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Item 1.H.
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| City Council Regular | |
| Date: | 06/09/2025 |
| Title: | Commercial Aviation Ground Lease with Dan and Julane Wells |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Template Contract |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that City Council approve the Commercial Aviation Ground Lease with Daniel W. Wells and Julane Wells, Joint Tenants, commencing May 1, 2025 and ending April 30, 2035.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The subject parcel of this Lease is located on the east end of the Airport at 1761 Aviation Place and has a long history. On May 24, 1999, Corporate Air entered into a twenty-five year Commercial Aviation Ground Lease with the City of Billings and subsequently built a 12,400 square foot building to accommodate a new U.S. Postal Service sort facility on the subject parcel. Dan Wells was the building contractor for the Corporate Air construction. In October 2004, Corporate Air sold the building and assigned its Lease interest to Industrial Properties, Inc. In 2015, Industrial Properties sold the building it owned and assigned its Lease interest to Daniel W. Wells and Julane Wells. The Wells have held that assigned Lease to its recent expiration on April 30, 2025. The Wells now wish to continue to lease with a new term. Staff has worked with the Wells to resize the parcel on a new 10-year term Lease to commence May 1, 2025 and end on April 30, 2035.
ALTERNATIVES
City Council may:
- Approve the new Commercial Aviation Ground Lease with Daniel W. Wells and Julane Wells, Joint Tenants; or,
- Not Approve the new Commercial Aviation Ground Lease with Daniel W. Wells and Julane Wells, Joint Tenants.
FISCAL EFFECTS
Annual rent for the first year is $35,995.80. Annual rent for subsequent years will be adjusted on the May anniversary date each year 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.