The Town of Addison (“Town”) and Mercury Air Center – Addison, Inc. d/b/a Atlantic Aviation FBO (“Atlantic”) executed a ground lease dated August 11, 2020, which has a Base Term of seven years. The ground lease provides that Atlantic may qualify and become eligible for three lease term extensions as long as it meets certain requirements set forth in the ground lease, including making the capital repairs and improvements described below at or above the following Costs of Construction:
| Terms |
Cost of Construction |
Years Extended |
| Base Term |
N/A |
Primary Term - 7 yrs. |
| Extended Term #1 |
$6,000,000 |
+13-years |
| Extended Term #2 |
$5,500,000 |
+15-yesrs |
| Extended Term #3 |
$2,500,000 |
+5-years |
| Total |
$14,000,000 |
40-Years |
Note: Statutory limit for lease terms is 40-years
Extended Term #1:
• Demolish building improvements at 4451 Glenn Curtiss Drive
• Construct larger jet hangar
Extended Term #2:
• Renovate FBO terminal building
• Repair and/or replace 203,000 square feet of aircraft apron
Extended Term #3:
• Demolish building improvements at 4530 and 4532 Glenn Curtiss Drive
• Renovate Hangar #3 at 4453 Glenn Curtiss Drive
• Construct new vehicle off-street parking in support of FBO operations
Due to some accelerated deterioration of Atlantic’s aircraft apron and Atlantic’s desire to complete FBO terminal renovations sooner than originally planned, Atlantic is requesting that the ground lease be amended to allow the FBO terminal renovations and the aircraft apron repairs and replacement (currently required under Extended Term #2) to be completed prior to the demolition of the building improvements at 4451 Glenn Curtiss Drive and the construction of the larger jet hangar (currently required under Extended Term #1). All other terms and conditions of the ground lease remain the same.
Atlantic believes the proposed modifications to the ground lease will allow Atlantic to be more competitive at Addison Airport and will better serve its customer base. The order in which construction of the building improvements is performed should not affect airport operations and there appears to be no monetary impact on the Town. Therefore, Airport Management is in support of amending the ground lease as proposed by Atlantic.
The city attorney has reviewed the First Amendment to Ground Lease and approves it to form for the Town’s purposes.
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