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TO: Mayor Thomas J. Weisner
FROM: Steve Andras, P.E., Acting Airport Manager
DATE: December 26, 2014
SUBJECT:
A Resolution Authorizing a One-Year Extension to a Direct Aviation Operating Agreement between the City of Aurora and Executive Flight Management (EFM).
PURPOSE:
To obtain City Council approval of an extension for the Direct Aviation Operating Agreement between the City of Aurora and Executive Flight Management.
BACKGROUND:
EFM has operated at the Aurora Municipal Airport since December of 2001. The company manages, operates and repairs corporate aircraft and is a tenant in a large hangar on the field. Their current 2-year operating agreement expires December 31, 2014.
DISCUSSION:
EFM provides aviation services to the airport and to the business community in the Chicago Metropolitan area. They have been responsible tenants on the airfield and consistent with their payments to the City of Aurora. EFM desires to extend their agreement until December 31, 2015.
In 2014 the City of Aurora commissioned a Rate Study by Sikich for the Aurora Municipal Airport. A draft of the study suggests several options to increase the viability of the airport. Only one suggested change would affect a direct aviation operating agreement. This would be an increase in Additional Rent (from 1.5% of gross revenue to possibly 3%).
Due to its short duration, a one-year extension to the EFM direct aviation operating agreement would not result in a significant loss of revenue should the City revise its rate structure.
IMPACT STATEMENT:
The extension of this agreement will have no negative impacts.
RECOMMENDATIONS:
I recommend that the City Council approve a one-year extension of the EFM Direct Aviation Operating Agreement with the City of Aurora.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE _________...
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