Board Approves Two Long-Term Leases
March 28, 2016 — The Cincinnati/Northern Kentucky International Airport is launching two new land development initiatives that will continue building its strategies for revenue diversification and growing economic development opportunities.
This month, the CVG Airport Board approved two new projects:
- Multi-tenant cargo building: CVG will enter into a lease agreement with Aeroterm, US Inc. for development of a 25,000 square-foot, multi-tenant cargo building on approximately 11 acres of land. The term agreement is for 35 years with two additional five year options with a minimum capital investment of $3.3M. The project is anticipated to be completed within 12 months of signed lease.
- Commercial warehouse distribution facility: CVG will enter into a lease agreement with VanTrust Real Estate, LLC for development of commercial warehouse/distribution facilities on 41 acres of land. The term agreement is for 49 years and 11 months with a minimum capital investment of $10M. The project is anticipated to be completed by August 2017.
“The geographic position of CVG is a highly desirable and strategic location for land developers,” said Candace McGraw, chief executive officer, Cincinnati/Northern Kentucky International Airport. “These projects create win/win/win opportunities for the airport, the community and developers. The airport receives new revenue streams, which lowers the cost of operations for airlines and tenants, the community sees job growth and economic development, and developers have access to over 75 percent of the U.S. population within 600 miles of the airport.”
“CVG has well over 7,500 acres of property,” said J. Michael Schlotman, Kenton County Airport Board Chairman. “We’re excited about these new land development initiatives and the economic development opportunities they represent.”
Part of CVG’s current five-year strategic plan includes land development with a goal to lease approximately 350 acres of land for development by 2021.