The Transportation Security Administration (TSA) renewed a lease for office space in the Airport Terminal Building on December 11, 2017.  This Lease is for 1,961 square feet of office space on the second floor of the Terminal Building, and has a ten-year term, with the first five years a firm term.  The Lease commenced June 1, 2017, and expires on May 31, 2027.  TSA intends to add three additional rooms to this Lease, adding approximately 690 square feet.  TSA requires some minor improvements to the space prior to occupancy, and has agreed to reimburse the Airport for the cost of the improvements.  Amendment 1 provides TSA's authorization for reimbursement to the Airport for the tenant improvement costs for the three additional rooms.  Upon completion and acceptance of the improvements, a second amendment to the Lease will follow, to add the space to the Lease and revise the rental amount to include this additional space.

City Council may:

• Approve Amendment 1 to the Terminal Building Lease with the U.S. Government for the benefit of the TSA, authorizing TSA's reimbursement of tenant improvements in the amount of $6,044; or
• Disapprove Amendment 1 to the Terminal Building Lease with the U.S. Government for the benefit of the TSA, authorizing TSA's reimbursement of tenant improvements in the amount of $6,044.

The proposed improvements to the three additional rooms as requested by the TSA will cost $6,044.  Amendment 1 provides the authorization for TSA to reimburse the Airport for this amount. The enhanced space will generate approximately $33,109 more per year after the second amendment is approved at a later date.

Staff recommends that the City Council approve Amendment 1 to the Terminal Building Lease with the U.S. Government for the benefit of the TSA, authorizing TSA's reimbursement of tenant improvements in the amount of $6,044.