On May 31, 2005, the City took over the ownership of an executive hangar, the result of a Reversion of Improvements clause that was used in the lease agreements twenty-five years ago. This is one of four hangars that became City property through this process. The original owner of the hangar, Jack Bolme, has leased the hangar since its reversion. The most recent Lease with Mr. Bolme commenced January 1, 2006 and expired on December 31, 2010, and he desires to continue to lease the hangar for an additional five years. Mr. Bolme currently subleases the hangar to the U.S. Department of Agriculture for its local wildlife services operation. The aircraft hangar, located on the west end of the Airport, is a sixty (60) foot by sixty (60) foot building with 1,995 square feet of office space on two levels, and 2,936 square feet of hangar space.

The Council may:

• Approve the Aviation Building and Ground Lease with Mr. Bolme; or
• Not approve the Aviation Building and Ground Lease with Mr. Bolme. 

This Lease would generate revenues of $33,010.80 for the first year of the Lease. The rate will be adjusted annually for inflation on the anniversary date according to the Consumer Price Index for All Urban Consumers (CPI-U).

Staff recommends that the City Council approve the Limited Commercial Aviation Building and Ground Lease with Jack Bolme for a five-year term commencing January 1, 2011 and terminating on December 31, 2016.