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Item 1.J.
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| City Council Regular | |
| Date: | 04/12/2021 |
| Title: | Limited Commercial Aviation Building and Ground Lease with Billings Clinic – Lot 1 |
| Presented by: | Kevin Ploehn, Director of Aviation and Transit |
| Department: | Airport |
| Presentation: | No |
RECOMMENDATION
Staff recommends that the City Council approve the renewal of the Limited Commercial Aviation Building and Ground Lease with Billings Clinic for a five-year term beginning March 1, 2021 and ending February 28, 2026.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Billings Clinic desires to renew the Limited Commercial Aviation Building and Ground Lease it has utilized for the past twenty years. The Billings Clinic is asking for an additional five-year lease term for this City owned hangar property, located in the Executive Hangar area on the west end of the Airport at 2421 Overlook Drive. This is one of two hangars the Billings Clinic leases at the Airport. Billings Clinic currently utilizes this 60' x 80' square foot hangar to operate its emergency flight service functions, including office space, pilot quarters, and the storage, maintenance, and preparation of its fixed wing aircraft for the transport of seriously ill patients to and from distant locations. The Lease commences March 1, 2021 and terminates on February 28, 2026.
ALTERNATIVES
City Council may:
- Approve the new five-year Limited Commercial Aviation Building and Ground Lease with Billings Clinic; or
- Not Approve the new five-year Limited Commercial Aviation Building and Ground Lease with Billings Clinic.
FISCAL EFFECTS
This five-year Lease will generate $29,859.00 in annual revenue in the first year, with lease rentals in subsequent years adjusted on an annual basis using the average of the monthly percentage increases for the previous calendar year, as determined by the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics.