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Item 1.B.
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| City Council Regular | |
| Date: | 11/12/2024 |
| Title: | Non-Commercial Aviation Ground Lease with the State of Montana Department of Fish, Wildlife, and Parks |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that Council approve a new ten (10) year Non-Commercial Aviation Ground Lease with the State of Montana Department of Fish, Wildlife, and Parks for the term beginning July 1, 2024, and terminating on June 30, 2034.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The State of Montana Department of Fish, Wildlife, and Parks (FWP) currently leases a 21,875 square foot parcel in the Executive Hangar area located on the west end of the Airport for its hangar. FWP utilizes this hangar to house State-owned aircraft, which it uses for the management of wildlife in this region of the State. The current lease expired on June 30, 2024. This State of Montana agency desires to renew the Lease for this parcel for another ten (10) year term. Staff worked with the state representatives on the terms of a new lease for the term beginning July 1, 2024 and ending on June 30, 2034.
ALTERNATIVES
City Council may:
- Approve the ten-year lease with the Montana Fish, Wildlife and Parks Dept; or,
- Not Approve the ten-year lease with the Montana Fish, Wildlife and Parks Dept.
FISCAL EFFECTS
The Lease will generate $7,875.00/year of revenue for the City's Airport in the first year of the Lease. Rental rates for subsequent years will be adjusted annually each July 1 using the average of the monthly percentage increases of the previous calendar year, as determined by the Department of Labor's Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics. The average annual adjustment for calendar year 2023 was 4.14%. The average annual adjustment for calendar year 2024 will be calculated once the DOL determines the monthly CPI-U increase for December 2024.