Ocala Jet Trying To Land Airport Operator Lease

July 13--Ocala Jet Center has an option to buy the fixed-base operator lease at the Ocala International Airport from Landmark Aviation.

"We have asked Ocala Jet Center to submit a business plan as to their proposal," Deputy City Manager John Zobler said Friday.

Zobler said that Bill Houghton, general manager of Ocala Jet, which is owned by the Stavola family, informed the city of its pending purchase. Zobler said Landmark's executive vice president of operations, Ted Hamilton, confirmed the offer.

"Due to confidentiality, at this time we cannot discuss it," Houghton said on Thursday. "Nobody can discuss it right now. There will be upcoming public meetings."

Landmark's Hamilton could not be reached for comment.

"The assumption of that contract does require City Council approval," Zobler said.

Landmark has six years left on its lease with the city, which owns the airport. A fixed-base operator provides services such as fuel sales, aircraft maintenance and flight schools for general aviation aircraft.

Because the city gets a certain percentage of the money Landmark earns on selling fuel and renting space, it is interested in knowing what Ocala Jet would be offering the city should it assume the lease.

Zobler said the city also wants to know if Ocala Jet has plans to make capital improvements at the airport, and if it wants to extend the lease beyond the 6 { years.

If the lease is extended beyond the 6 { years, the city likely would not issue a "Request for Proposal," airport Manager Matthew Grow said. That would essentially eliminate the possibility of other interested parties submitting offers.

Although the Stavolas have extensive business experience, they have never operated an FBO, Grow said. But that is not bad if one has competent people, he added.

"You have to start sometime when you are breaking into the industry," Grow said.

The Landmark lease, which has changed hands over the years, is a 30-year lease due to expire in 2018.

Zobler said that staff has asked Ocala Jet to provide its business plan "sooner rather than later."

"They said we would be receiving it in the coming weeks," Zobler said.

The plan, when it is submitted, will be reviewed by city staff and the city's Airport Advisory Board before going to the City Council.

The city had put out an RFP last year for aviation and non-aviation projects to improve the airport. Three proposals were received. Landmark ranked first, Dunphy Properties ranked second and Ocala Jet was third. Staff recommended that Landmark and Dunphy combine resources and submit a joint proposal. Landmark then asked the city for an extended lease, but the company and the city could not reach agreement and negotiations ceased.

In September, the City Council rejected all the bids.

Then in January, Ocala Jet returned with a proposal to build a general aviation terminal and associated hangars on the east side of the airport and to provide fuel, maintenance and storage for larger airplanes. At that time, Houghton told the city that Ocala Jet would not want to provide all the services required under the city's minimum standards. Council directed city staff to reduce the standards, which Landmark was providing.

Since then, the City Council has changed the minimum standards to include a point system that allows FBO's to pick and choose what services they wish to offer as long as the weighted points assigned to each service total three.

In the meantime, the city obtained a $2 million grant, that requires a $2 million city match, to build a new terminal building. That match is dependent upon the American Fresh Farms' proposal to grow hydroponic tomatoes at the airport coming to fruition.

The city has to buy the airport land for the AFF project from the Federal Aviation Administration. It will do so with money borrowed from the Water and Sewer Department.

The money from the sale of the airport land must be used for airport projects, in this case the terminal building. The Water and Sewer Department will be reimbursed from electric usage and taxes paid by AFF.

Contact Susan Latham Carr at 352-867-4156 or [email protected].

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