At the April 11 Council Meeting, the City Council approved a ground lease with AJC Holdings Group, LLC for a $20 million Fixed Base Operation (FBO) complex on approximately 16 acres of airport land fronting Addison Road across from Addison Circle. AJC Holdings Group, LLC is a Colorado limited liability company formed by and between McClurg Century Investments, a Colorado trust, and Denver-based Business Aviation Group, LLC. Phase I will include a 20,000 square foot terminal, a 30,300 square-foot hangar with attached office space for transient traffic, and another 30,300 square-foot executive hangar for based aircraft. The estimated construction value of the Phase I improvements, which will be located on 11 acres on the southernmost end of the site, is $12 million.
Phase II will occupy an additional five acres to be improved with two additional 25,000 square-foot executive hangars with office space with an estimated construction value of $8 million.
With the proposed AJC redevelopment, annual operating revenues for the same land area are projected to increase by as much as 50% (or $600,000 annually) over the first ten years of the ground lease term. Fuel flowage fees from public fueling operations will add an estimated $240,000 annually to airport revenue and the Town is projected to realize $50,000 annually in ad valorem property taxes based upon the construction value of the building improvements.
You can watch the Council discussion here.