Action 15.
Regular Board of Supervisors Meeting - 10:00 am
Development Services
- Meeting Date:
- 07/01/2025
- Title:
- Amended BDI Rancho Relaxo Films lease agreement (Hanger 3)
- Submitted By:
- Christine McLachlan, Development Services
- Department:
- Development Services
Presentation:
PowerPoint
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
1
NAME
of PRESENTER:
of PRESENTER:
Christine McLachlan
TITLE
of PRESENTER:
of PRESENTER:
Development Services Director
Docket Number (If applicable):
Mandated Function?:
Not Mandated
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Approve amended Lease Agreement between Cochise County (“Lessor”) and Rancho Relaxo Films, an Arizona Subchapter S corporation (“Lessee”), for $3,750 per quarter minus cost for improvements performed by Lessee as described in the agreement, for a 15-year term of Hangar III at the Bisbee-Douglas International Airport, effective July 1, 2025, to May 30, 2040.
Background:
Rancho Relaxo Films, an Arizona Subchapter S corporation, wishes to enter into a lease agreement with Cochise County for the use of Hangar III, located at the Bisbee-Douglas International (BDI) Airport. This lease formalizes the use of Hangar III as a movie sound studio and sound stage. This is a 15-year lease agreement. The proposed agreement would formalize the terms under which Rancho Relaxo Films will lease and improve Hangar III for their commercial operations. It amends/replaces the lease agreement previously approved by the Board of Supervisors during the April 22, 2025 meeting. BDI is a federally obligated airport, Federal Aviation Administration (FAA) approval is required for non-aeronautical use leases on airport property. The signed lease agreement and market rate study were transmitted to FAA on April 23, 2025. The FAA requested specific changes to the lease language to better comply with non-aeronautical interim use on airport property. Those changes were incorporated into the attached lease agreement. The amended lease agreement was reviewed and approved by the FAA on June 17, 2025. Staff will provide a brief presentation that highlights key provisions of the lease and changes to the lease following prior approval of the board.
Department's Next Steps (if approved):
Record lease agreement and insurance information
Impact of NOT Approving/Alternatives:
The facility will remain unleased.
To BOS Staff: Document Disposition/Follow-Up:
Provide a copy of the signed lease agreement to Christine McLachlan