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Item 1.J.
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| City Council Regular | |
| Date: | 08/22/2022 |
| Title: | West End Hangar Ground Lease with First Interstate Bank |
| Presented by: | Kevin Ploehn, Director of Aviation and Transit |
| Department: | Airport |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends that City Council approve the West End Hangar Ground Lease with First Interstate Bank for a 25-year term commencing September 1, 2022, and ending August 31, 2047.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
First Interstate Bank (FIB) has been an Airport tenant since 1997. FIB currently has a Lease on a parcel of ground located at 2451 Overlook Dr. and constructed a hangar on this parcel when FIB first became an Airport tenant. FIB's Lease on this parcel was approved by the City Council on November 13, 2017, and expires on August 31, 2027.
FIB desires to also lease a parcel in the West End Large Hangar Area and to construct a new 120' x 100' hangar on the parcel. Staff has worked with FIB on a new 25-year West End Hangar Ground Lease for the 59,985 square foot parcel that will be located at 2513 Altimeter Drive. The new Lease will commence on September 1, 2022, and ends on August 31, 2047.
FIB desires to also lease a parcel in the West End Large Hangar Area and to construct a new 120' x 100' hangar on the parcel. Staff has worked with FIB on a new 25-year West End Hangar Ground Lease for the 59,985 square foot parcel that will be located at 2513 Altimeter Drive. The new Lease will commence on September 1, 2022, and ends on August 31, 2047.
ALTERNATIVES
City Council may:
- Approve the West End Hangar Ground Lease with First Interstate Bank for a 25-year term; or
- Not Approve the West End Hangar Ground Lease with First Interstate Bank for a 25-year term.
FISCAL EFFECTS
The initial year of this Lease will generate $17,395.68 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.