TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
Kelly Olivera, Assistant City Manager
FROM: Kecia N. Parker, NCCP, Real Estate Manager
Deontae K. Watson, MBA, A.A.E., Interim Airport Director
DATE: May 28, 2024
RE:
Title
Approval of Lease and Lease Amendment with Enterprise Leasing Company-Southeast, LLC dba National/Alamo at the Fayetteville Regional Airport
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal I - Safe and Secure Community
Goal IV - Desirable Place to Live, Work, and Recreate
Executive Summary:
The City of Fayetteville and Enterprise Leasing Company-Southeast, LLC, dba National/Alamo entered a Rental Car Lease and Concession Agreement on July 1, 2022, which included the service area located at 2885 Hangar Road and the Enterprise Service Annex located at 3154 Doc Bennett Road. Enterprise Leasing Company-Southeast, LLC, dba National/Alamo desires to separate these areas from the current lease and enter into a new lease for the service areas. In exchange for the separation, they intend to invest approximately $800,000.00 in a scope of work that includes improvements to the service areas which will be agreed upon by both parties. The current rent of $3,798.11 will remain the same.
Background:
The City of Fayetteville and Enterprise Leasing Company-Southeast, LLC, dba National/Alamo entered a Rental Car Lease and Concession Agreement on July 1, 2022, which included the service area located at 2885 Hangar Road and the Enterprise Service Annex located at 3154 Doc Bennett Road. Enterprise Leasing Company-Southeast, LLC dba National/Alamo has requested an amendment to the current lease removing the service areas and creating a new lease agreement for the service areas. In exchange for the amendment and new lease agreement, they have agreed to invest approximately $800,000.00 to improve the service areas. The proposed improvements include repaving and restriping the entire parking lot, reconfiguring lot entrance and flow, installing a new security gate and entrance with tiger teeth system at the new entrance and current entrance/exit, implementing a new surveillance CCTV and monitoring system, adding a new fuel island with vacuum system and above ground storage tank (AST) - removing current systems, replacing all flooring finishes in the building, upgrading all doors in the building to commercial doors and hardware, painting the exterior of the building, remodeling the bathrooms and improving the ADA accessibility, replacing ceiling grid/tiles as necessary, and installing modern LED lighting in the interior and exterior of the building.
The proposed new lease agreement would run simultaneously with the current agreement for five years with an additional five-year renewal option. The proposed improvements will take approximately nine months to complete. Upon completion, the proposed term would increase to 10 years replacing and superseding the original term. This will allow them time to recoup the investment made and will benefit the City as it will provide significant improvements to the City owned property. The current rent of $3,798.11 per month will remain the same.
The Airport Commission recommends the amendment to the current lease and recommends creating a separate lease for the use of the service areas. N.C.G.S. § 63-53 permits the City to enter into lease agreements beyond 10 years for Airport property.
Issues/Analysis:
None
Budget Impact:
All revenues will remain with the Airport Operating Fund and there will be no impact to the City of Fayetteville General Fund.
Options:
• Approve the proposed Lease Amendment and Lease Agreement and allow the City Manager to execute the documents on behalf of the City.
• Do not approve the proposed Lease Amendment and Lease Agreement.
Recommended Action:
Staff recommends City Council approve the proposed Lease Amendment and Lease Agreement and allow the City Manager to execute the document on behalf of the City.
Attachments:
Lease Agreement
Lease Amendment
Resolution