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.
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