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Item 1.D.
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| City Council Regular | |
| Date: | 03/25/2024 |
| Title: | Non-Commercial Aviation Ground Lease with Agri Systems |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that City Council approve the Non-Commercial Aviation Ground Lease with Agri Systems beginning March 1, 2024 and ending on February 29, 2044.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Agri Systems has been an Airport tenant since 2002, when the company leased a parcel on the west end to build its first hangar at the Airport. The lease on that parcel was recently renewed after the initial term expired, for a new ten-year term, and approved by the City Council in March 2022. Agri Systems now desires to build another hangar. Staff worked with Agri Systems on a new lease for a 15,360 square foot parcel on which to build a new 60 ft. by 70 ft. hangar. This parcel is located at 2447 Overlook Drive and completes infill development of that row of hangar developments. The parcel is the last developable parcel in that specific hangar area, and was selected due to Agri Systems desire for water/sewer connectivity. The new Non-Commercial Ground Lease has a twenty-year term beginning March 1, 2024 and ending on February 29, 2044.
ALTERNATIVES
City Council may:
- Approve the Non-Commercial Aviation Ground Lease with Agri Systems, or
- Not approve Non-Commercial Aviation Ground Lease with Agri Systems.
FISCAL EFFECTS
The initial ground rental rate is $0.34/square foot per year. The Lease will generate $5,222.40 in its first year. The initial rental rate in subsequent years will be adjusted on an annual basis on the anniversary date, using the average of the monthly percentage increases for 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.