Turnip, Inc. desires to renew the West End T-Hangar Ground Lease it has utilized since 1994.  Turnip, Inc. is asking for an additional 20-year lease term for this 35,140 square foot parcel.  The Turnip, Inc. leasehold has a large nested T-Hangar structure on it containing fifteen individual T-Hangars.  The ground space for the individual T-Hangars is subleased by Turnip, Inc. to the individual private hangar owners.  The term of the new Lease commences on September 1, 2013 and terminates on August 31, 2033.  A copy of the Lease is on file in the City Clerk's Office.

The City Council may:

• Approve the 20-year renewal of the West End T-Hangar Ground Lease to Turnip, Inc.; or
• Not approve the 20-year renewal of the West End T-Hangar Ground Lease to Turnip, Inc.

This 20-year Lease will generate $7,379.40 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), and also allows for a market rate adjustment if necessary, on the 10th and 15th years of the Lease.  

Staff recommends that City Council approve the 20-year renewal of the West End T-Hangar Ground Lease with Turnip, Inc.