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Item 1.K.
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| City Council Regular | |
| Date: | 02/13/2023 |
| Title: | BLM Lease for IP-3 in the Airport Business Park |
| Presented by: | Shane Ketterling, Assistant Director of Aviation and Transit |
| Department: | Airport |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends the City Council approve the IP-3 Lease in the Airport Business Park with the Bureau of Land Management (BLM) for a five-year term beginning January 1, 2023, and ending December 31, 2027.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The U.S. Department of Interior on behalf of the BLM, leases several buildings and additional ground space at the Airport to house and support its Regional Wildland Fire Cache operations. The Fire Cache operation is part of the BLM campus located in the Airport Business Park; the campus also includes a tanker base, dispatch center, and fire station. BLM is requesting to lease an additional building to support its growing Fire Cache operation. The agency has been utilizing this space temporarily since 2017, as part of its seasonal Fire Cache operations each Summer. The subject building consists of 4,000 square feet of storage in Building IP-3, an older, unheated, former military hangar, which is one in a series of four of these type of hangars. BLM currently subleases IP-2, another of the hangars in this series, from another Airport tenant. The IP-3 Lease also includes 4,250 square feet of ground space located in front of and behind the hangar, which facilitates entry and exit to the hangar. The proposed Lease is for a 5-year term commencing on January 1, 2023, and ending on December 31, 2027.
ALTERNATIVES
City Council may:
- Approve the 5-year Lease with the BLM; or
- Not Approve the 5-year Lease with the BLM.
FISCAL EFFECTS
The City will receive $14,739.24 rental revenue in the first year of the Lease. Subsequent years will be adjusted each anniversary by the Department of Labor, Bureau of Labor Statistics Consumer Price Index for Wage Earners and Clerical Workers (CPI-W), the index preferred by Federal agencies. The rental rate is consistent with that for the three other hangars in this series and other cold storage building space at the Airport. The rate is also in line with off-Airport storage space rates as adjusted for age of the building, no heat, and restricted access. The narrow 40-foot building width discourages commercial and most private aircraft hangaring, the primary reason these old military hangars are used only for cold storage. The hangar is located in a secured area of the Airport and has no allowable direct public access, which limits the ability to rent the building. The IP-3 hangar is conveniently located in relation to the other buildings BLM leases for its Fire Cache operations and is a good addition to the BLM campus at the Airport.