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Item 1.H.
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| City Council Regular | |
| Date: | 11/13/2023 |
| Title: | Limited Commercial Aviation Building and Ground Lease with Aero Interiors |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends the City Council approve a Limited Commercial Aviation Building and Ground Lease with Aero Interiors for a new five-year term ending October 31, 2028.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Aero Interiors leases a City-owned hangar located on the west end of the Airport at 2431 Overlook Drive and desires to renew the Limited Commercial Aviation Building and Ground Lease for an additional five-year term. The company has leased the hangar for the past ten years. The new term commences on November 1, 2023 and terminates on October 31, 2028. Aero Interiors currently utilizes this 4,200 square foot hangar to operate its specialized business of maintaining, repairing, retrofitting, altering, and modifying aircraft interiors and upholstery.
ALTERNATIVES
City Council may:
- Approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors, or,
- Not approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors.
FISCAL EFFECTS
This five-year lease will generate $29,568.00 in annual revenue in the first year, with lease rentals in subsequent years to be adjusted annually on the anniversary date of the Lease using the average of the monthly percentage increases of the previous calendar year, as determined by the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics. The proposed rate of $7.04 per square foot per year is in line with the rates for other similar space at the Airport.