On February 28, 2011, the City Council approved a five-year Limited Commercial Aviation Building and Ground Lease with Jack Bolme.  During this time, Mr. Bolme subleased the hangar to the U.S. Department of Agriculture, Animal and Plant Health Inspection Services (APHIS).  The building is a sixty (60) foot by sixty (60) foot aircraft hangar on the west end of the Airport, and includes approximately 950 square feet of finished office space. The Airport's Lease with Mr. Bolme expired December 31, 2016.   Mr. Bolme has opted not to renew the Lease.  APHIS wishes to continue occupying the hangar.  The Lease has been in holdover status while staff negotiated a new Lease with the General Services Administration (GSA), the leasing agent for APHIS.  The new Lease will be for a ten-year term, with the first five years a firm term, and the second five years a non-firm term, which allows the Government to opt out of the Lease after the first five years. The Lease commences July 1, 2017 and expires on June 30, 2027.

↵City Council may:

• Approve a new ten-year Lease with the U.S. Government on behalf of APHIS; or
• Disapprove a new ten-year Lease with the U.S. Government on behalf of APHIS.

The rent for the first five years is a fixed rate, with the rent for the last five years to be re-calculated and determined no later than 90 days prior to the new rate effective date.  This Lease will generate $59,879.16 per year of revenue for the City's Airport, and $299,395.80 for the initial five-year term.  This rate is calculated on the basis of both office and hangar space, a method used for other tenants utilizing City owned executive hangars with both types of space.  Should APHIS opt to continue with the Lease for the second five years, a new rental rate would be determined for years 6-10 of the Lease term.

Staff recommends that the City Council approve the Lease with the U.S. Government for the benefit of the U.S. Department of Agriculture, APHIS for a new ten-year Lease beginning July 1, 2017 and ending June 30, 2027.