B & J Properties Limited, LLC (B & J) acquired the hangar at 2415 Overlook Drive and has been leasing the underlying 39,072 square foot ground parcel since 2008.  This primary Non-Commercial Aviation Ground Lease is set to expire on March 31, 2020.  B & J desires to continue leasing this parcel and renew its Lease.  Staff has worked with B & J on a new Lease for this primary parcel, for a ten-year term beginning April 1, 2020 and terminating on March 31, 2030.
 
B & J has subleased its hangar to Corporate Air DBA SkySource Aviation, and indicates that SkySource Aviation is in need of additional automobile parking spaces for its employees.  Staff has identified a 4,536 square foot parcel across from the primary leasehold that may be used for the overflow parking.  A second auxiliary Non-Commercial Aviation Ground Lease has been created for this additional parking area, also for a ten-year term beginning April 1, 2020 and terminating on March 31, 2030.  The auxiliary Lease has a 30-day cancellation clause in the event the auxiliary parcel is needed for a future hangar development.
 

City Council may:

• Approve the two Non-Commercial Aviation Ground Leases with B & J; or
• Disapprove the two Non-Commercial Aviation Ground Leases with B & J.

The primary Lease will generate $11,330.88 in its first year. The auxiliary Lease will generate $1,315.44 in its first year.  Annual rent on both Leases will be adjusted each year on the anniversary date by 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 that City Council approve both Non-Commercial Aviation Ground Leases with B & J for terms beginning April 1, 2020 and ending March 31, 2030.