On November 13, 2006, the City Council approved a Non-Commercial Aviation Building and Ground Lease with Corporate Air, as Lessee, for three (3) Airport owned hangars commonly known as IP-1, IP-2, and IP-4, along with their adjoining parcels of land. These hangars and parcels of land are located on the east end of the Airport in the Airport Business Park at 461, 471, and 491 North View Drive. The hangars measure 50 feet x 80 feet and comprise 4,000 square feet each. The accompanying ground area comprises 35,310 square feet. The term of this Lease expired on November 30, 2011. Corporate Air now wishes to renew the Lease for its continuing storage needs. Staff has negotiated a new five-year Lease with Corporate Air, commencing December 1, 2011, and ending November 30, 2016.

A copy of the Lease is available for review in the City Clerk's Office.

The City Council may:

• Approve the renewal of the Non-Commercial Aviation Building and Ground Lease with Corporate Air; or
• Not approve the Non-Commercial Aviation Building and Ground Lease with Corporate Air and require Corporate Air to move its stored equipment elsewhere. 

The first year of this Lease will generate $33,600 of rental revenue for the Airport. The annual rent for each subsequent year will be adjusted using the Consumer Price Index for All Urban Consumers (CPI-U) to keep pace with annual inflation.

Staff recommends that City Council approve the five-year Non-Commercial Aviation Building and Ground Lease with Corporate Air for the term beginning December 1, 2011, and ending November 30, 2016.