Aero Interiors desires to renew the Limited Commercial Aviation Building and Ground Lease it has utilized for the past five years.  Aero Interiors is asking for an additional five-year lease term for this City owned hangar property.  The new term commences on November 1, 2013 and terminates on October 31, 2018.  Aero Interiors currently utilizes this 4,200 square foot hangar to operate its specialized business of maintaining, repairing, retrofitting, altering, and modifying aircraft interiors and upholstery.  A copy of the Lease is on file in the City Clerk's Office.

The City Council may:

• Approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors; or
• Not approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors.

This five-year Lease will generate $22,344 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the Consumer Price Index for All Urban Consumers (CPI-U).  This rate is similar to what is being charged to other tenants utilizing City owned executive hangars.

Staff recommends that City Council approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease with Aero Interiors.