Moore, Palmersheim and Tostenrud, L.L.C. desire to renew its Ground Lease and enter into a new West End Hangar Ground Lease on the parcel located at 2541 Overlook Drive.  In 2005, Moore, Palmersheim and Tostenrud, L.L.C. assumed a twenty- year Ground Lease from Martin Elshire on this 5,950 square foot parcel.  Mr. Elshire originally entered into the Ground Lease in 1996 and built a 3,600 square foot hangar on the parcel located in the general aviation area on the west end of the Airport.  The current Ground Lease expired April 30, 2016. The new West End Hangar Ground Lease is for a 6,300 square foot parcel, which includes additional space needed for vehicle parking.  The new West End Hangar Ground Lease is for a twenty-year term, commencing May 1, 2016 and terminating on April 30, 2036.
 

City Council may:

• Approve the new West End Hangar Ground Lease to Moore, Palmersheim and Tostenrud, L.L.C. for the term commencing May 1, 2016 and terminating on April 30, 2036; or
• Disapprove the new West End Hangar Ground Lease to Moore, Palmersheim and Tostenrud, L.L.C. for the term commencing May 1, 2016 and terminating on April 30, 2036.

The first year of the new West End Hangar Ground Lease will generate $1,348.20 of revenue for the City's Airport.  Subsequent years will be adjusted annually on the anniversary date of the Lease using 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 West End Hangar Ground Lease to Moore, Palmersheim and Tostenrud, L.L.C. for the term commencing May 1, 2016 and terminating on April 30, 2036.