WILMINGTON — The Clinton County Port Authority leased one of its buildings to Santa Rosa Systems, Inc., a current tenant of more than one year, for three more years.
The building leased to SRS encompasses more than 145,000 square feet. The value of the lease increases over time from $2 per square foot in the first year to $2.75 later.
“Santa Rosa’s been a good tenant to have at the Wilmington Air Park,” said Kevin Carver, the port’s executive director. “Given the increase in space, they’re planning to expand their employee base approximately 60 individuals.”
SRS had previously leased 59,000 square feet in June 2014 and added more space over time. They will now lease the entire building for three years with three one-year extensions available.
SRS designs and makes material handling equipment and is a subsidiary of Material Handling Systems, which is based in Louisville, Ky.
All present board members — Larry Laake, Brent Probasco, David Hockaday, Richard Thompson and Brian Smith — voted for the lease. Bill Marine and Ed Kuehn were absent.
Related to the deal, the port approved $88,500 in maintenance, repairs and improvements to the building. Some of the work will be done by LGSTX Services.
Carver said the work included installing sprinklers, cordoning off part of the warehouse area that will be used and heated, concrete repair, heater work and increasing door heights.
Port Chair David Hockaday said the port would also have to find a way to move the building outside of the air park’s secured, fenced-in area.
The port also:
• Authorized Hockaday to negotiate hiring Dan Evers as the port’s new executive director. As of Friday, Evers has been hired, according to Hockaday.
• Recognized Kuehn, Marine and Hockaday for their service. All three members’ terms will expire at the end of September. Beth Ellis, Walt Rowsey and Reneé LaPine will replace them. That leaves two empty seats, but Hockaday said he believes the Clinton County Commissioners will reduce the board’s size from nine to seven.
• Appointed Rowsey as chair of the port, Brian Smith as vice chair and Larry Laake as secretary and treasurer.
• Resolved to purchase a number of items, including leasing two 2015 Kawasaki 95z7 wheel loaders to help with snow removal not to exceed $66,000, leasing a Ricoh copier and service plan for $217 per month, purchasing 40 tons of sodium formate to de-ice the runway not to exceed $78,000 and hiring SME for $192,000 for grant management and brownfield redevelopment consulting services.
SME, formerly Soil and Materials Engineers, will be paid from a $200,000 U.S. Environmental Protection Agency grant, which lasts for three years. Carver said the grant pays for assessments but those assessments don’t trigger any required action from the EPA.
• Approved to pay Cox Paving Company to mill out and repave an aisle-way at the air park for about $21,000.
• Agreed to pay LGSTX for repairs to another building. Those repairs aren’t to exceed $50,000 and include improvements to the truck loading docks and permanent improvements that Carver says will increase the life and value of the building. LGSTX is leasing the building for approximately six months.
At the time the lease was approved, Jim Osborne, director of airport operations at the air park, and a member of LGSTX’s management team, said the building would be used for a small cargo operation but added that he couldn’t say more than that.
• Agreed to award Energize Clinton County $15,000 to help it plan its Makerspace project. ECC is doing the project as part of the America’s Best Communities competition. ECC co-founders Mark Rembert and Taylor Stuckert said an air park building that has a mixture of finished, office space and industrial space would be an excellent fit for the implementation stage.
• Met in executive session. No official business followed that session.
Reach Nathan Kraatz by calling 937-382-2574, ext. 2510 or on Twitter @NathanKraatz.