- Asking someone else to build a first class General/Corporate Aviation facility on a 4.5 acre parcel owned by ORH
- Proposer does not own property but pays a ground lease of approximately 48,000 per year for 20 years, with an option to renew the lease for 10 years
- In addition to the rent, the successful proposer will have to pay a portion of their collected parking fees and fuel flowage fees to the City of Worcester not to mention of portion of labor, parts and restaurant sales
- During course of the lease any sub-letting of the successful proposer needs to be approved by the airport commission
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
4 comments:
I have to agree, it looks like city is asking for quite a bit here...but...wouldn't it be nice if ORH had significant general/corporate aviation business to begin with that they could hand over to the winning bidder.
Would you build a McDonalds's in East Overshoe Mass. (pop. 217) on a 20 yr lease with a 10 yr option with no real customer base???
Maybe they will get someone to step up to the plate...but if it does not happen, it just goes to show (AGAIN) you how this City is has alot to learn re: how business has to operate. Businesses cannot jsut raise taxes or call up beacon hHIll or capitol Hill everytime they need money.
Jahn:
My point exactly. Maybe if there was a more established general/corporate aviation business then the risk would be worth it.
To ask a a potential investor to pony up what imagine would be millions of dollars, build a facility, pay 48K per year in lease payments, share revenues and then also have to get the blessing from the airport commission on all potential tenants seems like a stretch. Then to top it off lease is only for 20 years with one option to renew for 10 years.
In the end we will see.
Maybe we should call this the "trailer parking" of ORH.
You can own/build all the structures you want but we get to keep the land.
And some of the "tenants" only stay for 9 months and then leave for reasons that are still not clear.
Two differences.
1) A trailer costs a hell of alot less then a Corporate/General Aviation facility.
2) At a trailer park, if you are not happy with the ground lease, you can hitch up your trailer and leave.
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