Edwards Jet Center (EJC) desires to enter into a new lease for additional building and ground space to garage their deicing vehicles and equipment, and ground handling equipment.  The building proposed in this Lease is a portion of the former rental car wash facility, located on the east side of the Airport.  The space is immediately south of the space leased to Alpine Aviation DBA Big Sky Ground Support Services.  The initial term is for six months, beginning November 1, 2014 and ending April 30, 2015.  The Lease includes an option for EJC to extend the Lease in additional six-month increments if EJC has a continuing need for housing their deicing and ground handling equipment.  EJC has agreed to reimburse the Airport for building preparation costs incurred for making this space usable and accessible again.  The space had been vacated and taken out of service after the new Car Rental Quick Turn Around (QTA) Facility was completed and put into service.  A copy of the Lease is available in the City Clerk's Office.

City Council may:

• Approve the Limited Commercial Aviation Building and Ground Lease with EJC; or
• Not approve the Limited Commercial Aviation Building and Ground Lease with EJC.

This Lease will generate $4,968.72 in rental income for the first six-month term, and reimburse the Airport for $6,400.00 in building preparation costs.  In the event EJC opts to extend the initial six-month term, future lease rentals will be adjusted annually by the Consumer Price Index for All Urban Consumers (CPI-U).

Staff recommends the City Council approve a new Limited Commercial Aviation Building and Ground Lease at Billings Logan International Airport with EJC for additional space to garage deicing and ground handling vehicles and equipment.