United Parcel Service, Inc. (UPS) has been a tenant of the Airport since 1993.  UPS has recently expanded its cargo operation and upgraded its sort facility located west of the Terminal Building.  In relation to this investment, UPS desires to renew its Lease with the Airport and requests a longer term.  This new Lease reflects the total ground area utilized by the entire UPS operation, and reflects a 47% increase in the size of leased ground space. The new Lease is for a ten-year term, which commences on September 1, 2016  and ends on August 31, 2026.  UPS is responsible for all site improvements and maintenance on the 114,362.45 square feet it is leasing.  Standard insurance and indemnification language has also been included.  A copy of the Lease is available in the City Clerk's Office.
 

↵City Council may:

• Approve the new ten-year Commercial Aviation Ground Lease with UPS; or
• Disapprove the new ten-year Commercial Aviation Ground Lease with UPS.

This Lease will generate $28,110.24 in rental income for the first year.  Future lease rentals will be adjusted annually by the Consumer Price Index for All Urban Consumers (CPI-U), published by the Department of Labor, Bureau of Labor Statistics.  Additionally, UPS provides the Airport approximately $266,207 annually in landing fees.
 
 

Staff recommends the City Council approve a new ten-year Commercial Aviation Ground Lease with UPS on two parcels totaling 114,362.45 square feet located west of the Terminal Building.