Billings Clinic desires to renew the Limited Commercial Aviation Hangar and Ground Lease for the hangar property it has utilized for the past five years.  Billings Clinic is asking for an additional five-year lease term for this City owned hangar property located in the executive hangar area.  The term commences on September 1, 2013 and terminates on August 31, 2018.  Billings Clinic currently utilizes this 5,400 square foot hangar to operate its emergency flight service functions, including the storage, maintenance, and preparation of their fixed wing aircraft for the transport of seriously ill patients to and from distant locations.  A copy of the Lease is available for review in the City Clerk's Office.

The City Council may:

• Approve the five-year renewal of the Limited Commercial Aviation Hangar and Ground Lease to Billings Clinic; or
• Not approve the five-year renewal of the Limited Commercial Aviation Hangar and Ground Lease to Billings Clinic.

This five-year Lease will generate $28,728 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the Consumer Price Index for all Urban Consumers (CPI-U).  This rate is similar to what is being charged to other tenants utilizing City owned executive hangars.

Staff recommends that City Council approve the five-year renewal of the Limited Commercial Aviation Hangar and Ground Lease with the Billings Clinic on Lot 7 – East Hangar.