The Transportation Security Administration (TSA) wishes to continue to lease office space in the Airport Terminal Building.  The most recent Lease was approved by the City Council in 2012 and expired on May 31, 2017.  The 2012 Lease has been in holdover since the May expiration, and TSA has continued to pay for and occupy the space while staff worked with the General Services Administration (GSA) on a Lease renewal for the TSA.  The new Lease is for 1,961 square feet of office space on the second floor of the Terminal Building, and will be for a ten-year term, with the first five years a firm term.  The Lease commences June 1, 2017 and expires on May 31, 2027.

↵City Council may:

• Approve the Terminal Building Lease renewal with the U.S. Government for the benefit of the TSA; or
• Disapprove the Terminal Building Lease renewal with the U.S. Government for the benefit of the TSA. 

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 less than 90 days prior to the new rate becoming effective.  The Lease will generate $94,096.68 of annual revenue for the City's Airport and $470,483.40 for the initial firm five-year term.  A new rental rate would be determined for years 6-10 of the Lease if the TSA opts to continue with the Lease for the additional five years.

Staff recommends Council approve and the Mayor sign the Terminal Building Lease renewal with the U.S. Government for the benefit of the TSA.