The State of Montana Department of Natural Resources and Conservation (DNRC) currently rents all of the office space on the first and second floors in the east 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 DNRC also rents storage space in the basement of IP-9, a garage/shop area attached to IP-9, along with some ground space for vehicle storage, with the vehicle storage ground space being shared with the Department of Environmental Quality, another tenant in IP-9.  The leased premises include 10,959.41 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 DNRC; or
• Not approve the five-year renewal Lease with the DNRC.

The Lease will generate $87,183.72 per year of revenue for the City's Airport, and $435,918.60 for the five-year term beginning March 1, 2014 and ending on February 28, 2019.  Should the DNRC opt to extend the Lease for additional years, a new rental rate will be determined for the extended period.

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