The State of Montana Department of Natural Resources and Conservation (DNRC) and Department of Environmental Quality (DEQ) currently rent office space on the first and second floors, and storage space in the basement of IP-9, the City owned office building located in the Airport Business Park. The DNRC also rents ground space for vehicle storage and a garage/shop area attached to IP-9. Both agencies' Leases were renewed in November 2009 and expire on October 31, 2013. The Airport recently completed an approved CIP project on IP-9, adding an elevator to the building. The new elevator adds lobby space to the leased space of both agencies. Additionally, the DNRC desires to add office space on the first floor and return a storage room in the basement. The Amendments make these space changes to the leased premises of both agencies.  Copies of these Amendments are on file in the City Clerk's Office.

The City Council may:

• Approve Amendment 1 to the Building and Ground Leases of both agencies; or
• Not approve Amendment 1 to the Building and Ground Leases of both agencies.

This additional space will generate an additional $7,406.81 in the remaining year of the Leases. The annual rental for all of the leased premises for both agencies is $138,131.04.

Staff recommends the City Council approve Amendment 1 to the Building and Ground Leases with both the DNRC and DEQ making the changes to the leased premises of both agencies.