Ginn Development Company Gives Up Lease on Corporate Hanger at Flagler County Airport
To avoid lengthy litigation, Flagler County settles with Ginn Development over lease termination and $84,711 in past due rent.
Palm Coast, FL – April 20, 2010 – Last night, the Flagler County Board of County Commissioners reached a Settlement Agreement over a lawsuit with Ginn Development Company LLC. At issue was Ginn’s non-payment of rent due the county from Ginn’s lease of a county owned hanger facility at the airport.
Ginn was released from their future obligations under the lease. In return, the county gets Ginn-owned tangible property worth an estimated $150,000 that remains inside the facility. Ginn will also pay $13,000 to bring its tangible property tax account current and pay the county’s legal costs attributed to the dispute ($7,575). Ginn also forfeits a $16,664 security deposit related to the lease. Ginn has vacated the premises and owes back rent of $84,711. Some of the newfound tangible property will be sold by the county. The rest will be retained for airport use.
The Class A facility was built by the county to be occupied by Ginn for $18,385 per month under a 20-year lease agreement since early 2006. The county spent $2,050,000 to build the hanger. Debt service on this taxable obligation is paid quarterly and totals $50,212.32 or $200,849.28 annually. The balance on the construction loan is estimated at $1,849,448. The Settlement Agreement frees the county to look for new tenants, an option that would have been limited if the dispute remained unsettled.
The airport is operated as an enterprise fund; one which "pays its own way" from operating revenue. If the hanger remains vacant for a prolonged period, county commissioners acknowledge that they would have to dip into the county’s general fund to cover the continuing debt obligation.
The corporate hanger consists of a 14,400 square foot steel building that has 4,400 square Feet of air conditioned office space (4 offices, reception/lobby, restrooms, pilots lounge, service kitchen, one full bath), and 10,00 square feet of hanger space with a 17,00 square foot concrete apron.
Ginn Development Company LLC is just one of several hundred separate legal entities under which Bobby Ginn and his financial partner Lubert Adler operate their real estate development enterprise. Flagler County records show Ginn Development owns tangible assets located at Lupi Court and a condominium at 100 Palm Harbor Pkwy. Ginn Development also owns property, primarily real estate, in Osceola County on which over $109,000 was paid in 2009 property taxes. St. Lucie County records show real estate owned by Ginn Development assessed for $2,037,000 on which a $289,238.88 tax bill remains unpaid.
Why am I not Surprised?
What do you know! Ginn and LA have screwed Flagler County as well. How do they continue in this manner without the law catching up with them? This is just another display of arrogance. If this were you or I, we would be in jail. Incredibly greedy people who have no consideration for anyone or anything.