Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 11/13/2017
- TITLE
- Renewal of Non-Commercial Aviation Ground Lease with First Interstate Bank
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Airport
Presentation:
No
PROBLEM/ISSUE STATEMENT
First Interstate Bank desires to renew the Non-Commercial Aviation Ground Lease for its hangar on the west end of the Airport located at 2451 Overlook Drive. The Bank has leased this 13,125 square foot parcel since 1997. The most recent Lease expired on August 31, 2017. The new ten-year Lease commences on September 1, 2017 and ends on August 31, 2027.
ALTERNATIVES ANALYZED
↵City Council may:
- Approve the Non-Commercial Aviation Ground Lease with First Interstate Bank; or
- Disapprove the Non-Commercial Aviation Ground Lease with First Interstate Bank.
FINANCIAL IMPACT
The initial year of this Lease will generate $3,675 of rental revenue for the Airport. The subsequent years' 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.
RECOMMENDATION
Staff recommends City Council approve the Non-Commercial Aviation Ground Lease with First Interstate Bank for a ten-year term beginning September 1, 2017, and ending August 31, 2027.