In 2016, the Commission and the County (Chatham) began discussions and preliminary planning for a shared Emergency Operations Center (EOC) located within the northwest quadrant of the airport. The County desires to lease certain parcels of land at the Airport for construction and operation of the EOC, and related facilities and improvements on said parcel. Furthermore, the County will sublease a portion of the facility to the Commission for the purpose of housing the Airport’s Police Department and Airport Emergency Operations Center, and the Commission will reimburse the Lessee for the pro – rata capital costs of the subleased premises. In consideration of the construction of the EOC Facility, the Commission’s pro-rata share of the total capital costs of the EOC building is $8,529,055 based on the following formula per Section 5. Consideration for the Lease and Sublease. This amount may be more or less, depending on the final total costs of the EOC building. 

1. Total Capital Costs: Determine the total capital costs of the EOC Building, including the cost of professional fees and other “soft costs” allocated to the project in accordance with generally accepted principles: $41,650,000 (Estimate provided by Chatham County)
2. Subleased Area: Total Capital Costs x (subleased area sf / total building sf)

$41,650,000.00 x (10,555 SF / 83,387 SF) = $5,414,500

3. Common Area: Total Capital Costs x (Common Area SF / Total Building SF) x 20%

$41,650,000.00 x (32,286 SF / 83,387 SF) x 20% = $3,332,000

4. Aviation Fuel Tax:Both parties have agreed that the sales tax paid on Aviation Fuel received by the County from the State of Georgia shall be deducted from the sum of the Subleased Area and Common Area. Annual sales tax reports generated by the Georgia Department of Revenue (DOR) for FY2017 reporting period of July 1, 2016 to June 30, 2017, indicated Chatham County’s 3% local sales tax generated $652,335.30, of which one-third, is subject to fuel tax compliance policy. $217,445

To calculate the Commission’s payment to the County, the formula shall be the sum of b+c-d. The product so calculated shall be paid by the Commission to the County within thirty (30) days after the issuance of a Certificate of Occupancy for the EOC Building.

Approval

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