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A resolution to approve the First Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Nashville Airport Authority for use of the property commonly known as the John C. Tune Airport for the development and construction of an aircraft hangar. (Proposal No. 2024M-028AG-001).
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WHEREAS, The Metropolitan Government of Nashville and Davidson County (“Metro”) and the Metropolitan Nashville Airport Authority entered into a lease agreement approved by Resolution RS2022-1915 whereby Metro leases 0.84 acres or 36,624 square feet of unimproved land; and,
WHEREAS, Metro and the Metropolitan Nashville Airport Authority desire to enter into an agreement to develop and construct an aircraft hangar and a lease for the storage of aircraft, aeronautical equipment, and other related materials; and,
WHEREAS, the Lease approved by Resolution RS2022-1915 contemplates the payment of Supplemental Rent by Tenant equal to the cost of design and construction for the improvements divided by the term of the lease, in addition to the base rental amount approved by RS2022-1915; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this First Amendment to the Lease Agreement be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the First Amendment to the Lease Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Nashville Airport Authority, a copy of which is attached hereto and incorporated herein, is hereby approved and the Metropolitan Mayor is authorized to execute it on behalf of the Metropolitan Government.
Section 2. This resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves the first amendment to a lease agreement between the Metropolitan Government (“Metro”) and the Metropolitan Nashville Airport Authority (“MNAA”) previously approved by Resolution No. RS2022-1915. The agreement allowed Metro to lease .84 acres of unimproved land to construct an aircraft hangar and ancillary facilities at the John C. Tune Airport.
The amendment under consideration sets the supplemental rent for the property at $66,746.54 per month starting July 1, 2024. The amendment also provides for the installation of a domestic water submeter and the charging for any water usage. Lastly, the amendment grants Metro an access easement in, to, and across the drainage culvert in between Tune Airport Drive and the rented parcel for the purpose of ingress and egress to and from the property.
Fiscal Note: This amendment will change the supplemental rent from the cost of the design and construction for the improvements divided by the term of the lease in addition to base rent to supplemental rent of $66,746.54 starting July 1, 2024 through the end of the initial term. Metro will also pay for water usage as measured by the domestic water submeter installed to measure water consumption.