After a protracted negotiation process, Lynchburg City Council is set to consider and potentially authorize a long-term lease agreement with Aviation Resources Inc., a fixed-base operator at Lynchburg Regional Airport.
Fixed-base operators provide fueling and other aeronautic services. Those services at Lynchburg Regional Airport previously were provided by two FBOs, Freedom Aviation and Virginia Aviation.
In 2014, Freedom Aviation LLC purchased Virginia Aviation. Virginia Aviation’s agreement with the city did not allow the lease to be sold or transferred to another party, and a provision stated the lease would be terminated if Virginia Aviation was sold.
The Lynchburg Regional Airport Commission recommended the city operate its own limited FBO, but City Council voted in February to allow the negotiation for a long-term lease with Freedom Aviation.
All three entities are related; Aviation Resources is doing business as Virginia Aviation, and Virginia Aviation is owned by Freedom Aviation, Airport Director Mark Courtney explained in an interview. Freedom Aviation is a subsidiary of Liberty University.
The final draft lease agreement to be presented to City Council on Tuesday will be for a term of three years with the option to renew for terms of five years. Aviation Resources will pay the city nearly $17,000 a month to rent facilities at the airport, but the agreement states rent may be lowered if Aviation Resources’ financial statements show no net profit. Rent may not be lowered below $11,361 per month, the draft lease agreement states.
Aviation Resources may not be able to “assign, sell or transfer,” the lease without the city’s approval, although there is the possibility of subleases under specified conditions.
At the Tuesday meeting, City Council also will consider an amendment to a franchise agreement with Freedom Aviation LLC, which formerly went by the name Falwell Aviation Inc., that would remove a restriction prohibiting the company from performing fueling of commercial and military aircraft.
City Council will meet Tuesday at 7:30 p.m. in City Hall.
Source: http://www.newsadvance.com
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