City of Millville, NJ Chapter 75 Airport Lease With Delaware River Bay Authority

[HISTORY: Adopted by the Board of Commissioners of the City of Millville 6-15-1999 by Ord. No. 25-1999. Amendments noted where applicable.]

WHEREAS, the City of Millville (the "City") owns and operates the Millville Municipal airport, together with certain facilities, property and equipment related thereto ("airport"), located upon premises known as Block 125, Lots 2, 5, 12, 17 on the City of Millville Tax Map; and

WHEREAS, the City wishes to cease its operation of the airport and therefore desires (i) to enter into a lease with the Delaware River and Bay Authority ("DRBA") of the premises comprising the airport, (ii) to dispose of all of its right, title and interest in certain personal property and equipment owned by it and used in conjunction with operation of the airport, and (iii) to grant certain rights in other assets of the City associated with the operation of the airport to the DRBA; and

WHEREAS, the DRBA desires (i) to enter into a contemplated lease of the premises comprising the airport, (ii) to purchase all of the City's right, title and interest in that certain personal property and equipment owned by it and used in conjunction with the airport, (iii) to acquire other rights of the City in those other assets associated with operation of the airport, and (iv) to thereafter operate, maintain and develop the airport until the termination of said lease; and

WHEREAS, representatives of the City and the DRBA have entered into negotiations for these purposes in order to reach such agreement, and the terms and conditions of such agreement are set forth in the Acquisition Agreement and Ground Lease which are on file in the office of the City Clerk; and

WHEREAS, the City has determined that the undertakings contemplated by the Acquisition Agreement and the Ground Lease are in the best interest of the City because they will, among other things (i) reimburse the City for certain prior capital expenditures in connection with the airport, (ii) relieve the City of ongoing airport operating and capital expenses, (iii) relieve the City of the need for future capital expenditures necessary to maintain the airport, (iv) ensure the continued operation and development of the airport, and (v) provide that any net revenues from the operation of the airport be dedicated to economic development initiatives and/or improvements at the airport for the benefit of the residents and taxpayers of the City; and

WHEREAS, the City has determined that the DRBA possesses the administrative expertise, financing capabilities and other resources to manage, supervise, strengthen and develop the economic potential of the airport, and that the DRBA is authorized to enter into this lease and to engage in such undertakings pursuant to its Compact (Public Law 87-678, 87th Congress, Public Law 101-565, 101st Congress) and certain companion statutes, including New Jersey Law 1989, c. 191; and

WHEREAS, the City has determined that the real property comprising the airport is no longer needed for its public use and that the lease of such real property to the DRBA may be undertaken by the City pursuant to New Jersey Law 1971, c. 199, as amended; and

WHEREAS, the City has determined that the personal property and equipment owned by it and used in conjunction with the airport to be conveyed hereunder is no longer needed for its public use and that such conveyance may be undertaken pursuant to New Jersey Law 1971, c. 198.

NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF MILLVILLE:

§ 75-1 Incorporation of prefatory material.

The above prefatory paragraphs of this ordinance are incorporated herein and made a part hereof.

§ 75-2 Authorization to execute agreement.

The Mayor and City Clerk are hereby authorized to execute the Acquisition Agreement and Ground Lease in accordance with the terms contained therein, together with such other instruments as may be necessary or desirable to effectuate the purpose thereof.

§ 75-3 Additional undertakings authorized.

The Mayor and those other representatives of the City as may be designated therefor are hereby authorized to engage in such additional undertakings as may be deemed necessary and appropriate in order to accomplish lease of the premises comprising the airport and the transfer of the airport and its operations to the DRBA, including, but not limited to, such undertakings as are specifically set forth in the Acquisition Agreement and Ground Lease, with all deliberate speed so that the residents and taxpayers of the City may obtain the benefits to be derived therefrom.