Consent 1.I.
City Council Regular Business Meeting
- Meeting Date:
- 10/26/2026
- TITLE
- Non-Commercial Aviation Ground Lease with SCL Health – Montana DBA Intermountain Health St. Vincent Regional Hospital
- PRESENTED BY:
- Jeff Roach
- Department:
- Airport
Presentation:
No
Legal Review:
Yes
Project Number:
N/A
RECOMMENDATION
Staff recommends that City Council approve the new ten-year Non-Commercial Aviation Ground Lease with SCL Health – Montana DBA Intermountain Health St. Vincent Regional Hospital.
EXECUTIVE SUMMARY
The Non-Commercial Aviation Ground Lease with St. Vincent Healthcare expired on August 31, 2026. SCL Health – Montana DBA Intermountain Health St. Vincent Regional Hospital (Intermountain Health) wishes to continue leasing space at the Airport and enter into a new lease. Staff has worked with Intermountain Health on a new ten-year lease for the term that begins September 1, 2026 and ends on August 31, 2036.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
St. Vincent Healthcare has had ground leases at the Airport spanning nearly two decades. The Non-Commercial Aviation Ground Lease with St. Vincent Healthcare expired on August 31, 2026. SCL Health – Montana DBA Intermountain Health St. Vincent Regional Hospital (St. Vincent) wishes to continue leasing space at the Airport and enter into a new lease. This is a new lease that renews the term of the ground lease in the Executive Hangar area located on the west end of the Airport at 2461 Overlook Drive, and reflects the entity ownership change. The parcel encompasses 18,750 square feet and includes a hangar constructed by St. Vincent. Intermountain Health utilizes the hangar it occupies for its fixed wing aircraft and the LifeFlight helicopters which serve the surrounding region. The new lease is for a ten (10) year term, commencing September 1, 2026 and ending on August 31, 2036.
FISCAL EFFECTS
This ten-year lease will generate $7,125.00 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the average of the monthly percentage increases of the previous calendar year, as determined by Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics.
STAKEHOLDERS
ALTERNATIVES
The City Council may:
- approve the new ten-year ground lease with Intermountain Health to continue its tenancy at the Airport, or
- not approve the new ten-year ground lease at the Airport.