The United States Department of Agriculture Animal and Plant Health Inspection Service (USDA-APHIS) currently subleases a hangar in the executive hangar area on the west end of the Airport, from which it conducts its wildlife services operations.  The Wildlife Service (WS) program in Montana focuses most of its efforts on managing the interface between livestock and wildlife.  The WS has also provided both technical and direct assistance to airports throughout Montana to identify and reduce potential safety hazards to the flying public and to the airlines. Currently, the USDA also subleases hangar space it shares with another tenant in the Airport Business Park to hangar its helicopter based at the Airport.  The USDA is in need of additional hangar space and desires to build a new hangar to house its aircraft.  The secured hangar will be constructed in the executive hangar area on the west end of the airfield.  The proposed hangar will be located on a 13,440 square foot parcel at 2445 Overlook Drive, in close proximity to the hangar it currently subleases in the executive hangar area, and will fulfill their need for non-shared, secured hangar space.  Staff has negotiated a twenty-year Ground Lease with the USDA, which will commence on March 1, 2011 and terminate on February 28, 2031.  Construction is slated to begin later this year.

The City Council may:

• Approve the Ground Lease with the USDA-APHIS; or
• Not approve the Ground Lease with the USDA-APHIS.
   

This Lease will generate $3,360.00 in the first year and will be adjusted annually for inflation by the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W), U.S. City Average, All Items Figure (1982-1984=100), published by the Bureau of Labor Statistics.

Staff recommends the City Council approve the twenty-year Ground Lease with the USDA-APHIS for a new hangar at the Airport.