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Home My WebLink AboutResolutions - 2024.12.12 - 41781 AGENDA ITEM: Airport Land Lease Termination with WLA Holdings, LLC DEPARTMENT: Economic Development - Aviation and Transportation MEETING: Board of Commissioners DATE: Thursday, December 12, 2024 11:11 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4690 _ 24-82 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Real Estate Yolanda Smith Charles INTRODUCTION AND BACKGROUND WLA Holdings, LLC entered into an Airport Land Lease with the Airport on March 12, 2015 for a 20- year term. The Land Lease provided a term of twenty years from January 1, 2015 to December 31, 2035. Due to a change in business direction, WLA Holdings advised the Airport they have entered into a purchase agreement with Boardwalk Hangar Co, LLC, for the sale of their hangar and improvements, subject to a seamless transition of the termination of their land lease and a new Airport Land Lease entered into with Boardwalk Hangar Co., LLC for the property located at 1661 Airport Road, Waterford. The Lease Termination Agreement will have an effective date of December 1, 2024. The Airport Division has negotiated a Land Lease with the Purchaser and a Lease Termination Agreement with the Lessee for a seamless transition of the property effective December 1, 2024. The Airport Committee and the County’s Office of Corporation Counsel have reviewed and agreed to the terms of the Lease Termination Agreement. BUDGET AMENDMENT REQUIRED: No Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@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 - 12/12/2024 David Woodward, Board of Commissioners Approved - 12/12/2024 Walt Herzig, Executive's Office Approved - 12/13/2024 Lisa Brown, Clerk/Register of Deeds Final Approval - 12/16/2024 AGENDA DEADLINE: 12/12/2024 7:00 PM ATTACHMENTS 1. WHAM Land Lease Termination - WLA Revision COMMITTEE TRACKING 2024-12-04 Economic Development and Infrastructure - Recommend to Board 2024-12-12 Full Board - Adopt Motioned by: Commissioner Linnie Taylor Seconded by: Commissioner Penny Luebs Yes: David Woodward, Michael Spisz, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor (16) No: None (0) Abstain: None (0) Absent: Michael Gingell, Kristen Nelson, Ajay Raman (3) Passed December 12, 2024 RESOLUTION #2024-4690 _ 24-82 Sponsored By: Yolanda Smith Charles Economic Development - Aviation and Transportation - Airport Land Lease Termination with WLA Holdings, LLC Chair and Members of the Board: WHEREAS the County of Oakland (“County”) owns the Oakland County International Airport in Waterford Township and 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. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and accepts the terms and conditions of the attached Lease Termination Agreement with WLA Holdings, LLC. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chair or their designee to execute the attached Lease Termination Agreement and all other related documents between the County and WLA Holdings, LLC. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: December 12, 2024 David Woodward, Commissioner Date: December 13, 2024 Walt Herzig, Chief Deputy County Executive Date: December 16, 2024 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2024-12-04 Economic Development and Infrastructure - Recommend to Board 2024-12-12 Full Board - Adopt Motioned by Commissioner Linnie Taylor seconded by Commissioner Penny Luebs to adopt the attached Real Estate: Airport Land Lease Termination with WLA Holdings, LLC. Yes: David Woodward, Michael Spisz, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor (16) No: None (0) Abstain: None (0) Absent: Michael Gingell, Kristen Nelson, Ajay Raman (3) Passed ATTACHMENTS 1. WHAM Land Lease Termination - WLA Revision 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 December 12, 2024, 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, December 12, 2024. Lisa Brown, Oakland County Clerk / Register of Deeds 1 OAKLAND COUNTY INTERNATIONAL AIRPORT LAND LEASE TERMINATION THIS LAND LEASE TERMINATION AGREEMENT (the “AGREEMENT”), effective the 1st day of December, 2024 (the “Effective Date”), is entered into by and between the County of Oakland, a Michigan Constitutional Corporation (“Lessor”) and WLA HOLDINGS, LLC, a limited liability company (“Lessee”), and BOARDWALK HANGAR CO, LLC (“Purchaser), concerning a certain land lease between County and Lessee dated March 12, 2015 (the “Lease”) for property located on the Oakland County International Airport in Waterford Township, Oakland County, Michigan, and described as follows (the “Property”), Part of the SE ¼ of the SE ¼ of Section 17, T3N, R9E, Waterford Township, Oakland County, Michigan. Beginning at a point located N 02°E01’30” W along the north and south section line 963.31 feet and S 87°E58’30” W 73.00 feet from the southeast corner of said Section 17; thence N 02°E01’30” W 40.00 feet; thence S 87°E58’30” W 180.00 feet; thence S 02°E01’30” E 345.00 feet; thence N 87°E58’30” E 180.00 feet; thence N 02°E01’30” W 305.00 feet to the point of beginning. Contains 62,100 square feet. and commonly known as 1661 Airport Road, Waterford, Michigan 4832. WHEREAS, Lessee has entered into a Purchase Agreement with Purchaser in which Lessee has agreed to terminate the Lease, effective upon the closing of that transaction, and Purchaser has agreed to enter a new lease with the County for the Property. NOW THEREFORE, and in consideration of the mutual covenants and agreements of the parties, each party to this Agreement agrees to the terms set forth below: 1. Termination. The Lease is terminated effective November 30, 2024 provided that the conditions precedent set forth below have been satisfied. 2. Lessee’s Obligations. Despite the termination of the Lease, Lessee shall remain liable to County for any obligations which have accrued under the Lease prior to its termination, and nothing set forth in this Agreement releases Lessee from such terms under the Lease or claims, known or unknown, arising therefrom. As of the effective date of the termination of the Lease, Lessee represents and warrants that all rents and other charges under the Lease have been paid and Lessee is not in default in the performance of any covenant, agreement or condition contained in the Lease. Lessee will not be responsible for any obligation to County concerning the Property based solely on facts or circumstances arising after the termination of the Lease. 2 3. Rent. Lessee represents it has paid to County the rent for the months prior to and during the period in which the Closing occurs as well as any other funds due under the Lease. Purchaser will be required to pay rent as well as a deposit as provided by Purchaser’s new lease. Lessee and Purchaser shall be responsible for any apportionment of rent for the month in which the Closing occurs. 4. Conditions Precedent. The termination of the Lease is contingent on the occurrence of the following events: a. The payment by Lessee of any and all amounts payable to County as of the date of such termination. b. The execution and delivery to County of the new lease between County and Purchaser for the Property and the execution of same by the County. c. The completion of the Closing, as evidenced by County’s receipt of documents confirming to County’s satisfaction that the Closing is complete, including, but not limited to, a certification executed by Lessee and the Purchaser the Closing has occurred. 5. Deposit. Upon completion of the Closing and receipt of the Deposit from Purchaser as a guaranty fund on the new lease, Lessor will return Lessee’s Deposit on account in the form of a check from the Oakland County Treasurer’s Office. 6. No Gap between Lease Terms. The new lease between County and Purchaser will be satisfactory to County only if it commences immediately upon termination of the Lease and that immediately following the termination of the Lease, Purchaser will be fully responsible for, pay in accordance with, and be bound by the terms and provisions of, the new lease in all respects. 7. Counterpart and Electronic Signatures. This Agreement may be signed in counterparts which together shall be deemed a fully executed document. Any signature to this Agreement delivered electronically shall be deemed an original signature to this Agreement. Signatures appear on the following pages. 3 This Agreement 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 WLA Holdings, LLC, a Michigan limited liability company By: Its: Date: PURCHASER Boardwalk Hangar Co, LLC, a Michigan limited liability company By: _______________________ Its: Date: APPROVED BY RESOLUTION OF THE OAKLAND COUNTY AIRPORT COMMITTEE DATED .