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AI# 11585
Regular City Council Meeting
5.29.
05/23/2023:
Information
Agenda Item
Resolution - Aviation:
Consider a resolution authorizing the Mayor to execute a lease agreement with Dera Holdings, LLC, for real property located at Lubbock Preston Smith International Airport.
Item Summary
Dera Holdings, LLC is requesting a lease of 65,946 square feet of land, for construction of an approximately 15,600 square-foot hangar on the east side of the airport. The rental rate is $0.2652 per square foot, per year, making the annual rent $17,488.88 to be paid in monthly installments of $1,457.41. The Consumer Price Index (CPI) will adjust the rental rate annually. The term will be for 37 years and will begin the day the agreement is approved by the City Council. The term is commensurate with the amount of capital investment made by the lessee in the leased premises, consistent with the airport required aircraft storage operator capital investment schedule.
Airport staff and the Airport Advisory Board recommend a lease agreement with Dera Holdings, LLC, to construct a new hangar at Lubbock Preston Smith International Airport.
Fiscal Impact
The lease will generate an additional $17,488.88 in annual revenue.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Kelly Campbell, Executive Director of Aviation
Airport Advisory Board
Attachments
Resolution - Dera Holdings, LLC
Lease Agreement - Dera Holdings, LLC
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