The Non-Commercial Aviation Ground Lease with St. Vincent Healthcare expires on August 31, 2011. This is the renewal of St. Vincent Healthcare's ground rental in the Executive Hangar area located on the west end of the Airport at 2461 Overlook Drive. The parcel encompasses 18,750 square feet and includes a hangar constructed by St. Vincent Healthcare. The hangar is currently occupied by Agri-Systems, Inc. in a hangar use exchange agreement, whereby St. Vincent Healthcare actually occupies Agri-System's much larger hangar located at 2400 Overlook Drive. St. Vincent Healthcare utilizes the hangar it occupies for its LifeFlight helicopters that serve the surrounding region. The new Lease is for a five (5) year term, commencing September 1, 2011 and ending on August 31, 2016. Standard indemnification and insurance requirements are included in this Lease renewal.

The City Council may:

• Approve the renewal of the Non-Commercial Aviation Ground Lease with St. Vincent Healthcare for an additional five (5) year term, commencing September 1, 2011 and ending on August 31, 2016; or
• Not approve the renewal of the Non-Commercial Aviation Ground Lease with St. Vincent Healthcare for an additional five (5) year term, commencing September 1, 2011 and ending on August 31, 2016.
   

The City will receive annual revenue for this Lease of $4,762.56 in the first year. Subsequent years will be adjusted for inflation using the Consumer Price Index for All Urban consumers (CPI-U) published by the U.S. Department of Labor.

Staff recommends the City Council approve this Non-Commercial Aviation Ground Lease with St. Vincent Healthcare for an additional five (5) year term, commencing September 1, 2011 and ending on August 31, 2016.