HomeMy WebLinkAboutResolutions - 2023.06.15 - 38275
AGENDA ITEM: Airport Land Lease Addendum - Midfield Management, LLC
DEPARTMENT: Economic Development - Aviation and Transportation
MEETING: Board of Commissioners
DATE: Thursday, June 15, 2023 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-2973 _ 23-99
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Lease Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
This is an addendum to the Airport Land Lease entered into between OCIA and Midfield
Management, LLC on April 11, 2013, and subsequently amended, to extend the term of the lease to
support financing of a multi-million construction project for a new hangar facility. The addendum
also reprioritizes future hangar/lobby development.
POLICY ANALYSIS
This is a request for the approval of the Airport Land Lease Addendum with Midfield Management,
LLC. The addendum allows for an extension and modification of Lessee’s obligations: a thirty-year
term that will expire on June 30, 2053, with the provision for the right to renew the Lease for an
additional twenty (20) years upon terms agreed by both parties, if required by the Lessee's lender to
secure financing. The addendum identifies the reprioritization of certain commitments for future
hangar/lobby development. The extended lease supports financing of a multi-million construction
project for a new hangar facility by Midfield on Parcels B and D. The original lease began in 2013
and followed by subsequent addendums to 2022. Lessee currently leases all or part of parcels A, B,
C, D and E ($213,436.71 paid annually to the County).
Midfield, at their cost, will remove the existing hangar and construct a new hangar on Parcel D. The
new hangar will be approximately 28,500 square feet. Also, Midfield, at their cost, will construct a
new lobby (addition) on Parcel B that is approximately 6,000 square feet and will be utilized solely
by Midfield. The current lobby space will be renovated as well. All plans will be approved by the
Airport Committee prior to construction for both the new hangar and new lobby. All construction of
the new lobby and renovation of the existing lobby will be completed within four (4) years from the
date of the addendum.
The addendum, as per the original agreement (approved in June 2022), continues the right for
termination of the lease by either party and the County has the right to change the rental payment
every two years. The Airport Committee and Corporation Counsel have reviewed and agreed to the
terms of the Airport Land Lease Addendum. On final approval by the Board, the Chair is authorized
or his designee to execute the addendum and all other related documents. A budget amendment is
not required.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional
information.
CONTACT
Cheryl Bush, Manager Aviation & Transportation
ITEM REVIEW TRACKING
Yolanda Smith Charles, Board of Commissioners Created/Initiated - 6/15/2023
David Woodward, Board of Commissioners Approved - 6/15/2023
Hilarie Chambers, Executive's Office Approved - 6/20/2023
Lisa Brown, Clerk/Register of Deeds Final Approval - 6/27/2023
AGENDA DEADLINE: 06/15/2023 6:00 PM
ATTACHMENTS
1. Midfield Management Land Lease Addendum 2
COMMITTEE TRACKING
2023-06-07 Economic Development & Infrastructure - Recommend to Board
2023-06-15 Full Board - Adopt
Motioned by: Commissioner Robert Hoffman
Seconded by: Commissioner Angela Powell
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan
Johnson (17)
No: None (0)
Abstain: None (0)
Absent: Ajay Raman, Gary McGillivray (2)
Passed
June 15, 2023
RESOLUTION #2023-2973 _ 23-99
Sponsored By: Yolanda Smith Charles
Economic Development - Aviation and Transportation - Airport Land Lease Addendum -
Midfield Management, LLC
Chair and Members of the Board:
WHEREAS the Department of Economic Development/Aviation Division is entering into an Airport
Land Lease Addendum with Midfield Management, LLC for the purpose of modifying the terms of an
existing agreement; and
WHEREAS the County of Oakland owns the Oakland County International Airport in Waterford
Township; and
WHEREAS parcels of land are leased to various aviation businesses for the purpose of conducting
aviation business at the Airport; and
WHEREAS the Aviation Division entered into a Land Lease with Midfield Management, LLC, on April
11, 2013 followed by subsequent Land Lease Addendums dated March 12, 2015, May 1, 2017,
August 1, 2019; and July 1, 2022; and
WHEREAS the Aviation Division has agreed to enter into a new Land Lease Addendum with Midfield
Management, LLC for the purpose of extending the Land Lease Agreement between the parties for a
thirty-year term to expire on June 30, 2053; and
WHEREAS the Land Lease Addendum will also provide for the right to renew the Lease at the
expiration of the initial period for an additional twenty (20) year period upon terms agreed upon by
both parties, if required by the Lessee's lender to secure financing; and
WHEREAS the Land Lease Addendum will acknowledge reprioritization of certain commitments for
future hangar/lobby development; and
WHEREAS under the Land Lease the County has the right to change the rental payment 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 Airport Land Lease Addendum.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and accepts the terms and conditions of the attached Airport Land Lease Addendum for
thirty (30) years with Midfield Management, LLC.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its
Chairperson or his designee to execute the attached Airport Land Lease Addendum and all other
related documents between the County and Midfield Management, LLC.
BE IT FURTHER RESOLVED that a budget adjustment is not required.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: June 15, 2023
David Woodward, Commissioner
Date: June 20, 2023
Hilarie Chambers, Deputy County Executive II
Date: June 27, 2023
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2023-06-07 Economic Development & Infrastructure - Recommend to Board
2023-06-15 Full Board - Adopt
Motioned by Commissioner Robert Hoffman seconded by Commissioner Angela Powell to adopt the
attached Lease: Airport Land Lease Addendum - Midfield Management, LLC .
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson,
Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan
Johnson (17)
No: None (0)
Abstain: None (0)
Absent: Ajay Raman, Gary McGillivray (2)
Passed
ATTACHMENTS
1. Midfield Management Land Lease Addendum 2
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 June
15, 2023, 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 Circuit Court at
Pontiac, Michigan on Thursday, June 15, 2023.
Lisa Brown, Oakland County Clerk / Register of Deeds
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OAKLAND COUNTY INTERNATIONAL AIRPORT
AIRPORT LAND LEASE ADDENDUM
THIS AIRPORT LAND LEASE ADDENDUM, effective _________, 2023, is entered into
by and between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation,
(“Lessor”) and MIDFIELD MANAGEMENT, LLC, a Michigan Corporation (“Lessee”).
WHEREAS Lessor and Lessee are Parties to a Land Lease dated April 11, 2013; an
Airport Land Lease Addendum dated March 12, 2015; an Airport Land Lease
Addendum dated May 1, 2017; an Airport Land Lease Addendum dated August 1, 2019
and an Airport Land Lease Addendum dated July 1, 2022 (all collectively referred to as
“Land Lease”); and
WHEREAS the real property leased to Lessee under the Land Lease is located at the
Oakland County International Airport in Waterford Township, Oakland County,
Michigan, and is described as follows:
PARCEL A, HANGAR NO. 1
Part of the Southwest ¼ of Section 17, Town 3 North, Range 9 East, Waterford
Township, Oakland County, Michigan, described as: Beginning at a point located
distant North 2° 7’ 38” West, 846.80 feet along the North-South section line, and
South 87° 28’ 03” West 271.29 feet (to ACP. No. 37) and South 88° 37’ 30” West
449.13 feet from the South ¼ corner of said Section 17; thence from said point of
beginning South 87° 27’ 44” West 257.00·feet; thence North 2° 31’ 25” West
538.61 feet; thence North 87° 27’ 44” East 257.00 feet; thence South 2° 31’ 25”
East 538.61 feet to the point of beginning. Containing 138,423 sq. ft. or 3.178
acres, more or less (hereinafter referred to as “Parcel A”).
Re: 6540 Highland
Tax Item No.’s: Part of 13-17-400-003 as to land, and 13-17-603-003 as to
Hangar No.1 located on Parcel A.
PARCEL B, HANGAR NO. 2
Part of the Southwest ¼ of Section 17, Town 3 North, Range 9 East, Waterford
Township, Oakland County, Michigan, also parts of Lots 14 through 19, Elwood
Farms No. 1, according to the plat thereof as recorded in Liber 60 of Plats, page
24, Oakland County Records, described as: Beginning at a point located distant
North 02° 07’ 38” West 846.80 feet along the North-South section line, and South
87° 28’ 03” West 271.29 feet (to ACP No. 37) and South 88° 37’ 30” West 449.13
feet and South 87° 27’ 44” West 257.00 feet from the South ¼ corner of said
Section 17; thence continuing from said point South 87° 27’ 44” West 228.10
feet; thence North 02° 29’ 59” West 118.40 feet; thence South 87° 30’ 01 second
West 88.36 feet; thence North 2° 31’ 25” West 596.64 feet; thence North 87° 16’
55” East 152.59 feet; thence South 04° 01 minute 23” East 47.12 feet; thence
North 87° 07’ 35” East 67.03 feet; thence South 16° 00’ 41” West 100.89 feet;
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thence North 87° 30’ 01 second East 127.63 feet; thence South 02° 31’ 25” East
573.13 feet to the point of beginning. Containing 197,603 sq. ft. or 4.536 acres,
more or less (hereinafter referred as “Parcel B”).
PARCEL C, HANGAR NO. 3
Part of the Southwest ¼ of Section 17, Town 3 North, Range 9 East, Waterford
Township, Oakland County, Michigan, also parts of Lots 14 through 19, Elwood
Farms No. 1, according to the plat thereof as recorded in Liber 60 of Plats, page
24, Oakland County Records, described as: Beginning at a point located distant
North 02° 07’ 38” West 846.80 feet along the North-South section line, and South
87° 28’ 03” West 271.29 feet (to ACP No. 37) and South 88° 37’ 30” West 449.13
feet and South 87° 27’ 44” West 257.00 feet and South 87° 27’ 44” West 228.10
feet and North 02° 29’ 59” West 118.40 feet and South 87° 30’ 01 second West
88.36 feet from the South ¼ corner of said Section 17; thence continuing South
87° 30’ 01 second West 13.48 feet; thence South 02° 29’ 59” East 30.00 feet;
thence South 87° 30’ 01 second West 33.08 feet; thence South 02° 29’ 59” East
59.40 feet; thence South 87° 30’ 01” West 256.92 feet; thence North 02° 29’ 59”
West 544.56 feet; thence North 87° 30’ 01 second East 152.05 feet; thence North
2° 29’ 59” West 140.90 feet; thence North 87° 16’ 55” East 151.18 feet; thence
South 02° 31’ 25” East 596.64 feet to the point of beginning. Containing 183,397
sq. ft. or 4.210 acres, more or less (hereinafter referred to as “Parcel C”).
PARCEL D, HANGAR NO. 4
Part of the East ½ of the Southwest ¼ of Section 17, Town 3 North, Range 9
East, Waterford, Oakland County, Michigan, also part of Lots 15 through 19,
inclusive, Elwood Farms Subdivision No. 1, as recorded in Liber 60, Page 24 of
Plats, Oakland County Records, all described as beginning at a point located
distant North 02° 07’ 38” West 846.80 feet along the North-South section line,
and South 87° 28’ 03” West 271.29 feet (to ACP No. 37) and South 88° 37’ 30”
West 449.13 feet and South 87° 27’ 44” West 257.00 feet and South 87° 27’ 44”
West 228.10 feet and North 02° 29’ 59” West 118.40 feet and South 87° 30’ 01
second West 101.84 feet and South 02° 29’ 59” East 30.00 feet and South 87°
30’ 01 second West 33.08 feet and South 02° 29’ 59” East 59.40 feet and South
87° 30’ 01” West 256.92 feet North 02° 29’ 59” West 94.75 feet from the South ¼
corner of said Section 17; thence South 87° 30’ 01” West 162.73 feet; thence
North 02° 28’ 29” West 199.15 feet; thence North 87° 30’ 01 second East 25.00
feet; thence North 02° 28’ 29” West 250.66 feet; thence North 87° 30’ 01” East
137.53 feet; thence South 02° 29 minute 59” East 449.81 feet to the point of
beginning. Containing 66,887 square feet or 1.536 acres, more or less
(hereinafter referred as “Parcel D).
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▪PARCEL E, HANGAR NO. 5
Part of the Southwest 1/4 of Section 17, T.03N., R.09E., Waterford Township,
Oakland County, Michigan, described as: Beginning at a point located distant N
02° 17' 54" W, 959.82 ft., along the West line of Section 17, and N 87° 14' 26" E,
480.00 ft., and N 74°26' 11" E, 163.74 ft. from the Southwest corner of said
Section 17; thence from said point of beginning N 02° 31' 59" W, 430.19 ft.;
thence N 87° 30' 01" E, 287.49 ft.; thence S 02° 28' 27" E, 250.66 ft.; thence S
87° 30' 03" W, 25.00 ft.; thence S 02° 28' 27" E, 199.15 ft.; thence N 87° 30' 03"
E, 162.73 ft.; thence S02° 29' 59" E, 94.75 ft.; thence S 87° 30' 01" W, 165.93 ft.;
thence N 68° 39' 40" W, 282.98 ft. to the point of beginning. Containing
149,678.67 Sq. Ft., 3.44 Acres (hereinafter referred to as “Parcel E”).
WHEREAS the Parties desire to amend the Land Lease to extend the term and modify
Lessee obligations regarding Parcels B and D.
NOW THEREFORE the Land Lease will be amended as follows:
1.Term. The term of the Land Lease is extended and will expire on June 30, 2053.
2.Lease Renewal. If required by the Lessee’s lender(s) to secure financing as
evidenced in document(s) issued by such lender(s) to the Lessor’s satisfaction
and delivered by the Lessee to the Lessor prior to the Lessor’s execution of this
Addendum and upon any exercise of any right granted under this Section, the
Lessee shall have the right to renew this Lease at the expiration of the initial
period set forth in above for an additional twenty (20) year period upon such
terms and conditions as shall be agreed upon between the parties set forth in an
amendment to the Land Lease executed by the parties, provided that such terms
and the provisions of this Section comply with all applicable laws, ordinances,
and rule and regulations of the Township of Waterford, the County, the State of
Michigan, the United States, any governmental agency, and the OCIA as may be
restated, replaced, supplemented, or otherwise amended, including, but not
limited to, any grant assurances governed by the Federal Aviation Administration.
To exercise such right to renew, Lessee must be in good standing under the
Land Lease and must deliver to the Lessor a written notice of such exercise and
the documentation evidencing the lending requirements described above not less
than six (6) months prior to the expiration of the initial period set forth above.
3.Removal of Existing Hangar and Construction of New Hangar on Parcel D.
Lessee, at its sole cost, has the right to remove the existing hangar on Parcel D
and construct a new hangar of approximately twenty-eight thousand five hundred
(28,500) square feet on Parcel D. The hangar and its plans shall be approved by
the Airport Committee, prior to construction of the hangar. If Lessee elects to
construct the new hangar Lessee shall receive the following for the hangar to be
constructed on Parcel D: (a) Environmental Review submitted to the Michigan
Department of Transportation (MDOT), (b) Airspace Approval for
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buildings/lights/towers and temporary cranes by MDOT/FAA, (c) Contractor
safety phasing plan to MDOT/FAA (if construction is inside AOA), (d) Building &
Site permitting/approvals, and (e) Design/bidding of the hangar.
4.Construction of New Lobby on Parcel B.
Lessee, at its sole cost, shall construct a new, approximately six thousand
(6,000) square foot, addition to the existing hangar on Parcel B. The addition
shall be used solely as a lobby for Lessee. Lessee shall also renovate the lobby
space existing as of the date of this Addendum into premium office space. All
construction of the new lobby and renovation of the existing lobby shall be
completed within four (4) years from the date of this Addendum. The plans for
the new lobby and renovation of the existing lobby space shall be approved by
the Airport Committee prior to construction. Lessee shall do the following: within
three (3) years from the date this Addendum is fully executed Lessee shall
receive the following for the lobby addition renovation construction on Parcel B:
(a) Environmental Review submitted to the Michigan Department of
Transportation (MDOT), (b) Airspace Approval for buildings/lights/towers and
temporary cranes by MDOT/FAA, (c) Contractor safety phasing plan to
MDOT/FAA (if construction is inside AOA), (d) Building & Site
permitting/approvals, and (e) Design/bidding of the hangar.
5.Airport Minimum Standards. The Airport Manager shall continue to enforce the
Airport Minimum Standard as required therein and as required by law.
6.Modifications. Except as expressly modified and amended herein, the Land
Lease shall remain in full force and effect.
7.Counterparts. This Addendum may be executed in one or more counterparts,
including facsimile and electronic copies, each of which shall be deemed an
original, but all of which shall together constitute one instrument.
8.Entire Agreement. This Addendum and the Land Lease set forth all covenants,
promises, agreements, conditions, and understandings between the Parties
concerning the lease of and use of Parcel A, B, C, D, and E and there are no
covenants, promises, agreements, conditions, or understandings, either oral or
written, between the Parties other than are herein set forth.
9.Authorization. The Parties represent that their respective signatories have the
requisite authority to execute and bind them to the duties and responsibilities
contained herein.
{Signatures contained on the following page}
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COUNTY OF OAKLAND, Lessor
David T. Woodward, Chairperson
Oakland County Board of Commissioners
MIDFIELD MANAGEMENT, LLC, Lessee
Name:
Title: