Title
From the Director, Department of Transportation and Public Works, and the Airport Director, requesting authorization to enter into a lease agreement with ACC Holding, Inc., for the lease of approximately 2,232 square feet of warehouse space (Building 225) at the former 440th Air Force Reserve Base effective May 1, 2011, at General Mitchell International Airport (GMIA).
Body
POLICY
County Board approval is required for Milwaukee County to enter into a building lease agreement with ACC Holding, Inc. for a warehouse building at the former 440th Air Reserve Station (ARS) at General Mitchell International Airport (GMIA).
BACKGROUND
ACC Holding, Inc. (Air Cargo Carriers) is a cargo airline headquartered in Milwaukee with its main base of operations at General Mitchell International Airport. It was established in 1986 and is the largest civilian operator of Shorts aircraft in the world.
Currently Air Cargo Carriers occupies two hangers at GMIA as well as off-site office space. Their intent is to consolidate much of their operations in one location. The life support storage facility (building 225) at the former 440th ARS lends itself perfectly to meet their warehouse storage space needs.
RECOMMENDATION
Airport staff recommends that Milwaukee County enter into a lease agreement with ACC Holding, Inc., effective May 1, 2011, for the lease of 2,232 square feet of warehouse (building 225) at the former 440th Air Force Reserve Base, under standard terms and conditions for County-owned land and building space, inclusive of the following:
1. The term of the triple net lease agreement shall be for three (3) years, effective May 1, 2011, and ending April 30, 2014, with one (1) two-year mutual renewal option.
2. Any furniture, office equipment, or any other material identified will be inventoried in the building and made available to ACC Holding, Inc. at no charge, to be returned at the conclusion of the lease.
3. Rental for the approximately 2,232 square feet of space in the building will be established at: $2.75/sq. ft. for an approximate total of $6,138 for the first year of the lease; $3.00/sq. ft. for an approximate total of $6,696 for the second year of the lease; and, $3.15/sq. ft. for an approximate total of $7,030 for the third year of the lease. An option to extend the lease term for an additional two years shall be at the fair market value lease rate to be determined.
4. The lease agreement shall contain the current standard insurance and environmental language for similar agreements. Under these terms of this triple net lease agreement ACC Holding, Inc. will be responsible for the cost of insurance, utilities and common area maintenance charges.
FISCAL NOTE
Rental revenues will be approximately $6,138 for the first year of the agreement.
Prepared by: Ted J. Torcivia, Airport Business Manager
Approved by:
_________________________ ____________________________________
Jack Takerian, Director C. Barry Bateman
Transportation and Public Works Airport Director
H:\Private\Clerk Typist\Aa01\TPW&T 11\REPORT - ACC Holding 225 Lease 440th.doc