AGENDA CAPTION:
Title
Consider approval of Resolution 2023-19R, approving an Airport Facility Redevelopment Agreement for Commercial Use with US Aviation Group, LLC for the lease of airport premises with certain conditions; authorizing the City Manager, or her designee, to execute said agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: January 17, 2023
Department: Airport
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Background Information:
US Aviation Group, LLC, based in Denton, Texas, was the successful respondent for a Request for Proposals (RFP) titled Hangar Redevelopment at 2049 Airport Drive at the San Marcos Regional Airport.
US Aviation has been operating in Texas since 2006 and is now one of the largest flight academies in the country. In 2019, US Aviation began a Part 147 Airframe and Powerplant (A&P) training academy in Denton, receiving official certification from the Federal Aviation Administration in 2020. US Aviation desires to expand their A&P school into San Marcos. Within the first 18 months, US Aviation anticipates hiring nine (9) full time employees with an average salary of $65,000/year. Student enrollment is anticipated to reach full capacity within two years with an estimated 100-120 students.
In addition to working with the Department of Labor to enroll Job Corp students, US Aviation is currently on the Texas Workforce Commission’s Eligible Training Provider List (ETPL) making them eligible to receive Workforce Innovation and Opportunity Act (WIOA) grant funding for low-income individuals.
US Aviation will redevelopment the property in two phases with a minimum investment of $405,000 within two years. The primary term of the lease is 10 years with an initial monthly rent of $2,178.00 set to increase in two years to $5,378.00. Rent will increase 10% every five years and the total term of the lease with extensions is 35 years.
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Recommendation:
Staff recommends approval