Aaron Sparboe and Jonathan Scott of ASJS Aircraft Services, LLC desire to enter into a new Non-Commercial Aviation Ground Lease and to construct a new 80' x 90' hangar on a parcel located at 2412 Overlook Drive.  This Lease is for a 21,269 square foot parcel located on the west end of the Airport.  The Lease is for twenty years, commencing December 1, 2015 and terminating on November 30, 2035.  ASJS Aircraft Services, LLC will be financing the construction of its hangar through First Interstate Bank and has requested consent to assign its interest in the Lease to the Bank for security purposes.  The Lessor's Consent to Assignment of Lessee's Interest in Lease to Secure Bank Loan and a recordable Memorandum of Lease have been prepared for this purpose.   A copy of each of these documents in on file in the City Clerk's Office.

City Council may:

• Approve the Non-Commercial Aviation Ground Lease and Memorandum of Lease to ASJS Aircraft Services, LLC, and the Lessor's Consent to Assignment of Lessee's Interest in Lease to Secure Bank Loan to First Interstate Bank; or
• Disapprove the Non-Commercial Aviation Ground Lease and Memorandum of Lease to ASJS Aircraft Services, LLC, and the Lessor's Consent to Assignment of Lessee's Interest in Lease to Secure Bank Loan to First Interstate Bank.

The first year of this Lease will generate $5,742.60 of revenue for the City's Airport.  Subsequent years will be adjusted annually by the Department of Labor Consumer Price Index For All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics, for the previous twelve months to keep pace with annual inflation.

Staff recommends City Council approve the twenty-year Non-Commercial Aviation Ground Lease and Memorandum of Lease to ASJS Aircraft Services, LLC for the term commencing December 1, 2015 and terminating on November 30, 2035, and the Lessor's Consent to Assignment of Lessee's Interest in Lease to Secure Bank Loan  to First Interstate Bank.