Item No: 5E.
Meeting Date: January 14, 2013
From: Doug Drymon, Deputy City Manager
Subject: Resolution authorizing issuance of a Right of First Refusal to Wipaire, Inc.
of South St. Paul, Minnesota for vacant property located at Leesburg International Airport.
Staff recommends the City Commission direct the City Attorney and City staff to proceed with drafting a Right of First Refusal for execution with Wipaire, Inc. for a 5-acre parcel of property at Leesburg International Airport which is delineated as Parcel “B” on the attached Exhibit.
Wipaire, Inc. was recently granted a lease by the City Commission for one of the City’s Corporate Block Hangars at Leesburg International Airport. The company intends for this hangar to serve as a temporary location for its operations over the next 12-18 months while a suitable site is secured on the airfield for construction of a 20,000 sqf hanger together with 12,000+ sqf of adjoining office and shop space to be used as the company’s permanent Southeastern US Service Center.
As outlined in the Agenda Memo which accompanied the Corporate Block Hangar lease, company officials have expressed interest in several vacant parcels of property at Leesburg International Airport (KLEE) for the location of Wipaire’s future Service Center facility, one of which is situated off the southwestern end of College Drive. To help the company keep its development options open while it moves ahead with starting up limited operations at KLEE, company officials have requested a Right of First Refusal from the City for the property delineated as Parcel “B” on the attached Exhibit. In a letter dated November 26, 2012 (see attached) City Manager Jay Evans outlined to the company the terms under which City staff would be willing to recommend to the City Commission that approval for a Right of First Refusal be given. Wipaire officials have indicated they are amenable to the terms outlined in Mr. Evan’s letter, including the suggested two year time period in which a decision by the company would need to be made.
Construction of Wipaire’s permanent Service Center facility will enable the company to employ 60+ people and offer a complete range of aircraft repair, maintenance and painting services plus float installation at KLEE. Wipaire also intends to service aircraft for the Federal Government under an existing contract at this facility.
1. Direct the City Attorney and City staff to draft a Right of First Refusal for execution with Wipaire, Inc.
2. Such alternative action as the Commission may deem appropriate
Wipaire officials have indicated an operation of the size the company intends to construct at KLEE could at full staffing employ 60 or more highly skilled technicians at an average wage of $25.00 per hour plus benefits (the staffing at the company’s temporary facility is expected to be 10 people). The company has estimated that their planned Service Center facility will cost between $2.0 million and $2.5 million to construct and outfit. If the specified 5 acre tract is chosen for Wipaire’s permanent Service Center location, the City can also expect to receive monthly ground rent from the company, the amount of which will depend on the eventual lease rate that is negotiated between the City and Wipaire.
Department: _City Manager__ __
Prepared by: ______________________
Attachments: Yes_X__ No ______
Advertised: ____Not Required ______
Attorney Review : Yes_X No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ______DD__________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA APPROVING ISSUANCE OF A RIGHT OF FIRST REFUSAL TO WIPAIRE, INC. OF SOUTH ST. PAUL, MINNESOTA FOR VACANT PROPERTY LOCATED AT LEESBURG INTERNATIONAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Attorney and City staff are hereby authorized to draft a Right of First Refusal for execution with Wipaire, Inc. whose address is 1700 Henry Avenue, South St Paul, Minnesota 55075, for a vacant five acre parcel located within the legal boundaries of the Leesburg International Airport.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _14th____ day of _January________ 2013.