Consent 1.E.
City Council Regular Business Meeting
- Meeting Date:
- 03/09/2026
- TITLE
- Limited Commercial Aviation Building and Ground Lease with Billings Clinic – Lot 1 (West Hangar)
- PRESENTED BY:
- Marita Herold
- Department:
- Airport
Presentation:
No
Legal Review:
Yes
Project Number:
N/A
RECOMMENDATION
Staff recommends that the City Council approve renewal of the Limited Commercial Aviation Building and Ground Lease with Billings Clinic for a five-year term.
EXECUTIVE SUMMARY
Billings Clinic desires to renew the Limited Commercial Aviation Building and Ground Lease it has utilized for the past twenty-five years. The Billings Clinic is asking for an additional five-year lease term for this City-owned hangar property, located in the Executive Hangar area on the west end of the Airport at 2421 Overlook Drive. This is one of two hangars the Billings Clinic leases at the Airport. Billings Clinic currently utilizes this 60' x 80' square foot hangar to operate its emergency flight service functions, including office space, pilot quarters and the storage, maintenance, and preparation of its fixed wing aircraft for the transport of seriously ill patients to and from distant locations. The lease commences March 1, 2026 and terminates on February 28, 2031.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The renewal process, the lease form, and the rental charges are consistent with established airport policies.
FISCAL EFFECTS
This five-year Lease will generate $37,103.28 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the average of the monthly year over year 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.
STAKEHOLDERS
ALTERNATIVES
- The City council may approve the five-year lease with Billings Clinic, or
- not approve the five-year lease with Billings Clinic