On May 10, 2004, B & J Properties Limited, LLC entered into a twenty-year West End Hangar Ground Lease with the City of Billings and subsequently built a 3,600 square foot hangar on the leased parcel located at 2709 Overlook Drive on the west end of the Airport.  The leased parcel of land contains 5,950 square feet.  On May 11, 2015, B & J Properties sold the hangar it owned and assigned its Lease interest to KW Air, LLC.  This transaction also involved Amendment One to the Lease to update the lease language to reflect current standard lease language regarding market adjustments, specific privileges, insurance, and non-discrimination language.  Amendment One also extended the Lease term for approximately one additional year to provide a full ten years remaining on the term at the time of the Assignment from B&J Properties.  The expiration date was extended to May 31, 2025.

KW Air, LLC now desires to sell the hangar it owns and assign its Lease interest to Jim Ragain.  This Assignment and Transfer will formally transfer the Lease as amended on this parcel from KW Air, LLC to Jim Ragain.  A copy of the Assignment and Transfer is on file in the City Clerk's Office.
 

City Council may:

• Approve the Assignment and Transfer of the West End Hangar Ground Lease from KW Air, LLC to Jim Ragain; or
• Disapprove the Assignment and Transfer of the West End Hangar Ground Lease from KW Air, LLC to Jim Ragain.

There is no financial impact from the Assignment and Transfer; the name on the Lease is all that changes with this action.  Annual rent will continue to be adjusted annually on the anniversary date by the Department of Labor Consumer Price Index For All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics, for the previous twelve months to keep pace with annual inflation.

Staff recommends that the City Council approve the Assignment and Transfer of the West End Hangar Ground Lease from KW Air, LLC to Jim Ragain.