As the expansion of Aircraft and Commercial Enterprises (owned by Aero-Plains LLC) nears completion, a shift in the current business environment has caused the company to request changes to its agreement with the city.
In a note to city staff, owner Mike Helmer said the current economic environment is not conducive to the company’s anticipated expansion. With this in mind, the company requested that the previous sales agreement be amended to allow the lease of its new building. The Derby Community Development Advisory Board recommended approval of the changes on 11 November. 9.
The West End Business Park land was purchased by Aircraft and Commercial Enterprises (ACE) for a 2019 expansion plan. The sale agreement with the city required ace to construct a 7,500 sq. ft. building upon purchasing the lot, while also requiring the buyer to operate (not lease) an industrial/commercial enterprise on the property for at least five years.
The agreement also included a provision requiring monthly payments of $1,064.65 during the five-year period in which ACE failed to meet the terms of the agreement, should ACE fail to comply.
Construction on the ACE facility expansion began in February 2022 and will be completed soon, triggering the latest request.
Development manager Marcia Hartman said other terms and conditions of the original sales agreement will not change.
“The only thing that’s changed in the agreement is that we’ll allow them to lease the agreement without doing that. [penalty] Pay every month,” Hartman said.
Additionally, the amendment shifts property tax payment requirements to tenants of buildings. It will also require any proposed tenants to obtain city approval and comply with any city zoning or other regulations.
When asked for further comment, Hartman noted that the revised agreement would not return to CDAB following the city’s actions. When asked if there were any indications of potential tenants, Hartman noted that the ownership was not stated.
The project will now go to Derby City Council for a final decision after an advisory committee recommended approval of the revised agreement.