Agenda Package 4-22-13 Spec. Called Meeting

Home Browse Search

LEE COUNTY Committed Today for a Better Tomorrow MEMORANDUM TO: Lee County Board of Commissioners FROM: John Crumpton, County Manager DATE: April 22, 2013 RE: NC Forestry Service Project Hanger Purchase As we have discussed under my Manager's Report since June (not every month), the Airport Authority has been working on a project to locate the NC Forestry Service to the Raleigh Executive Jetport at Sanford /Lee County. The Forestry Service will be locating at least 3 airplanes and 2 helicopters to the Airport. In addition, this site will be the maintenance location for the Forestry's Service 25 airplanes across the state. In addition to maintenance and flight personnel, the Forestry Service will be locating administrative /office personnel to the facility as well. In all, up to 12 positions may be located to the airport. The Authority will also be the sole fuel provider to the Forestry Service from this location. With the number of flight operation, we expect their fuel purchases to be significant. Once the hanger is purchased, the Authority will begin the process of designing, and constructing the renovations and office space that is required under the lease terms. As was previously discussed, the Airport Authority wishes to borrow the total cost of purchase and construction from the City and County for a term of less than 10 months. Once the facility is complete, Central Electric Membership Corporation will provide the long -term financing for the facility. The Corporation has agreed to make a loan of $800,000 to the Authority, at zero percent interest, for 10 years. Due to the size of construction and permanent loans, both packages will need to be approved by the Local Government Commission. The Lease with the Forestry Service has been approved by the Council of State. The State now uses State Facilities to finalize the written lease which is almost complete. The lease terms are for 30 years with a payment of $125,000 for the hanger and office space, plus up to 6 T- Hangers if needed. Every 3 years, the lease payment is adjusted by