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AI# 10836
Regular City Council Meeting
5.9.
07/12/2022:
Information
Agenda Item
Resolution - Aviation:
Consider a resolution authorizing the Mayor to execute a non-aeronautical lease agreement, with Marco Steel & Aluminum Co., for the lease of warehouses and premises for storing and processing steel and steel products at the Lubbock Preston Smith International Airport.
Item Summary
Marco Steel & Aluminum Co. has leased 3 warehouse buildings and associated land at the Lubbock Preston Smith International Airport since 2011, and is requesting continuation under a new lease agreement. The building rental rate is $1.40 per square foot, per year, making the annual rental $67,200, to be paid in monthly installments of $5,600. The land rental rate is $0.249 per square foot, per year, making the annual rental $4,033.80 to be paid in monthly installments of $336.15.
The rental rate will be adjusted annually by the Consumer Price Index (CPI). The initial term of the agreement will be for a period of 5 years, commencing on the execution of this agreement and ending on July 31, 2027, with the option to extend the agreement for 2 additional three-year periods.
Airport staff and the Airport Advisory Board recommend a non-aeronautical lease agreement with the Marco Steel & Aluminum Co.
Fiscal Impact
The lease will generate non-aeronautical annual revenue of $71,233.80.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Kelly Campbell, Executive Director of Aviation
Airport Advisory Board
Attachments
Resolution - Marco Steel & Aluminum
Marco Steel Lease Agreement
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