Billings Clinic desires to renew the Limited Commercial Aviation Building and Ground Lease it has enjoyed for the past ten years. The Billings Clinic is asking for an additional five-year lease term for this City-owned hangar property, located in the Executive Hangar area on the west end of the Airport. The Billings Clinic currently utilizes this two-level, 60' x 80' square foot hangar to operate its emergency flight service functions, including office space, pilot quarters, and hangar space for the storage, maintenance, and preparation of its fixed wing aircraft for the transport of seriously ill patients to and from distant locations. The Lease commences March 1, 2011 and terminates on February 29, 2016.

The City Council may:

• Approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease with Billings Clinic; or 
   
• Not approve the five-year renewal of the Limited Commercial Aviation Building and Ground Lease with Billings Clinic.

This five-year Lease will generate $25,160.88 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the Consumer Price Index for All Urban Consumers (CPI-U).

Staff recommends that the City Council approve renewal of the Limited Commercial Aviation Building and Ground Lease with the Billings Clinic for a five-year term.