On January 25, 2010, the City Council approved a Limited Commercial Aviation Building and Ground Lease with Big Sky Ground Support Industries as Lessee, for use of the the Airport owned facility commonly known as the former Operations/ARFF building, a warehouse type facility located on the east end of the airfield. The 3,429 square foot warehouse comprises the north one-half of the building, with the south one-half being the former rental car wash facilities. Alpine Aviation, Inc., DBA Big Sky Ground Support Industries, wishes to renew the Lease for its continuing ground equipment maintenance services. Staff has negotiated a new lease with a one-year term commencing March 1, 2012, and ending February 28, 2013. The new Lease also contains automatic one-year renewals, contingent on the development status of this facility and the adjoining vacant former rental car wash facility. Either party may cancel at any time by providing 90-day written notice to the other party. This parcel is one of the last remaining development sites at the Airport that has direct runway/taxiway access. The Airport has no immediate plans to develop this site; however, it is anticipated that this lot will be redeveloped in the future. The short term of the Lease would allow Alpine Aviation to continue its maintenance operations without interruption until such time that a new use is found for this prime development site.

The City Council may:

• Approve the renewal of the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries; or
• Not approve the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries, and require Alpine Aviation to move its maintenance operations elsewhere.

The initial year of this Lease will generate $12,587.86 of rental revenue for the Airport. Each subsequent year the rent 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 Limited Commercial Aviation Building and Ground Lease with Alpine Aviation, Inc., DBA Big Sky Ground Support Industries.