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Item 1.E.
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| City Council Regular | |
| Date: | 09/08/2025 |
| Title: | West End Hangar Ground Lease Experimental Aircraft Association Chapter 57, Inc. |
| Presented by: | Jeff Roach |
| Department: | Airport |
| Presentation: | No |
| Legal Review: | Template Contract |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that the City Council approve the West End Hangar Ground Lease with Experimental Aircraft Association Chapter 57, Inc. for a new ten-year term.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Experimental Aircraft Association Chapter 57, Inc., (EAA) purchased the hangar located on the west end of the Airport at 2507 Overlook Drive from a former tenant, Picacho Aviation, L.L.P., c/o Col. Frank Borman, and received the ground lease via an Assignment and Transfer approved by the City on July 13, 2015. The assigned lease expired June 30, 2025, and the EAA would like to continue to lease this parcel. Staff has worked with the EAA on a new West End Hangar Ground Lease for the 6,300 square foot parcel. The new Lease commences July 1, 2025, and expires on June 30, 2035.
ALTERNATIVES
City Council may:
- Approve the West End Hangar Ground Lease with Experimental Aircraft Association Chapter 57, Inc.; or,
- Not Approve the West End Hangar Ground Lease with Experimental Aircraft Association Chapter 57, Inc.
FISCAL EFFECTS
The City will receive $1,827.00 rental revenue in the first year of the Lease. The rental rate will be adjusted on an annual basis on each anniversary date, using the average of all 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.