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TO: Mayor and City Council
FROM: The Mayor's Office
The Law Department
Special Counsel, Klein, Thorpe & Jenkins, LTD.
DATE: December 29, 2021
SUBJECT:
Consideration and approval of a proposed new lease for Fixed Based Operator ("FBO") Carver Aero, LLC. ("Carver"), that has assumed the prior lease for premises at the Airport from Lumanair Aviation Services, Inc. ("Lumanair").
PURPOSE:
This new lease requires Carver to perform significantly greater infrastructure improvements than required under the present lease. The City will benefit from gaining significant upgrades to this FBO facility, while attracting future additional development at the Airport.
BACKGROUND:
The Council approved a consent to assign the former Lumanair lease to Carver in on July 27, 2021 via Resolution 21-0564. Since that time, outside counsel has been negotiating the terms of a new lease with Carver, as required by a term of the assignment. The parties have agreed on a total new infrastructure investment by Carver of $10,000,000, along with a specific timeline to make these improvements.
DISCUSSION:
Carver's investment in the Airport will include significant upgrades to the former Lumanair FBO site, including the construction of an above-ground fuel storage facility, updated hangar and lobby space and refreshed exterior appearances. Carver has committed to making these significant investments in its leasehold in exchange for the abatement of ground rent for the underlying property on which its buildings are located. This arrangement is similar to the lease structure used to stimulate development at the Joliet Air Center ("JA") leasehold. Carver is also required to pay additional rent and fuel flowage fees, as the City requires from JA.
IMPACT STATEMENT:
The execution of a new lease for the Carver leasehold will aid in continuing Carver's commitment to redevelop the former Lumanair facility with a more modern and attractive FBO facility at the Airport. This new lease will allow...
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