DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Alamo Helicopter Tours San Antonio LLC at Stinson Municipal Airport
SUMMARY:
This Ordinance authorizing a lease agreement with Alamo Helicopter Tours San Antonio LLC for two suites in the terminal of Stinson Municipal Airport for a term of three years with the option to extend for two, one-year periods.
BACKGROUND INFORMATION:
Alamo Helicopter Tours San Antonio, LLC is a tenant at the Stinson Municipal Airport Terminal Building. It offers aerial sightseeing tours of San Antonio and the surrounding areas as well as a professional helicopter training program.
The term of the lease agreement is for three years with an option to extend for two, one-year periods. Alamo Helicopter is leasing two suites, 103 and 104, for a total square footage of 570.
ISSUE:
Approval of this action is consistent with the City's policy to lease City-owned property to generate revenue.
ALTERNATIVES:
City Council could direct staff to issue Request For Proposals for the leasehold. However, this action would require Alamo Helicopter to relocate to a new location. The lease agreement generates $7,506.70 per year.
FISCAL IMPACT:
The annual rental rate will be $10.00 per square foot for Suite 103 and $12.00 per square foot for Suite 104. The projected annual revenue to the City is $7,506.70. This revenue will be generated in the Airport Operating & Maintenance Fund.
Description |
Square Footage |
Annual Rate/sq. ft. |
Annual Rent |
Suite 103 |
154 |
$10.00 |
$1,540.00 |
*Common Area Maintenance for Suite 103 |
154 |
$ 1.71 |
$263.34 |
Suite 104 |
416 |
$12.00 |
$4,992.00 |
* Common Area Maintenance for Suite 104 |
416 |
$ 1.71 |
$ 711.36 |
TOTAL |
570 |
|
$7,506.70 |
* Per City Ordinance a monthly charge for common area maintenance not to exceed 25% of monthly rent will be assessed. The rate is subject to adjustment each October 1.
RECOMMENDATION:
Staff recommends the authorization of a lease agreement with the Alamo Helicopter at Stinson Municipal Airport for a period of three years with the option to extend for two, one-year periods.