The State of Montana Department of Environmental Quality (DEQ) currently rents all of the office space on the first and second floors in the west wing, and office space on the first floor of the southwest wing of IP-9, the City owned office building located in the Airport Business Park.  The DEQ also rents storage space in the basement of IP-9, as well as some ground space for vehicle storage, with the vehicle storage ground space being shared with the Department of Natural Resources and Conservation, another tenant in IP-9. The leased premises include 8,754.74 square feet of building space and 22,680 square feet of ground space.  This State of Montana agency desires to renew the Lease for this space for another five-year term.  

The City Council may:

• Approve the five-year renewal Lease with the DEQ; or
• Not approve the five-year renewal Lease with the DEQ.

The Lease will generate $76,167.84 per year of revenue for the City's Airport, and $380,839.20 for the five-year term beginning March 1, 2014 and ending on February 28, 2019.  Should the DEQ opt to extend the Lease for additional years, a new rental rate will be determined for the extended period.

Staff recommends that  the City Council approve a new five-year Airport Business Park Building and Ground Lease with the State of Montana DEQ.