Title
From the Director, Department of Transportation and Public Works, and the Airport Director, requesting authorization to sell Dr. Ted Silver's hangar facility at General Mitchell International Airport (GMIA) to Charles F. Zens and enter into a new lease agreement for the rental of approximately 5,100 square feet of land on which the hangar is located.
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POLICY
County Board approval is required for hangar sale transactions and for the issuance of long-term lease agreements at General Mitchell International Airport (GMIA).
BACKGROUND
Charles F. Zens is requesting to enter into a lease agreement for approximately 5,100 square feet of land at GMIA on which to operate and maintain an aircraft hangar upon County Board consent to the sale of an aircraft hangar from Dr. Ted Silver to Charles F. Zens. Mr. Zens has requested that the agreement be made coterminous with his other airport agreement Airport No. HP-1907, commencing on the date of sale. HP-1907 terminates October 14, 2013. Charles Zens is a current tenant of GMIA and owns and leases several hangars in the northeast hangar area of GMIA to support his air freight operation.
RECOMMENDATIONS
1. Airport staff recommends that Milwaukee County approve the purchase of the Ted Silver hangar by Charles F. Zens.
2. Airport staff further recommends that Milwaukee County enter into a new lease agreement with Charles F. Zens under the standard terms and conditions as other hangar plot lease agreements at General Mitchell International Airport, inclusive of the following:
a. The term of the agreement shall be coterminous with Airport No. HP-1907, effective on the date of sale.
b. Rental for the 5,100 square feet of land on which the hangar is located shall be at $0.2528 per square foot per annum (based upon the latest appraised fair market value), subject to adjustment each July 1 based on the Consumer Price Index (All Urban Consumers) for the Milwaukee area, which is computed by comparing the then-current January index with the index of the preceding January.
c. The agreement shall contain the current standard insurance and environmental language for similar hangar land lease agreements.
FISCAL NOTE
Airport revenue will be $1,289.28.
Prepared by: Steven Wright, A.A.E. - Airport Properties Manager
Approved by:
_________________________ ____________________________________
Jack Takerian, Director C. Barry Bateman
Transportation and Public Works Airport Director
H:\Private\Clerk Typist\Aa01\TPW&T 11\REPORT - Charles F Zens Purchase from Ted Silver.doc