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AI# 10834
Regular City Council Meeting
5.7.
07/12/2022:
Information
Agenda Item
Resolution - Aviation:
Consider a resolution authorizing the Mayor to execute a lease agreement, with Abilene Aero, Inc. d/b/a Lubbock Aero, at the Lubbock Preston Smith International Airport.
Item Summary
The City of Lubbock currently has a lease agreement with Abilene Aero, Inc. d/b/a Lubbock Aero for multiple properties located on the east side of the Airport. Lubbock Aero wishes to continue to lease the Executive Terminal and two Hangar Buildings under a new lease. Lubbock Aero is leasing the premises for the purpose of conducting commercial aviation activities of a fixed based operator (FBO). Rentals are as follows:
Premises
Monthly Revenue
Annual Revenue
Executive Terminal: 5,240 sq. ft. @ $6.17 per sq. ft. per year:
$2,694.23
$32,330.80
Hangar Building #108: 11,280 sq. ft. @ $1.618 per sq. ft. per year:
$1,608.34
$19,300.08
Hangar Building #302: 11,000 sq. ft. @ $1.618 per sq. ft. per year:
$1,483.17
$17,798.00
Total Land Area: 64,312 sq. ft. @ $.2034 per year:
$1,711.78
$13,081.06
Total Apron Area: 100,900 sq. ft. @ $.2034 per year:
$1,711.78
$20,541.37
The rental rate will be adjusted annually by the Consumer Price Index (CPI).
The term of the agreement will be for a period of 10 years commencing on the execution of this agreement and ending on July 31, 2032.
The term is commensurate with the amount of capital investment made by the lessee in the leased premises, consistent with the airport required FBO Capital Investment Schedule. Lubbock Aero will expend no less than $1,000,000 to improve the Executive Terminal, $100,000 to improve Hangar #108, and $100,000 to improve Hangar #302.
Airport staff and the Airport Advisory Board recommend a lease agreement with Abilene Aero, Inc. d/b/a Lubbock Aero at Lubbock Preston Smith International Airport.
Fiscal Impact
The lease will generate approximately $103,050.51 in annual revenue.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Kelly Campbell, Executive Director of Aviation
Airport Advisory Board
Attachments
Resolution Abilene Aero, Inc. d/b/a Lubbock Aero
Lease Agreement Abilene Aero, Inc. d/b/a Lubbock Aero
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