The Port of Olympia Commission approved a ground lease for a 1.44-acre airport property at Olympia Regional Airport with SpanaFac LLC during its meeting on Monday, March 13.
The commission also approved the early termination of the lease for the current lessee of the property, Glacier Aviation Inc., which intends to sell the building to SpanaFac, a company related to SpanaFlight, a fixed-wing flight training company that occupies the building.
Joy Johnston from the Port’s communications team told The JOLT that SpanaFac would sublease the building to SpanaFlight Aviation. Airport Senior Manager Warren Hendrickson also told The JOLT that SpanaFac and SpanaFlight are different entities under the same ownership. SpanaFac owns the assets and facilities that SpanaFlight uses for flight training, according to Hendrickson.
As part of its obligations under the new lease, SpanaFac agreed to specific improvements to the building and surrounding land.
The lease runs for 35 years, ending on February 28, 2058, with SpanaFac having the option to extend the agreement for 15 years. The lease rate starts at $1,471.80 monthly and increases over the years.
Hendrickson noted that due to SpanaFac agreeing to invest in the property, the Port agreed to defer a portion of the cost of the rent until the seventh year. At that time, the company has agreed to pay a lump sum amounting to $22,537.34. The agreement also mentions that starting in the 10th year of the lease, the rent will increase 7.5% every three years until the end of the agreement.
Glacier Aviation chose to end its own fixed-wing flight school by selling it to SpanaFlight. Glacier continues its ground leases with the Port for several other facilities at Olympia Regional Airport, including a helicopter flight training school and a fixed base operator business that provides aircraft fuel and services.
Editor’s Note: A previous story mischaracterized the reason that the Port ended Glacier’s lease and issued a new lease to SpanaFac. We regret our error.
No comments on this item Please log in to comment by clicking here