Frontier Airlines, Inc. currently contracts with Horizon Air to handle its counter and ground operations, and therefore does not have any leased operational space, but is charged for its use of the common-use areas like baggage claim, and office space for its local manager.  In July 2004, staff and Frontier representatives identified and agreed to use an airline freight office on the west end of the Terminal Building near the baggage claim area for the local manager's office space.  Frontier subsequently leased 131 square feet of office space. The Airport is underway with the construction of a fifth car rental counter in the Terminal Building, which necessitates relocating Frontier's office space from the baggage claim area. Staff has worked with Frontier to identify office space on the second floor of the Terminal Building that would be suitable for Frontier's needs. This new Lease is for Room 223, which contains 165 square feet of office space, and provides for a one-year term with automatic annual renewals. The Lease term will commence March 1, 2011 and terminate on February 29, 2012.

The City Council may:

• Approve the new Commercial Terminal Building Lease with Frontier Airlines, Inc.; or
• Not approve the new Commercial Terminal Building Lease with Frontier Airlines, Inc.

This Lease will generate approximately $7,482.72 of Terminal Building rentals in the first year of the Lease.  If this Lease renews for subsequent years, the current rate will be adjusted with all other airline Terminal rental rates, which are recalculated each Spring and take effect each July 1.

Staff recommends that the City Council approve the new Commercial Terminal Building Lease with Frontier Airlines, Inc. for 165 square feet of office space.