Corpat, Inc., DBA Alamo/National Car Rental is one of five rental car companies operating at the Airport. Corpat has provided on-Airport rental cars at the Billings Airport for over twenty years. Prior to the construction of the new Quick Turn Around Car Wash Facility (QTA), the on-Airport rental car companies used an old Airport owned facility on the east end of the Airport as their operations and wash facility. During its occupancy at the old facility, Corpat constructed a 1,200 square foot steel building directly south of the old wash facility to provide additional operations and storage space for its rental car operations. After the completion of the new QTA, all rental car operations were moved to the new facility located on the west end of the Airport. Corpat desires to continue to use the building it constructed at the old wash/operations facility for additional storage for its rental car operations at the Airport. Staff has worked with Corpat on a one-year ground lease for 3,900 square feet to permit Corpat to retain its building on site at the old wash/operations facility for additional storage purposes. The Lease provides for optional one-year extensions and early cancellation should the need arise to clear the area for a new larger development. The initial term of the Lease commences January 1, 2012 and terminates on December 31, 2012.

The City Council may:

• Approve the Limited Commercial Use Ground Lease with Corpat, Inc., DBA Alamo/National; or
• Not approve the Limited Commercial Use Ground Lease with Corpat, Inc., DBA Alamo/National and require that Corpat remove its steel building from Airport premises.

The Ground Lease is for 3,900 square feet and will provide $975.00 annual rental revenue to the Airport in the first year. The rental rate for any annual extensions of the term would be adjusted by the Consumer Price Index for All Urban Consumers (CPI-U).

Staff recommends that the City Council approve the Limited Commercial Use Ground Lease with Corpat, Inc., DBA Alamo/National.