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HomeMy WebLinkAboutC23-333 MOU_EC Maintenance Service CenterMEMORANDUM OF UNDERSTANDING REGARDING GROUND LEASE RENTAL RATES FOR THE EAGLE COUNTY MAINTENANCE SERVICE CENTER THIS MEMORANDUM OF UNDERSTANDING (“MOU”), effective as of January 1, 2024, memorializes Eagle County’s ground-lease rental rate and allocation of rates among users of the land at the Eagle County Airport property where the Eagle County Maintenance Service Center is located (“MSC”). WHEREAS, Eagle County Government (the “County”) owns, controls and operates the land and improvements known as the Eagle County Regional Airport (“Airport”); and WHEREAS, land surrounding the Airport was also acquired to maintain a buffer between airfield and associated activities and private development in the community (“Airport Buffer Land”); and WHEREAS, the County determined in needed office, operations and storage facilities and that the buffer areas of the Airport Buffer Land would be a good location for construction of the MSC for this purpose; and WHEREAS, the Eagle Lease Financing Corporation (“Financing Corporation”) was a non-profit corporation organized for the benefit of Eagle County for purpose of financing the construction of the MSC through the issuance of certificates of participation, with the MSC securing the indebtedness; and WHEREAS, Eagle County and the Financing Corporation entered into a Ground Lease on June 1, 1999 (the “Original Agreement”), which allows the Leasing Corporation to construct and operate of the MSC on Airport Buffer Land for county purposes, and set the base rental rate for occupation and use of the MSC by other county departments; and WHEREAS, the indebtedness and certificates of purchase have been satisfied, and therefore, title to all improvements known as the Maintenance Service Center (“MSC”) have, by operation of law and the terms of the Indenture and Original Agreement, vested exclusively in the County and the Original Agreement expired by its own terms; and WHEREAS, the MSC premises is shown in the aerial site map attached hereto and incorporated herein as Exhibit A, which expanded further onto Airport Buffer Land since execution of the Original Agreement to accommodate additional office, operations and storage facilities connected to and made part of the MSC and the 225,453-foot expansion area is shown in blue on Exhibit A; and WHEREAS, the County wishes by this MOU to reestablish market-based ground-lease rental rates for the entirety of the MSC, to be paid on an allocated square foot basis by its various users. DocuSign Envelope ID: 320800DC-9967-49F6-A802-54E0713500DC NOW, THEREFORE, in consideration of the foregoing, the following memorializes the County’s rental rate and allocation of ground lease rental payment obligations for non-Airport use of the MSC: 1. The total square footage for the entire MSC is 1,096,653 square feet. 2. Beginning January 1, 2024, the area base rent payable to the Airport, shall be thirty-five cents ($.35) per square foot per year, or the total annual base rent of $383,828.55 per year. Beginning January 1, 2025, and each year thereafter, the rental rate established here shall be increased by 3%. 3. Departmental allocation of rental payment obligations shall be determined based on square footage estimates determined by the Eagle County Facilities Department. For the year beginning January 1, 2024, such allocations shall be made in accordance with the “Departmental Rent Allocation” spreadsheet attached hereto and incorporated herein as Exhibit B. The Eagle County Facilities Department may, upon approval of the Eagle County Manager’s Office, revise the Departmental Rent Allocation spreadsheet based on operational needs of the County. Rental payments, in accordance with the most current approved version of the Departmental Rent Allocation spreadsheet, shall be made annually by interdepartmental transfer facilitated through and in accordance with the policies of the Eagle County Finance Department. 4. Any portion of the MSC authorized for use by a non-county person or entity must be memorialized by a written lease or license agreement duly authorized by the Board of County Commissioners. Revisions to this MOU will be in writing and duly executed by managers or directors of the departments listed below. [Remainder of page left intentionally blank] DocuSign Envelope ID: 320800DC-9967-49F6-A802-54E0713500DC Reviewed and Approved as follows: Eagle County Airport By: _______________ David Reid, Director Date: Eagle County Road and Bridge By: _______________ John Harris, Director Date: ECO Transit By: ___________________ Larry Tenenholz, Acting Director Date: Eagle County Manager’s Office By: ________________ Jill Klosterman, Chief Financial Officer Date: Eagle County Fleet Services By: __________________ Dustin Ehlert, Fleet Manager Date: Open Space & Natural Resources By: _____________________ Marcia Gilles, Director Date: Eagle County Facilities Department By: ________________ Jesse Meryhew, Director Date: DocuSign Envelope ID: 320800DC-9967-49F6-A802-54E0713500DC 10/10/2023 10/19/2023 10/10/2023 10/11/2023 10/10/2023 10/11/2023 10/11/2023 EXHIBIT A 225,453 871,200 DocuSign Envelope ID: 320800DC-9967-49F6-A802-54E0713500DC May 2023 Calculations Department Square Footage Total Square Footage Road & Bridge General ECO Fleet Open Space Natural Resources TOTAL 1,096,653.00 R&B-North Storage, Sand Storage and adjacent area 211,753 New Parcel R&B-North Storage, Sand Storage and adjacent area 1,547 Old Parcel R&B-Bldg F storage 9,860 R&B-Bldg G 13,500 R&B-Bldg B Parking Area 1,900 R&B - Bldg A office space 440 Bldg A,B,C Common share portion 1,887.50 Parking lot common share portion 174,267.00 Sub Total 415,154.50 FM-Bldg H and Surrounding Area 24,000 SO-Impound Lot 13,000 HHS-Storage Container 450 Common A,B,C Common share portion 1,887.50 Parking lot common share portion 174,267.00 Sub Total 213,604.50 ECO-Outside Storage Area 15,500 ECO-Bldg D 32,000 ECO-Vehicle and Bus Parking 5,700 Bldg A office 2,520 Bldg B office 2,180 Bldg C office 1,235 Common portion 1,887.50 Parking lot common share portion 174,267.00 Sub Total 235,289.50 . Fleet-Parking 1,900 Fleet-Bldg C Surrounding Area 14,000 Fleet-Gas Pumps 2,800 Fleet-Auction - new parcel 13,700 New Parcel Common share portion 1,887.50 Bldg C office 22,220 Parking lot common share portion 174,267.00 Sub Total 230,774.50 OS-Bldg E 1,500 OS-Chemical Storage Container 200 Bldg B office 130 1,830 MSC-B&C interior Common 3,100 MSC-A interior Common 4,450 Divided by 4 Total Common 7,550 1887.5 TOTAL Common Parking 697,068 Divided by 4 174,267.00 RENT ALLOCATION SPREADSHEET Effective: JANUARY 1, 2024 EXHIBIT B DocuSign Envelope ID: 320800DC-9967-49F6-A802-54E0713500DC