City of Fernandina Beach extends invitation to McGill Aviation for proposal

Submitted by Tammi Bach

Attorney for the City of Fernandina Beach

October 22, 2015 10:33 a.m.

Sean P. McGill

McGill Aviation Corporation

650 Airport Road

Fernandina Beach, FL 32034

RE: Invitation for FBO Ground Lease Proposal

Dear Sean:

As you know, Eight Flags Aviation, LLC ("Eight Flags") was awarded RFP 2015-101.2, and the City plans to construct a new Welcome Center by 2018. The City Commission approved a ground lease agreement with Eight Flags Aviation on October 20, 2015 which in 201 8 will include some of the area that McGill Aviation now leases from the City. The City Commission has directed me to send McGill Aviation this letter formally inviting McGill Aviation to submit a proposal to the City for a new ground lease agreement and provision of FBO services at an available location at the Fernandina Beach Municipal Airport in the north and/or east areas.

The City understands that McGill Aviation has a current, valid ground lease agreement that will expire in March 2018. The purpose of this letter is to invite McGill Aviation to begin negotiations for a new ground lease agreement that could become effective upon expiration of your current ground lease or sooner.

The City is able and willing to negotiate a new ground lease rental rate with McGill Aviation including possible rent credits that account for capital improvements investments and site preparation under a new ground lease agreement. We look forward to continuing our relationship with McGill Aviation as an FBO on the airfield. Please do not hesitate to contact me with any questions.

Sincerely,

Tammi E. Bach City Attorney

October 21, 2015