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Aviation Ground Lease Agreement and Incentives Agreement With Flightpath Aviation Services, Inc., for Property Located 17330 Spring Hill Drive at Brooksville-Tampa Bay Regional Airport
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BRIEF OVERVIEW
Flightpath Aviation Services (FAS) is an aircraft maintenance, parts and service provider located at the Brooksville - Tampa Bay Regional Airport (BKV) since 2011. Their company currently occupies a 4,730sf county owned hangar with three full-time employees. FAS has been working with the Airport and Economic Development on expansion plans for several years and is poised to embark on a significant investment at BKV.
FAS intends to relocate to the northeast side of the airfield and construct two 10,000sf corporate hangars. Over the next three years they will increase their employment by 12 new full-time employees with an annual salary of at least $50,884.00 which is 115% of the Average Annual Wage for Hernando County.
In accordance with Hernando County Code Chapter 11.5 as an expanding targeted industry, FAS is eligible for incentives detailed in the Hernando County Targeted Industry Job Creation and Incentive Program. The Company has requested that, in lieu of the monetary payments, the Jobs Creation Grant be made by the County by transferring to it the title to the Hangar located on the 12.8 acres of land they propose to lease for this project. The hangar, constructed in 1979, was appraised in March of 2024 and deemed to have a market value of $20,000.00. Since that time, the hangar has sustained damage from Hurricane Milton.
FAS intends to renovate the hangar and incorporate the facility into their aircraft maintenance campus. Minimum capital investment is expected to be $3.26M.
Concurrent with this request for incentives, FAS is requesting approval of a ground lease encompassing 302,306 gross square feet (mol) with a term of thirty (30) years, and the option of two (2) ten (10) year additional extensions.
FINANCIAL IMPACT
Ground lease revenue will be recognized as follows:
Fund: 4311 - Airport/Industrial Park, Account: 3620051 - Lease - Ground/Aviation, in the minimum annual amount of $75,576.50.
LEGAL NOTE
The Board has authority to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended that the Board approve and authorize the Chairman’s signature on both the attached Aviation Ground Lease Agreement and Hernando County Incentives Agreement.