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HomeMy WebLinkAboutResolutions - 2025.02.11 - 41881 AGENDA ITEM: Airport Land Lease with BARK Investments, LLC DEPARTMENT: Economic Development - Aviation and Transportation MEETING: Board of Commissioners DATE: Tuesday, February 11, 2025 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2025-4862 _ 25-2 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Lease Yolanda Smith Charles INTRODUCTION AND BACKGROUND An RFP process was implemented the fourth quarter of 2024 to select a Lessee for the vacant parcel at Oakland County International Airport (OCIA) known as the South Hangar Development site off the South Service Drive on Highland Road. BARK Investments, LLC, comprised of the principals of the Royal Air FBO based at OCIA for more than 60 years, was the successful proponent. This land lease has a term of 30 years commencing March 1, 2025 through February 28, 2055, generating rental income of $81,515.09 annually. Under the Land Lease the County has the right to change the rental payment effective March 1, 2027 and each and every two years thereafter, as set forth in the Land Lease. The Lessee, at its sole cost is responsible for any improvements to the property and maintenance to the grounds including mowing, snow removal, and landscaping. The Airport Committee and the County’s Office of Corporation Counsel have reviewed and agreed to the terms of the Land Lease. 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 - 2/11/2025 David Woodward, Board of Commissioners Approved - 2/11/2025 Walt Herzig, Executive's Office Approved - 2/12/2025 Lisa Brown, Clerk/Register of Deeds Final Approval - 2/25/2025 AGENDA DEADLINE: 02/24/2025 7:36 PM ATTACHMENTS 1. LANDLEASE2025_BARK Investments COMMITTEE TRACKING 2025-02-05 Economic Development & Infrastructure - Recommend to Board 2025-02-11 Full Board - Adopt Motioned by: Commissioner Michael Gingell Seconded by: Commissioner Penny Luebs Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor, Robert Smiley (18) No: None (0) Abstain: None (0) Absent: Gwen Markham (1) Passed February 11, 2025 RESOLUTION #2025-4862 _ 25-2 Sponsored By: Yolanda Smith Charles Economic Development - Aviation and Transportation - Airport Land Lease with BARK Investments, LLC Chair and Members of the Board: WHEREAS the County of Oakland (“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 Airport Division has negotiated the attached Land Lease with BARK Investments, LLC; and WHEREAS the Land Lease will have a term of thirty years from March 1, 2025 to February 28, 2055, with annual rent fixed for the first two years at $81,515.09 per year; and WHEREAS under the Land Lease the County has the right to change the rental payment effective March 1, 2027 and each and every two years thereafter, as set forth in the Land Lease, and WHEREAS the Lessee, at its sole cost is responsible for any improvements to the property and maintenance to the grounds including mowing, snow removal, and landscaping; 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 thirty (30) years with BARK Investments, LLC. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chair or his designee to execute the attached Land Lease and all other related documents between the County and BARK Investments, LLC. BE IT FURTHER RESOLVED that no budget amendment is required as the revenue is already reflected in the County Airport Fund (#56500) FY 2025 – FY 2027 Adopted budget. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: February 11, 2025 David Woodward, Commissioner Date: February 12, 2025 Walt Herzig, Chief Deputy County Executive Date: February 25, 2025 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2025-02-05 Economic Development & Infrastructure - Recommend to Board 2025-02-11 Full Board - Adopt Motioned by Commissioner Michael Gingell seconded by Commissioner Penny Luebs to adopt the attached Lease: Airport Land Lease with BARK Investments, LLC. Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor, Robert Smiley (18) No: None (0) Abstain: None (0) Absent: Gwen Markham (1) Passed ATTACHMENTS 1. LANDLEASE2025_BARK Investments 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 11, 2025, 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 Tuesday, February 11, 2025. Lisa Brown, Oakland County Clerk / Register of Deeds