STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: September 11, 2019
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize a lease agreement with Dallas Jet Holdings, LLC at Dallas Executive Airport ("Airport") for approximately (1) 824 square feet of lobby and office space within the Airport terminal; and (2) 97,049 square feet of Airport land and facilities for aviation related operations - Estimated Revenue: $8,741,094.06 over the initial term of the lease
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BACKGROUND
Dallas Jet Holdings, LLC ("Dallas Jet") is a subsidiary of Aero Management Group, Inc. ("AMG") which operates independent fixed-base operator ("FBO") facilities at multiple general aviation airports around the United States. AMG provides FBO services including fueling, aircraft tie-downs, parking, hangar services, flight instruction, aircraft rentals, and aircraft charter services and now desires, through Dallas Jet, to expand its operations to the Airport.
The City desires to lease to Dallas Jet approximately 824 square feet of lobby and office space within the Airport terminal for an initial term of five years, with four five-year renewal options. The City would additionally lease to Dallas Jet 97,049 square feet of land and facilities at the Airport for its new FBO operation for an initial term of twenty years, with two ten-year renewal options. As part of the lease agreement, Dallas Jet will make improvements to the rented Airport lobby and terminal space and will lease and renovate existing City hangar facilities at an investment of no less than $250,000.00. Dallas Jet will also sell no less than 24,268,652 gallons of fuel during the twenty-year initial term of the lease. This volume of fuel sales will generate approximately $2,900,000.00 of fuel revenue to the City by way of fuel flowage fees. Should Dallas...
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