The City leases an 85-foot by 100-foot parcel of land to the Federal Aviation Administration (FAA) for its combination garage/shop. This facility is on the east end of the Airport, on the airfield side of the fence, and is used by the FAA as a support facility in the maintenance of the numerous FAA owned navigational aids, radar, and equipment that are located in and around the runway complex.  The existing Lease #DTFA11-02-L-00418 expires on September 30, 2012. The FAA is interested in extending the Lease for an additional five (5) years.

The City Council may:

• Approve the renewal of the FAA Garage/Shop Lease for an additional 5-year term; or
• Not approve the renewal of the FAA Garage/Shop Lease.

This Lease will generate $2,380 per year for the City. This rate was adjusted up from the previous rate by the Consumer Price Index-Urban Wage Earners and Clerical Workers (1982-84=100), the inflation index used for leases with any Federal agency.

Staff recommends the City Council approve the renewal of the FAA Garage/Shop Site Ground Lease for an additional five (5) years, commencing October 1, 2012 and expiring on September 30, 2017.