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Item 1.G.
 
City Council Regular
Date: 02/26/2024
Title: West End Hangar Ground Leases with Beacon Air Group, LLC
Presented by: Jeff Roach
Department: Airport
Presentation: No
Legal Review: Yes
Project Number: N/A

RECOMMENDATION

Staff recommends that City Council approve the three West End Hangar Ground Leases with Beacon Air Group, LLC for 20-year terms commencing March 1, 2024 and ending February 29, 2044.
 

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

Beacon Air Group, LLC (Beacon) desires to construct three new small 60 ft. x 60 ft. hangars on the westend of the Airport to meet the demand for ready built, small hangars at the Airport.  The parcels are located on the north side of Taxilane D and will finish this row of hangar development.  In 2022, Beacon previously leased three parcels in the new Westend Large Hangar area to construct three new large 100 ft. x 120 ft. hangars to meet the large hangar demand at the Airport.  Beacon's affiliate, Beacon Air Group Billings (BAG Billings) also leased ground space and constructed new facilities for their new, recently opened Fixed Base Operator business at the Airport.  Staff worked with Beacon on these new twenty-year West End Hangar Ground Leases that will commence March 1, 2024 and terminate on February 29, 2044.    
 

ALTERNATIVES

City Council may:
  • Approve the West End Hangar Ground Leases with Beacon Air Group, LLC  for a 20-year term; or,
  • Not Approve the West End Hangar Ground Leases with Beacon Air Group, LLC.

FISCAL EFFECTS

The initial annual rental for these leases will be $2,266.20 for each lease.  Lease rentals in subsequent years will be adjusted on an annual basis 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.
 

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