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Item 1.I.
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| City Council Regular | |
| Date: | 08/22/2022 |
| Title: | Limited Commercial Aviation Building and Ground Lease with Alpine Air Express, Inc. for Hangar IP-5 |
| Presented by: | Kevin Ploehn, Director of Aviation and Transit |
| Department: | Airport |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends that City Council approve the Limited Commercial Aviation Building and Ground Lease with Alpine Air Express, Inc. for a five-year term beginning November 1, 2022, and ending October 31, 2027.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Alpine Immobilien, LLC, now known as Alpine Air Express, Inc. (Alpine) has leased the Airport's IP-5 hangar space since the 1990s. The current Lease expires on October 31, 2022. Alpine wishes to continue to lease its current space in IP-5, located in the Airport Business Park. The IP-5 Building is approximately 9,000 square feet, used for aircraft maintenance and storage, and is one of Alpine's busiest maintenance facilities in the Northwest. Staff has worked with Alpine on a new five-year lease that will expire on October 31, 2027.
ALTERNATIVES
City Council may:
- Approve the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation Express, Inc.; or
- Not Approve the Limited Commercial Aviation Building and Ground Lease with Alpine Aviation Express, Inc.
FISCAL EFFECTS
The initial year of this Lease will generate $55,504.80 of rental revenue for the Airport. Lease rentals in subsequent years will be adjusted on an annual basis on the anniversary date, 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.