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Item 1.G.
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| City Council Regular | |
| Date: | 03/24/2025 |
| Title: | West End Hangar Ground Leases with Beacon Air Group, LLC |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Template Contract |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that City Council approve the two West End Hangar Ground Leases with Beacon Air Group, LLC for 25-year terms commencing April 1, 2025, and ending March 31, 2050.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On February 14, 2022, City Council approved a West End Hangar Ground Lease with Beacon Air Group, LLC (Beacon) to construct the first hangar in the new West End Large Hangar Area. On March 28, 2022, City Council approved two additional West End Hangar Ground Leases with Beacon to construct two additional large hangars in the new West End Large Hangar Area. The Airport created this area specifically for space to construct large hangars to accommodate large corporate and private aircraft. The west row of ground parcels is now entirely under lease with three parcels remaining on the east row in this area. Kevin Button of Beacon desires to construct two additional new 120 ft. x 100 ft. hangars in this West End Large Hangar Area. Staff has worked with Beacon on two new twenty-five year West End Hangar Ground Leases that commence April 1, 2025, and terminate March 31, 2050. The proposed leased premises include two 38,700 square foot parcels on the newly named street Jetway Drive. These hangars will be the fourth and fifth hangars Beacon will have constructed in this new West End Large Hangar Area.
ALTERNATIVES
City Council may:
- Approve the West End Hangar Ground Leases with Beacon Air Group, LLC ; or,
- Not Approve the West End Hangar Ground Leases with Beacon Air Group, LLC.
FISCAL EFFECTS
The initial annual rental for these Leases will be $13,545 for each Lease. Lease rentals in subsequent years will be adjusted on an annual basis on the anniversary dates, 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.