United Parcel Service, Inc. (UPS) has been a tenant of the Airport since 1993.  UPS has recently expanded its cargo operation west of the Terminal Building, and desires to renew its Lease with the Airport.  This new Lease reflects the total ground area utilized by UPS' expanded operation. This Lease commenced on February 1, 2015 and ends on January 31, 2016.  The Lease has a one-year automatically renewable term with the ability of either party to cancel the Lease on 90 days written notice.  UPS is responsible for all site improvements and maintenance on the 60,619.79 square foot parcel it is leasing.  Standard insurance and indemnification language has also been included.  A copy of the Lease is available in the City Clerk's Office.
 

City Council may:

• Approve the new Commercial Aviation Ground Lease with UPS; or
• Disapprove the new Commercial Aviation Ground Lease with UPS.

This Lease will generate $14,791.20 in rental income for the first year.  Future lease rentals will be adjusted annually by the Consumer Price Index for All Urban Consumers (CPI-U), published by the Department of Labor, Bureau of Labor Statistics.  Additionally, UPS provides the Airport approximately $130,000 annually in landing fees.
 

Staff recommends the City Council approve a new Commercial Aviation Ground Lease with UPS on a 60,619.79 square foot parcel west of the Terminal Building.