Billings Clinic desires to renew the Limited Commercial Aviation Hangar and Ground Lease it has held for the past five years on Lot 7 situated in the Executive Hangar area, located at 2401 Overlook Drive on the west end of the Airport.  Billings Clinic is asking for an additional ten-year lease term for this City owned hangar property.  The term commences on September 1, 2018, and terminates on August 31, 2028.  Billings Clinic currently utilizes this 5,400 square foot hangar to operate its emergency flight service functions, including the storage, maintenance, and preparation of their fixed wing aircraft for the transport of seriously ill patients to and from distant locations.  This is one of two hangar and ground leases that Billings Clinic has at the Airport and is also known as the Clinic's East Hangar at the Airport.

City Council may:

• Approve the renewal of the Limited Commercial Aviation Hangar and Ground Lease to Billings Clinic; or
• Disapprove the renewal of the Limited Commercial Aviation Hangar and Ground Lease to Billings Clinic.

This ten-year lease will generate $31,212 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), published monthly by the Department of Labor.  This rate is similar to what is being charged to other tenants utilizing City owned executive hangars.

Staff recommends City Council approve the ten-year renewal of the Limited Commercial Aviation Hangar and Ground Lease with the Billings Clinic on Lot 7, aka East Hangar, situated in the Executive Hangar area located on the west end of the Airport.