Loading...
HomeMy WebLinkAbout~Master - Amendment to Vantage Corporation Ground Lease RESOLUTION NO.03-345 RESOLUTION APPROVING AMENDMENT TO VANTAGE CORPORATION GROUND LEASE FOR THE CITY OF AMES WHEREAS,six years ago,the City entered into an agreement with Vantage Enterprises,LLC,to allow an aircraft manufacturing facility to be built on City land at the Ames Municipal Airport; and, WHEREAS, Vantage Enterprises was a group comprised originally of local investors who formed to provide a home for a new aircraft enterprise in Ames,the VisionAire Corporation; and, WHEREAS,the buildings were privately owned by Vantage that leased the underlying land from the City and rented the building space to VisionAire Corporation; and, WHEREAS,the lease agreement called for Vantage LLC to rent 12.75 acres from the City at a below- market rate of$100 per acre for the first five years of the agreement,then after that,the rent would increase to a market rate specified in the agreement; and, WHEREAS,in accordance with the agreement,Vantage LLC made the first market rate lease payment last year; and, WHEREAS, the agreement also included a provision in the event that there was no tenant renting the facility and was unoccupied for any continuous period of more than 30 days during the sixth through the 10`h year, the rent would be reduced to$100 per acre of land then subject to the lease;and, WHEREAS,in late June 2003,Wayne Moore,representing the owners,notified the City that the principle building was unoccupied and asserted that the annual rent reverted to$100 per acre rather than pay approximately $36,000 market rate rental for 2003/04; and, WHEREAS,three other issues need to be clarified as both City and Vantage representatives have found the agreement difficult to interpret. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the amendment to the ground lease with Vantage Enterprises,LLC,is hereby approved thereby reducing the amount currently owed the City from$35,458 in advance for the year to$106.25 beginning July 1,2003,and continuing for every month the principle building is without a tenant. ADOPTED THIS 26 day of August,2003. Lod& Diane R.Voss, City Clerk ed e esco,Mayor Introduced by: Mahayni Seconded by: Wirth Voting aye: Hoffman,Mahayni,Vegge,Wirth Voting nay: None Absent: Goodhue Abstaining: Cross Resolution declared adopted and signed by the Mayor this 26'of August,2003.