Title
From the Acting Director, Department of Transportation, and the Airport Director, requesting authorization to amend Airport Agreement No. TF-1158 with Gran-Aire, Inc., extending the agreement on a year-to-year rental basis, for the operation of a fixed base operator facility at Lawrence J. Timmerman Airport.
Body
POLICY
County Board approval is required to extend certain agreements beyond one year at Lawrence J. Timmerman Airport (LJTA).
BACKGROUND
Milwaukee County entered into a lease agreement on October 30, 1997, with Gran-Aire, Inc. for the lease of buildings and land for engaging in and conducting a fixed base operation at LJTA. The agreement had an initial term of five years ending on June 30, 2001, with an option to renew the Agreement for four additional five-year option terms. Gran-Aire, Inc. has exercised two of its four option terms. The second of four option terms expired on June 30, 2011, and Gran-Aire, Inc. has been operating on a month-to-month basis under the same terms and conditions of the base agreement as amended. Gran-Aire has requested to operate in the third rental option under redefined rents and expenses since transient and corporate aircraft activity levels have significantly decreased over the past several years. Local pilots continue to store aircraft at LJTA but are not significantly operating their aircraft during this economic downturn. As a result, Gran-Aire is no longer exposed to the revenue producing possibilities that existed when the lease commenced in 1997 and existed through 2008.
Lawrence J Timmerman Airport (LJTA) serves private and corporate aircraft given the term, “General Aviation” or “GA”. General aviation, particularly that segment served by LJTA, has been in a holding pattern in the United States. Piston and turbine aircraft sales have been flat for the past ten (10) years. The Federal Aviation Administration (FAA) projects that, over the next 20 years, the GA fleet will grow modestly; however, ...
Click here for full text