On March 12, 2012, the Council approved the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc. DBA Big Sky Ground Support Industries (BSGS) for the Airport facility commonly known as the former Operations/ARFF building, a warehouse-type facility located on the east end of the airfield.  The Lease renewed annually each March.  The company (and its predecessor) leased this facility since 2008. The 3,429 square foot warehouse comprised the north one-half of the building with the south one-half formerly housing the car rental wash facilities, and vacant since the addition of the new QTA Car Wash Facility on the west end of the airfield.  Alpine Aviation, the parent company, also leases IP-5, a large hangar facility in the Airport Business Park, and is the local contractor for the U.S. Postal Service.

The Airport will be demolishing the former Operations/ARFF building (aka old car wash facility) to make room for a new hangar facility that will be constructed by Edwards Jet Center.  As a result of the demolition, BSGS will be displaced from this space.   BSGS wishes to continue its maintenance operations for Alpine Aviation and to remain at the Airport.  Staff has worked with BSGS to locate alternative space for their maintenance activities and prepared a new Limited Commercial Aviation Building and Ground Lease for the 2,033.05 square feet in the IP-12 Building in the Airport Business Park and additional 523.79 square feet of space in the basement of the Terminal Building.  The new Lease commences August 1, 2015 and expires July 31, 2017.  The two-year term coincides closely with the term of Alpine Aviation's Lease on the IP-5 hangar. A copy of the Lease is on file in the City Clerk's office.
 

City Council may:

• Approve the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries, or


• Disapprove the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries.
   
  
   

The initial year of this Lease will generate $12,353.52 of rental revenue for the Airport.  The subsequent year's rental rate will be adjusted using the Department of Labor Consumer Price Index for Urban Consumers (CPI-U), published by the Bureau of Labor Statistics.
 

Staff recommends City Council approve the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries for the term beginning August 1, 2015, and ending July 31, 2017.