HomeMy WebLinkAboutReports - 2023.09.21 - 40564
AGENDA ITEM: Oakland County International Airport Land Lease Termination - Pentastar
DEPARTMENT: Economic Development - Aviation and Transportation
MEETING: Board of Commissioners
DATE: Thursday, September 21, 2023 9:30 AM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-3293
Motion to approve and accepts the terms and conditions of the Land Lease Termination with
Pentastar Acquisition Co, LLC; further, authorizes the Chair or his designee to execute the Land
Lease Termination and all other related documents between the County and Pentastar Acquisition
Company, LLC.
ITEM CATEGORY SPONSORED BY
Lease Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
Oakland County International Airport (OCIA) leases parcels of land to various aviation businesses
for the purpose of constructing hangars, aviation ramps, and related appurtenances for conducting
aviation business at the airport. In 2019, the Aviation Division negotiated an Airport Land Lease with
Oakland Air Holding Company, LLC which was later assigned to and accepted by Pentastar
Acquisition Co., LLC pursuant to an Assignment of Airport Land Lease, effective February 20, 2020.
The Land Lease specified that one year from the commencement of the lease a minimum 10,000
square foot hangar had to be constructed on the property by Pentastar. Due to the assignment and
business interruptions caused by COVID-19, an extension of the time to construct the hangar was
approved until February 25, 2022. For financial and business reasons, Pentastar Acquisition has
been and remains unable to commence the hangar construction and has requested a termination of
the Airport Land Lease. Completing their due diligence for the construction of a hangar facility on
the parcel subsequently requested lease termination effective July 6, 2023.
The Airport Committee and Corporation Counsel have reviewed and approved the terms of the Land
Lease Termination including payment of rent through July 31, 2023, and the forfeiture of the lease
deposit amount of $18,429.25.
POLICY ANALYSIS
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
Aaron Snover, Board of Commissioners Created/Initiated - 9/21/2023
AGENDA DEADLINE: 09/21/2023 9:30 AM
ATTACHMENTS
1. Pentastar Land Lease Termination FINAL
COMMITTEE TRACKING
2023-09-20 Economic Development & Infrastructure - Recommend to Board
2023-09-21 Full Board - Adopt
Motioned by: Commissioner Charles Cavell
Seconded by: Commissioner Yolanda Smith Charles
Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Christine Long, Robert
Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson,
Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman (15)
No: None (0)
Abstain: None (0)
Absent: William Miller III, Gary McGillivray, Michael Gingell, Penny Luebs (4)
Passed
OAKLAND COUNTY INTERNATIONAL AIRPORT LAND
LEASE TERMINATION
This Airport Land Lease Termination (“Lease Termination”), effective upon the ____ day
of ______, 2023 (the “Effective Date”), is entered into by and between the County of
Oakland, a Michigan Constitutional Corporation (“Lessor”) and Pentastar Acquisition Co,
LLC, a Michigan limited liability company (“Lessee”). Lessor and Lessee are sometimes
referred to in this Lease Termination, collectively, as the “Parties” and, individually, as a
“Party.”
Whereas, Lessor and Lessee are parties to an Oakland County International Airport Land
Lease dated December 1, 2019 (the “Lease”) pursuant to an Oakland County
International Airport Assignment of Airport Land Lease effective February 25, 2020 (the
“Assignment”);
Whereas, the Lease is for real property located on the Oakland County International
Airport in Waterford Township, Oakland County, Michigan, and described as follows (the
“Property”):
The Property is further depicted in Exhibit A to the Lease, which is fully incorporated
therein: Part of the South 1/2 of Section 17, T.3N., R.9E., Waterford Township,
Oakland County, Michigan, described as: Commencing at the Southeast corner
of said Section 17; thence S 87° 49’ 02” W, 1675.00 FT. along the South line of
Section 17 and N 02° 10’ 58” W, 119.00 FT and S 87° 49’ 02” W, 350.00 FT. to the
point of beginning, thence from said point of beginning S 87° 49’ 02 ” W, 319.00
FT.; thence N 02° 23’ 21” W, 79.80 FT; thence. S 87°36’39” W, 47.93 FT.; N 02°23’
21” W, 44.68 FT.; thence N 02° 10’ 58” W, 601.03 FT.; N 87° 49’ 02” E, 368.29 FT;
thence S 02° 10’58” E, 725.34 FT. to the point of beginning. Containing 263,277 .70
square feet, 6.04 acres.
Whereas, the Parties wish to terminate the Lease.
Now, therefore, and in consideration of the mutual covenants and agreements of the
Parties, each Party agrees to the terms set forth below, as applicable:
1. The Lease shall be terminated effective July 6, 2023.
2. As consideration for the agreement to terminate the lease by Lessor, Lessee
agrees to and shall forfeit to Lessor the lease deposit amount of $18,429.25,
already paid by Lessee.
3. Rent shall not be paid by Lessee after July 31, 2023.
4. The provisions of the Lease specified in the Lease to survive termination shall
remain in full force and effect, specifically excluding Section 2 (c) of the lease.
5. Provided this Lease Termination is approved as required by Lessor’s approval
process and procedures, the Lease Termination shall be effective as of the
Effective Date.
6. This Lease Termination may be signed in counterparts which together shall be
deemed a fully executed document. Any signature to this Lease Termination
delivered electronically shall be deemed an original signature to this document.
This Addendum is executed on behalf of each Party on the date indicated below.
LESSOR
County of Oakland, a Michigan
Constitutional Corporation
David T. Woodward, Chairperson
Oakland County Board of
Commissioners
Date:____________________________
LESSEE
Pentastar Acquisition Co, LLC, a
Michigan limited liability company
By:_____________________________
Printed Name:____________________
Its:_____________________________
Date:____________________________
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