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TO: Mayor Richard C. Irvin
FROM: Steve Andras, P.E., Interim Airport Manager
DATE: February 6, 2019
SUBJECT:
An Ordinance Authorizing the Execution of a Land Lease Agreement for real estate at the Aurora Municipal Airport between the City of Aurora and Highgate Aviation, Inc.1929 Annettes Circle, Sugar Grove, IL 60554.
PURPOSE:
To obtain City Council approval of a termination of an existing land lease and the approval of a new land lease at the Aurora Municipal Airport located at 43W518 U.S Route 30.
BACKGROUND:
This hangar is currently owned by BNB Limited Liability Company and is being sold to Highgate Aviation, Inc.
The buyer intends to house their two aircraft in this hangar. They do not intend to operate any business at this location.
DISCUSSION:
In accordance with our Federal Grant Assurances, we are required to treat all tenants and businesses uniformly and fairly.
The proposed lease rate of $0.43235 per square foot is consistent with the most recent Council-approved land lease with ALB Properties approved under ordinance O18-087. This rate will increase by 3.0% per year beginning December 1, 2019.
IMPACT STATEMENT:
This agreement will have no negative impact to the City and will occupy an otherwise empty privately owned hangar.
RECOMMENDATIONS:
Please forward this item to the Finance Committee for their review and recommendation.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Authorizing the Termination of an Existing Land Lease with BNB Limited Liability Company and the Execution of a New Lease of Real Estate Agreement between the City of Aurora and Highgate Aviation, Inc. for Lease of Real Estate at the Aurora Municipal Airport.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora owns and operates the Aurora Municipal Airport; and
WHEREAS, BNB Limited Liability Company currently owns the hangar located at 43W518 U.S. Route 30 Sugar Grove, IL 60554; and
WHEREAS, BNB Limited Liability Company desires to terminate their lease agreement with the City of Aurora and sell this hangar to Highgate Aviation, Inc. 1929 Annettes Circle Sugar Grove, IL 60554; and
WHEREAS, Highgate Aviation, Inc. desires to enter into a Lease of Real Estate Agreement with the City of Aurora for property located at the Aurora Municipal Airport.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That the Mayor and City Clerk are hereby authorized to execute the attached Lease Termination and General Release Agreement between the City of Aurora and BNB Limited Liability Company which document is attached hereto and fully incorporated herein as Exhibit "D".
Section Two: That the Mayor and City Clerk are hereby authorized to execute the attached Lease of Real Estate at the Aurora Municipal Airport Agreement between the City of Aurora and Highgate Aviation, Inc. which document is attached hereto and fully incorporated herein as Exhibit "A".
Section Three: That this ordinance shall be in full force and effect, and shall be controlling, upon its passage, approval and publication as provided by law.
Section Four: That all ordinances or parts thereof in conflict herewith are hereby repealed to the extent of any such conflict.
Section Five: That any section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining section or provisions which shall remain in full force and effect thereafter.