Oakland County International Airport in
Waterford Township; and
WHEREAS parcels of land are leased to various aviation businesses for the purpose of constructing
hangars, aviation ramps, and related appurtenances for conducting aviation business at the Airport; and
WHEREAS the Aviation Division has negotiated the attached Land Lease with Kostich Family Investments,
LLC; and
WHEREAS the Land Lease will have a term of twenty years from August 1, 2018, to July 31, 2038, with
annual rent fixed for the first two years at $39,033.60; and
WHEREAS under the Land Lease the County has the right to change the rental payments each and every
two years, as set forth in the Land Lease; and
WHEREAS the Airport Committee and the County's Office of Corporation Counsel have reviewed and
agreed to the terms of the Land Lease.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and accepts the terms and conditions of the attached Land Lease for twenty (20) years with
Kostich Family Investments, LLC.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chairperson or
his designee to execute the attached Land Lease and all other related documents between the County
and Kostich Family Investments, LLC.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing
resolution.
jCommVsioner Philip Weipert, District #8
Chairperson, Planning and Building Committee
PLANNING AND BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
ADR REVIEW SIGN OFF — Aviation & Transportation
RESOLUTION TITLE: Central Services Aviation Division — Airport Land Lease: Kostich Family Investments,
LLC
DEPARTMENT CONTACT PERSON: Michell Stover/666 -5980
DATE: January 10, 2018
DEPARTMENT REVIEW
Department of Human Resources:
Approved (No Committee) - Heather Mason (1/4/2018)
Corporation Counsel:
Approved —Jody Hall (1/5/2018)
Department of Management and Budget:
Approved — Lynn Sonkiss (1/10/2018)
OAKLAND COUNTY INTERNATIONAL AIRPORT
AIRPORT LAND LEASE FOR CONSTRUCTION OF PERMANENT BUILDING
THIS LEASE, to be effective the August 1, 2018 is made by and between the
COUNTY OF OAKLAND, a Michigan Constitutional Corporation, hereinafter called the
COUNTY and KOSTICH FAMILY INVESTMENTS, LLC hereinafter called the LESSEE:
WHEREAS the County owns and operates the Oakland County International Airport
(OCIA) in Waterford Township and has real property available which can be leased to the
Lessee upon the terms and conditions set forth herein; and
WHEREAS the Lessee is desirous of leasing the real property described below
according to the terms and conditions set forth herein.
NOW THEREFORE THIS AGREEMENT WITNESSETH:
la) Description of Leased Property. The County leases to the Lessee and the
Lessee leases from the County for a period of twenty years (20), commencing August 1,
2018 and expiring July 31, 2038 the following real property located on the OCIA, Waterford
Township, Oakland County, Michigan (hereinafter referred to as "Property"):
PARCEL A: Part of the NE 1/4 of Section 17, T3N, R9E, Waterford Township,
Oakland County, Michigan, described as follows; Commencing at the East 1/4
corner of said Section 17; thence N 02°17'30" W 951.46 ft. along the East line of
said Section 17 and the centerline of Airport Road; thence S 87°41'21" W 33.00 ft
to the West R.O.W. line of said Airport Road, and the point of beginning; thence S
87°5211" W 125.39 ft.; thence S 87°52'1 W 341.00 ft.; thence N 02°07'49" W
327.17 ft.; thence N 87°52'1? E 465.38 ft. to the said West R.O.W. line of Airport
Road; thence S 02°17'30" E 327.17 ft. to the point of beginning. This description
contains 144,568.50 square feet more or less.
The Property is further depicted in Exhibit A to this Lease, which is fully incorporated
herein.
1b) Rent Amount. Except as otherwise modified herein, as rent for the Property,
the Lessee shall pay the County a rate of $0.27 per square foot annually, which equals a
flat rate of $39,033.60 annually. The Lessee may choose to pay the rent annually or on a
monthly basis. The rent shall be paid in advance, regardless if it is paid annually or
monthly. If the rent is paid annually, it shall be due and paid on the date this Lease
commences and on the anniversary of that date for each year of this Lease thereafter. If
the Lessee chooses to pay the rent on monthly basis, it shall be due and paid in twelve
(12) equal installments of $3,252.80 per month on the first of each and every month while
this Lease is in effect. Rental payments will be computed from August 1, 2018. A late
charge of one percent (1%) per month on the unpaid balance shall be applied to payments
Page 1 of 10
made after the 20th of each month and shall be cumulative. Rent payments shall be made
out to the "County of Oakland" and shall be sent to or made at the OCIA, 6500 Highland
Road, Waterford, Michigan 48327-1649,
1c) Lease Renewal. The Lessee shall have the right to renew this Lease at the
expiration thereof upon such terms and conditions as shall be agreed upon between the
parties.
1d) Rent Increases. The County reserves the right to change the rent amount
provided under this Lease each and every two (2) years, first computation to be made from
the date the Lease commenced. The changes in the rent amount shall be based on the
rental rates in effect at the OCIA at the expiration date of each two-year period. An
amendment to the Lease providing for increased rent amounts shall be executed by the
parties. The Oakland County Airport Committee, created by the Oakland County Board of
Commissioners, (Airport Committee) shall have the authority to create, approve, and sign
such amendment on behalf of the County. If such amendment is not executed by the
Lessee within thirty (30) calendar days, then the County, by and through the Airport
Committee, may terminate this Lease upon notice to Lessee.
2a) Use of Property. The Lessee shall only use the Property for commercial use
incidental to the sale, servicing, and storage of aircraft, provided that other uses of the
Property may be authorized by resolution of the Airport Committee.
2b) Compliance with Law. The Lessee's use and operations at the Property
shall comply, at all times, with the laws, ordinances, and regulations of the Township of
Waterford, the County, the State of Michigan, the United States, the Michigan Aeronautics
Commission and the Federal Aviation Administration, including but not limited to, 42 U.S.C.
6991, et seq.; 40 C.F. R. Part 281; MCL 299.701, et seq.; Parts 201, 211, and 213 of the
Michigan Environmental Protection Act, Public Act 451 of 1994; the Comprehensive
Environment Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9601, et.
seq.; and all other relevant and appropriate local, state and federal laws and regulations.
The Lessee shall also comply with the OCIA rules and regulations in effect and as
amended. The OCIA rules and regulations are incorporated into this Lease.
2c) Reservation of Rights. This Lease does not and is not intended to impair,
divest, or contravene any constitutional, statutory, and /or other legal right, privilege, power,
obligation, duty, or immunity of the County.
3) Assignment and Subleasing. The Lessee shall not sublease, assign,
delegate, or transfer, in any manner, any rights or interests in this Lease without the prior
written permission of the Airport Committee.
4) Disruption/Obstruction of OCIA Business. The Lessee's use of the
Property shall not disrupt, obstruct, or inconvenience, in any manner, the business or
operations at the OCIA.
Page 2 of 10
5a) Removal of Lessee Improvements Upon Expiration of Lease. At the
expiration of this Lease, the Lessee shall within a reasonable time, not to exceed six (6)
months from the expiration, remove and dispose of all hangars, buildings, structures and
other improvements placed or constructed on or in the Property and restore the Property to
a level grade and to condition that compiles with Parts 201, 211, and 213 of the Michigan
Environmental Protection Act, Public Act 451 of 1994, the Comprehensive Environment
Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9601, et. seq., and all
other relevant and appropriate local, state and federal laws and regulations, unless such
hangars, buildings, structures, and other improvements are sold or transferred to the
County or another entity. All expenses associated with such removal, disposal, and
restoration shall be paid by the Lessee.
5b) Right to Improvements Upon Termination. If this Lease is (1) terminated
by operation of law, (2) terminated by another provision contained herein prior to its
expiration, or (3) terminated at any time during the term of this Lease, the County, by and
through the Airport Committee shall, upon thirty (30) days written notice, have the first right
of refusal to acquire the hangar, buildings, and/or other improvements constructed on or in
the Property by paying the Lessee the then fair market value, as determined by a certified
appraiser mutually selected and approved by the County, by and through the Airport
Committee, and the Lessee, the cost of the appraisal shall be borne equally by the parties.
If the County chooses not to acquire the hangar, buildings, and/or other improvements,
Lessee shall within a reasonable time, not to exceed six (6) months from the termination,
remove and dispose of all hangars, buildings, structures and other improvements placed or
constructed on or in the Property and restore the Property to a level grade and to a
condition that compiles with Parts 201, 211, and 213 of the Michigan Environmental
Protection Act, Public Act 451 of 1994, the Comprehensive Environment Response,
Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9601, et, seq., and all other
relevant and appropriate local, state and federal laws and regulations. All expenses
associated with such removal, disposal, and restoration shall be paid by the Lessee. If
Lessee does not remove and restore the Property within the six (month) period, then the
hangars, buildings, structures and other improvements on and in the Property shall
become the property of the County without further action of either party. The County may
remove and dispose of such property as it deems fit, provided that, the Lessee shall be
responsible to reimburse the County for all costs it incurs for the removal and disposal of
the hangars, buildings, structures and other improvements and for the restoration of the
Property to a level grade and to a condition that compiles with Parts 201, 211, and 213 of
the Michigan Environmental Protection Act, Public Act 451 of 1994, the Comprehensive
Environment Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9601, et.
seq., and all other relevant and appropriate local, state and federal laws and regulations.
Page 3 of 10
6) Quiet Enjoyment. Upon performance of its obligations under this Lease, the
Lessee shall peacefully and quietly hold and enjoy the Property for the term of this Lease
without hindrance or interruption by the County, its agents or employees, subject to the
terms and conditions of this Lease.
7) Indemnification. The Lessee shall indemnify, defend, and hold harmless the
County, its Boards, Commissions, officials, and employees from any and all Claims, as
defined herein, that are incurred by or asserted against the County or its Boards,
Commissions, officials, and employees by any person or entity, which are alleged to have
been caused by or found to arise from the acts or omissions of Lessee or its employees,
agents volunteers, subcontractors, invitees, or any other persons on the Property as a
result of Lessee's use of the Property. "Claim," as used in this Lease, means any losses;
complaints; demands for relief or damage; lawsuits; causes of action; proceedings;
judgments; penalties; costs or other liabilities of any kind which are imposed on, incurred
by, or asserted against a party or its Boards, Commissions, officials, and employees or for
which a party or its Boards, Commissions, officials, and employees may become legally or
contractually obligated to pay or defend against, whether commenced or threatened,
including, but not limited to, reimbursement for reasonable attorney fees, mediation,
facilitation, arbitration fees, witness fees, court costs, investigation expenses, litigation
expenses, or amounts paid in settlement.
8) Damage to Lessee Property. The Lessee shall be solely responsible for
any property loss or damage to any of its property located, kept, or stored on the Property
including but limited to, the hangar, buildings, equipment, and improvements, resulting from
fire, theft, or other casualty.
9) Improvements to Property. The Lessee shall be solely responsible, at its
expense, for any improvements to the Property that may be needed for its use of the
Property, including but not limited to, grading of land and installation of underground or
above-ground utilities (electric, septic tanks, water, sewer, above-ground fuel tanks, fiber,
and conduits). The Airport Manager shall approve, in writing, all improvements to the
Property, prior to construction, except for the construction of buildings or hangars, which
must be approved by the Airport Committee. The Lessee acknowledges that it had the
opportunity to inspect the Property and leases it "AS IS."
10) Use of Common Areas at OCIA. In conjunction with other tenants and
patrons at the OCIA, the Lessee has the right to use common areas of the OCIA, including,
but not limited to, the landing field, runways, apron to runways, taxi ways, and parking
facilities according to the rules and regulations of OCIA or the rules and regulations of
another governmental entity, e.g., the State or Federal Government.
11) Lien on Lessee Hangar/Buildings. The Lessee expressly grants to the
County a lien on the hangar and/or buildings that the Lessee constructs on the Property for
the security of the payments due the County by the Lessee under this Lease.
Page 4 of 10
12) Landing Fees. Lessee and any aircraft based in its hangar shall not be
required to pay landing fees at the OCIA. However, the Airport Committee reserves the
right to create and adopt a policy to charge all tenants and aircraft based at the OCIA
landing fees, if required by law or other financial contingencies. If such a policy is adopted
by the Airport Committee and applies to all tenants and aircraft based at the OCIA, then
this Section (Section 12—Landing Fees) of the Lease is void and shall be deemed severed
from the Lease.
13) Condition of Property. The Lessee, at its sole cost, shall keep the
hangar/buildings on the Property and the Property in compliance with all laws, regulations,
rules, and ordinances and in a good and tidy condition, e.g., the grass mowed, free from
weeds, free from rubbish and other unsightly objects or things. The condition of the
Property must be similar to how the County maintains and keeps its property at the OCIA.
The Lessee shall also be responsible, at its sole cost, for snow and ice removal,
maintenance and repair of any improvements on the Property, and maintenance of the
grounds, turf, and landscaping. If Lessee does not keep the hangar/buildings on the
Property and the Property in the condition required by this Section, the County may, upon
ten (10) calendar days notice to the Lessee, perform the work to bring the hangar/buildings
on the Property and the Property in compliance with this Section, provided, that the Lessee
shall reimburse the County for all costs it incurs under this Section.
14) Signs/Posters on Property. The Lessee shall not erect or display any signs
posters, or similar devices on the Property without the prior written approval of the Airport
Manager. Any signs, posters, or similar devices not approved by the Airport Manager shall
be removed without notice to the Lessee and at the Lessee's expense.
15) Taxes. The Lessee shall pay any taxes (real or personal) and any special
assessments, which are levied due to this Lease or the Lessee's operations at the
Property. If taxes or special assessments are not paid within sixty (60) calendar days of
the due date, then the County, by and through the Airport Committee, may terminate this
Lease upon written notice to the Lessee.
16) Access to Property. The County and its duly authorized employees shall
have the right of ingress and egress to the Property, including all buildings or
appurtenances placed or erected on the Property for inspection purposes or for any
purpose occasioned by emergency. The County and other governmental entities shall
have the right to enter the Property to maintain, repair, replace, or remove any sewers,
water mains, telephone lines, conduits, fiber, cable, other mediums of communication, and
any other installations on or in the Property. If the County or another governmental entity
performs work pursuant to this Section, then it shall leave the Property in as good an order
and condition as it was prior to the commencement of work.
Page 5 of 10
17) Failure to Make Payments Under the Lease. If the Lessee fails to make
any payments required by this Lease, and if the Lessee fails to make such payments for a
period of sixty (60) days, then the County, by and through the Airport Committee, may
terminate this Lease upon notice to the Lessee.
18) Bankruptcy/Judgements of Lessee, If any one of the following occurs, the
County may terminate this Lease by written notice: (1) the Lessee is subject to a
bankruptcy proceeding; (2) the Lessee is declared insolvent; or (3) the Lessee is placed
into receivership. If the County elects not to terminate this Lease, the County may accept
rent from the trustee, receiver, or person acting under court order for the remainder of this
Lease without impairing or affecting, in any way, the rights of the County against the
Lessee under this Lease.
19) Operation of Commercial Business. If the Lessee operates a commercial
business on the Property the following four sections apply, Nos. 20, 21, 22, and 23.
20) Level of Service. The Lessee shall furnish good, prompt and efficient
service adequate to meet all demands for its service at the OCIA.
21) No Discrimination. The Lessee agrees that and shall ensure for its
successors, subleases, and assigns that (1) no person on the grounds of race, color or
national origin shall be excluded from participation in, denied the benefits of, or be
otherwise subjected to discrimination in the use of the Property; and (2) that in the
construction of any improvements on or in the Property and the furnishing of services
thereon, no person on the grounds of race, color or national origin shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the
use of the Property; and (3) the Property is used in compliance with all other requirements
imposed by or pursuant by or Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in federally-
assisted programs of the Department of Transportation--effectuation of Title VI of the Civil
Rights Act of 1964, as said regulations may be amended.
22) Breach of Discrimination covenants. In the event of breach of any of the
above nondiscrimination covenants, the County, by and through the Airport Committee,
shall have the right to terminate the Lease and to re-enter and repossess, pursuant to law,
the Property and improvements thereon.
23) Nondiscriminatory Pricing. The Lessee shall charge fair, reasonable and
nondiscriminatory prices for each unit of sale or service, provided that the Lessee may be
allowed to make reasonable and nondiscriminatory discounts, rebates and other similar
types of price reduction to volume purchasers.
Page 6 of 10
24) Non-Exclusive and Subordinate Lease. This Lease shall be non-exclusive
and subordinate to the provisions of any existing or future agreement between the County
and the United States relative to the operation or maintenance of the OCIA, the execution
of which has been or may be required as a condition precedent to the expenditure of
federal funds for the development of the OCIA.
25) Development/Improvement of OCIA. The County reserves the rights to
further develop or improve the OCIA, including the landing field or other areas of the OCIA
as it sees fit, regardless of the desires or views of the Lessee and without interference or
hindrance from the Lessee.
26) Protection of ()CIA. The County, by and through the Airport Manager,
reserves the right to take any action it considers necessary to protect the aerial approaches
of the OCIA against obstruction, together with the right to prevent the Lessee from erecting
or permitting to be erected any building or other structure on the OCIA, which in the opinion
of the Airport Manager would limit the usefulness of the OCIA or constitute a hazard to
aircraft.
27) Remedies Not Exclusive. The County's and the Lessee's rights, remedies,
and benefits under this Lease are cumulative and shall not be exclusive of any other rights
remedies and benefits allowed by law or equity.
28) Successors. The covenants, conditions and agreements in this Lease shall
be binding on the parties' heirs, personal representatives, administrators, executors,
successors and assigns.
29) Entire Agreement. This Lease, the exhibits, and/or addendum, if any,
attached hereto and forming a part hereof set forth all the covenants, promises,
agreements, conditions and understanding between the parties and there are no matters,
whether written or oral, between the Parties other than set forth herein. The lease
supersedes the lease entered into between the Parties on August 25, 1998 and all
addenda to that lease.
30) Severability. If a court of competent jurisdiction finds a term or condition of
this Lease to be illegal or invalid, then the term or condition shall be deemed severed from
this Lease. All other terms or conditions of this Lease shall remain in full force and effect.
31) Notices. All notices required by this Lease shall be sent to the Lessee at the
following address or to such other address as the Lessee may designate by written notice:
Kostich Family Investments, LLC
2141 Airport Road
Waterford, MI 48327
Page 7 of 10
All notices required by this Lease shall be sent to the County at the following address or
such other address as County may designate by written notice:
Airport Manager
Oakland County International Airport
6500 Highland Road
Waterford, MI 48327
All notices required by this Lease shall be in writing and sent with postage prepaid,
registered or certified mail, return receipt requested.
32) Relationship of the Parties. Nothing contained in this Lease shall be
deemed or construed as creating the relationship of principal and agent or of partnership or
joint venture between the parties. The relationship between the parties is that of a landlord
and tenant.
33) Governing Law. This Lease shall be governed, interpreted, and enforced by
the laws of the State of Michigan. Except as otherwise required by law or court rule, any
action brought to enforce, interpret, or decide any Claim arising under or related to this
Lease shall be brought in the Sixth Judicial Circuit Court of the State of Michigan, the 51 st
District of the State of Michigan, or the United States District Court for the Eastern District
of Michigan, Southern Division, as dictated by the applicable jurisdiction of the court.
Except as otherwise required by law or court rule, venue is proper in the courts set forth
above. The choice of forum set forth above shall not be deemed to preclude the
enforcement of any judgment obtained in such forum or taking action under this Lease to
enforce such judgment in any appropriate jurisdiction.
34) Amendments. This Lease cannot be amended or modified, unless reduced
to writing and signed by both parties.
35) Waiver. Waiver of any term or condition under this Lease must be in writing
and notice given pursuant to this Lease. No written waiver, in one or more instances, shall
be deemed or construed as a continuing waiver of any term or condition of this Lease. No
waiver by either party shall subsequently affect its right to require strict performance of this
Lease,
36) Cumulative Remedies. A Party's exercise of any remedy shall not preclude
the exercise of any other remedies, all of which shall be cumulative. A Party shall have the
right, in its sole discretion, to determine which remedies are to be exercised and in which
order.
37) Captions. Section numbers, captions, and any indexes contained in this
Lease are intended for the convenience of the reader and are not intended to have any
substantive meaning and shall not be interpreted to limit or modify any substantive
Page 8 of 10
provisions of this Lease. In this Lease, for any noun or pronoun, use of the singular or
plural form, use of the nominative, possessive, or objective case, and any reference to
gender (masculine, feminine, and neuter) shall mean the appropriate form, case, or gender
as the context requires.
38) Survival. Sections 2d, 5a, 5b, 7, and 8 shall survive the expiration or
termination of this Lease.
39) Authorization. The parties represent and warrant that their respective
signatories have the requisite authority to execute this Lease and bind them to the terms
and conditions contained herein.
Revised August 2016
Page 9 of 10
IN WITNESS WHEREOF the parties hereto have executed this agreement on the date
hereunder indicated.
WITNESSES: COUNTY OF OAKLAND, a Michigan
Constitutional Corporation,
WITNESSES:
Michael J. Gingell, Chairperson
Oakland County Board of Commissioners
J. David VanderVeen, Director
Oakland County Central Services
KOSTICH FAMILY INVESTMENTS, LLC
LESSEE:
Kill Kostich
Page 10 of 10
RIGHT-OF-WAY SURVEY SKETCH
EXHIBIT "A"
CO
465.38'
KOSTICH FAMILY
INVESTMENTS
"Parcel A"
144,568.60 SQ. FT. OR 3.32 ACRES
341.00' 125.39'
33.00'
F-‘-•
Np
0' < 0
'
a_
EAST 1/4
CORNER
SECTION 17
2669.20'
T.3N., R.9E. TUBBS ROAD
EAST / WEST 114 LINE OF SECTION 17
NORTHEAST
CORNER
SECTION 17
T.3N., R.9E.
LL
LEGAL DESCRIPTION "KOST1CH FAMILY INVESTMENTS" LEASE PARCEL "A"
PART OF THE NE 1/4 OF SECTION 17, T3N, R9E, WATERFORD TOWNSHIP, OAKLAND COUNTY,
MICHIGAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE EAST 1/4 CORNER OF SAID
SECTION 17; THENCE N 0217'30"W, 951.46 FT. ALONG THE EAST LINE OF SAID SECTION 17
AND THE CENTERLINE OF AIRPORT ROAD; THENCE S 87°41'21" W, 33.00 FT. TO THE WEST
R.O.W. LINE OF SAID AIRPORT ROAD, AND THE POINT OF BEGINNING; THENCE S 87°5211" W,
125.39 FT.; THENCE S 87°52'11" W, 341.00 FT.; THENCE N 02°07'49" W, 327.17 FT.; THENCE
N 87°52'11" E, 465,38 FT, TO THE SAID WEST R.O.W. LINE OF AIRPORT ROAD; THENCE
S 02° 17'30" E, 327 .17 FT. TO THE POINT OF BEGINNING. THIS DESCRIPTION CONTAINS
144,568.50 SQUARE FEET MORE OR LESS..
DRAW 611 DJL 0A7E. 01/04/2018
kill WRC
WATER RESOURCES COMMISSIONER
ID, No.R
CHECKED BY: JR SCALE: 1" = 150'
JOB NAME; OAKLAND INT. AIRPORT SHEET 1 of 1
LOCATION:WATE R F 0 RD TOWNSHIP SECTION 17 1/4 NORTHEAST
OAKLAND INTERNATIONAL AIRPORT
-..2.i.,3 PM
FISCAL NOTE (MISC. #18017) February 1,2018
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: CENTRAL SERVICES AVIATION DIVISION — AIRPORT LAND LEASE: KOSTICH FAMILY
INVESTMENTS, LLC
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced
resolution and finds:
1. The resolution authorizes the Land Lease between Oakland County and Kostich Family
Investments, LLC at Oakland County International Airport.
2. Oakland County is the owner of Oakland County International Airport in Waterford Township.
3. Parcels of land are leased to various aviation businesses for the purpose of construction hangars,
aviation ramps, and related appurtenances for conducting aviation business at the airport.
4. The County has negotiated the Land Lease with Kostich Family Investments, LLC.
5. The Land Lease will have a term of twenty years from August 1, 2018, to July 31, 2038, with
annual rent fixed for the first two years at $39,033.60.
6. Under the Land Lease, the County has the right to change the rental payments each and every
two years, as set forth in the Land Lease.
7. A budget amendment is not required at this time as this is a lease renewal and the revenue is
already reflected in the FY 2018— FY 2020 budget.
Commissioner Thomas Middleton',--Blstrict #4
Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Long absent.
Resolution #18017 February 1,2018
Moved by Fleming supported by Zack the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Crawford, Fleming, Gershenson, Gingell, Hoffman, Kochenderfer, Long, McGillivray,
Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (18)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
HEREEIVAPPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUA T TOMCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on February 1,
2018, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 1 81 day of February, 2018.
Lisa Brown, Oakland County