20250312-007 Primeflight RCA — original pdf

Backup

City of Austin Recommendation for Action File #: 25-0119, Agenda Item #: 5. 3/27/2025 Posting Language Authorize negotiation and execution of a lease with Global Aviation Services, LLC d/b/a Primeflight GSE Maintenance for certain premises consisting of approximately 2,458 square feet of building space and related improvements for its aircraft maintenance operations at Austin-Bergstrom International Airport, for a term of five years, with a renewal option for an additional one-year term. Funding: This item is projected to result in approximately $21,508 in additional revenue for the Fiscal Year 2024-2025 Aviation Department’s Operating Budget. Lead Department Aviation Fiscal Note This item is projected to result in approximately $21,508 in additional revenue for the Fiscal Year 2024-2025 Aviation Department’s Operating Budget. For More Information: Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com <mailto:tracy.thompson@flyaustin.com>, 512-530-5023. Council Committee, Boards and Commission Action: To be reviewed by the Austin Airport Advisory Commission on March 12, 2025. Additional Backup Information: The Department of Aviation seeks to lease Suite 300 of its air cargoport facility located at 9401 Cargo Avenue., to Global Aviation Services, LLC d/b/a Primeflight GSE Maintenance (Primeflight). Primeflight is currently authorized to use this space under a temporary license agreement for the support of its operations and services provided at Austin-Bergstrom International Airport and desires to secure leased premises for a longer term. Under the proposed terms for the new lease, Primeflight would lease for its exclusive use, approximately 2,458 square feet of building space applying the current AUS-established cargo building base rental rate of $14.00 per square foot per annum. This will generate an estimated annual base rent total of $34,412. In addition to this base rate, there will be an O&M recovery fee calculated as 25% of the base rent total, which is $8,603. The base rent is subject to escalation annually based on the higher of CPI or 3%. The proposed lease will generate an estimated $228,370 during the five-year term, or $278,239 if a one-year option renewal is exercised. City of Austin Page 1 of 1 Printed on 3/7/2025 powered by Legistar™