|
Item 1.E.
|
| City Council Regular | |
| Date: | 03/28/2022 |
| Title: | Non-Commercial Aviation Ground Lease with Agri Systems |
| Presented by: | Kevin Ploehn, Director of Aviation and Transit |
| Department: | Airport |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends that City Council approve the Non-Commercial Aviation Ground Lease with Agri Systems beginning April 1, 2022, and ending March 31, 2032.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Agri Systems has been leasing a 27,650 square foot parcel since 2002 and constructed a hangar on the parcel shortly after inception of the lease. The current Non-Commercial Aviation Ground Lease will expire on March 31, 2022. Agri Systems desires to continue leasing this parcel and to renew its lease. Staff has worked with Agri Systems on a new Lease for this parcel, for a ten-year term beginning April 1, 2022, and terminating on March 31, 2032.
ALTERNATIVES
City Council may:
- Approve the Non-Commercial Aviation Ground Lease with Agri Systems; or
- Not Approve the Non-Commercial Aviation Ground Lease with Agri Systems.
FISCAL EFFECTS
The Lease will generate $8,294.88 in its first year. Lease rentals in subsequent years will be adjusted on an annual basis on the anniversary date, using the average of the monthly percentage increases for the previous calendar year, as determined by the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics.