Aero Interiors desires to renew the Limited Commercial Aviation Building and Ground Lease it has utilized for the past ten years.  Aero Interiors is asking for an additional five-year lease for this City owned hangar property, located in the Executive Hangar area on the west side of the Airport.  The new term commences on November 1, 2018, and terminates on October 31, 2023.  Aero Interiors currently utilizes this 4,200 square foot hangar to operate its specialized business of maintaining, repairing, retrofitting, altering, and modifying aircraft interiors and upholstery.

City Council may:

• Approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors; or
• Disapprove the five-year renewal of the Limited Commercial Aviation Building and Ground Lease to Aero Interiors, and direct staff on how to proceed.

This five-year lease will generate $24,276 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics.

Staff recommends that the City Council approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease with Aero Interiors.