Universal Aviation Bermuda will run its executive jet facility out of the same airport building previously used by Sovereign Group, and has extended a $1 million financial settlement offer to Sovereign, Transport Minister Terry Lister announced today.Mr Lister presented the agreement between Universal Aviation and the Department of Aviation Services for the jet handling facility to the House of Assembly this morning.The news comes after various legal wrangles relating to the executive jet facility, which hosts nearly 3000 executive jet arrivals per year.Government landed in hot water with Bermuda Aviation Services (BAS), the incumbent operator, after introducing competition for the operation of the facility.In 2008, a licence was handed to Sovereign Group but it later emerged BAS already had exclusive rights for the same services until 2014.A Supreme Court hearing found in favour of BAS, with Government ordered to pay the company $2 million for loss of revenue caused by the breach of its exclusive rights.The Ministry of Transport decided in 2009 not to renew the licence of Sovereign when it expired in June, 2009.Mr Lister said today this was because the company had fallen into arrears with the payment of taxes, social insurance and landing fees.A request for proposals was issued in December 2009 and a panel consisting of Government technical officers and a member of the private sector elected to go with Universal Aviation Bermuda (UA).Mr Lister told the House of Assembly it is intended that UA will run its executive jet handling facility out of the same building, number 1079, at the north eastern end of the airfield formerly used by Sovereign.In July 2006, the Bermuda Land Development Company entered a 20-year sub lease agreement with Sovereign. In May 2007, Cabinet approved an order designating the building and its surrounding lands to the Department of Airport Operations (DAO). The order was passed last summer by Parliament.Mr Lister told the House of Assembly today the Attorney General's Chambers concluded that when the DAO acquired the land, it also acquired the building for which Sovereign held the lease.He said that Sovereign's rights and interests in the land still apply and the lease, which has 15 years remaining on it, is now with the DAO and not the BLDC.Mr Lister told the House: "In order to facilitate its extended use of building 1079 and take ownership of the long term lease, UA has extended a $1 million financial settlement offer to Sovereign which Sovereign has agreed to in principle."Consequently, Cabinet has granted approval for DAO to enter into the 15-year lease agreement with UA."He added: "After extensive negotiations and a long and arduous legal process to facilitate the land re-designation, it is with great satisfaction that I lay before the Honourable House the proposed concession agreement between the DAO and UA."This agreement dictates that the Bermuda Government receives a percentage of UA's annual net revenue. This is in addition to the average $125,000 in annual revenue the Government shall receive in rent per the aforementioned lease agreement."Mr Lister said that similar to previous agreements with BAS and Sovereign, the agreement calls for a minimum annual guarantee amount of $28,6000 payable to Government or a percentage share of the company's net revenue, whichever is greater."He said for years one to four, the percentage rate is up to four percent. In years five through to ten, a nine percent share is required. There is provision in year eleven to negotiate a higher percentage rate for the remaining term.Mr Lister said: "This agreement ultimately enables the Government to realise its original objective of ensuring that Bermuda's high net worth visitors are welcomed at a first class executive jet handling facility that one would expect at a premium destination like Bermuda."This proposed agreement with UA, a company voted Best Handling Service Provider three years in a row by professional pilots, ensures that this vital facility is operated by one of the world's leading aviation organisations that has been in business for over 50 years and in 19 countries."The opposition One Bermuda Alliance and United Bermuda Party have indicated they wish to ask questions about the topic later in this morning's House of Assembly session.