Consent 1.C.
Regular City Council Meeting
- Meeting Date:
- 10/10/2017
- TITLE
- Extension of Federal Aviation Administration (FAA) Garage/Shop Site Ground Lease Term
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Airport
Presentation:
No
PROBLEM/ISSUE STATEMENT
The City has, over the years, leased an 85-foot by 100-foot parcel of land to the FAA for its combination garage/shop. This facility is on the east end of the Airport, on the airfield side of the fence, and is used by the FAA as a support facility in the maintenance of the numerous FAA owned navigational aids and equipment that are located in and around the runway complex. This facility is used by the FAA to store equipment/supplies needed for the maintenance of the FAA owned navigational and radar equipment on the airfield. The existing Lease #DTFA11-02-L-00418 expired on September 30, 2017. The FAA is interested in extending the Lease for an additional five years.
ALTERNATIVES ANALYZED
↵City Council may:
- Approve a five-year extension of the FAA Garage/Shop Site Ground Lease; or
- Disapprove a five-year extension of the FAA Garage/Shop Site Ground Lease.
FINANCIAL IMPACT
The extended term of the Lease will generate $2,635 per year for the City. This rate was adjusted up from the previous rate by the Consumer Price Index-Urban Wage Earners and Clerical Workers (1982-84=100), the inflation index used for leases with any Federal agency.
RECOMMENDATION
Staff recommends that the City Council approve the extension of the FAA Garage/Shop Site Lease for an additional five years, commencing October 1, 2017 and expiring on September 30, 2022.