DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Cutter Aviation San Antonio, Inc at San Antonio International Airport
SUMMARY:
This Ordinance authorizes a lease agreement with Cutter Aviation San Antonio, Inc (Cutter) at San Antonio International Airport. The leasehold includes 16,054 square feet for Hangar 1, 10,848 square feet for Hangar 2 and 108,769 square feet of ground space. The term of the lease agreement is five years. The lease agreement is expected to generate $105,677.12 in annual revenue.
BACKGROUND INFORMATION:
Cutter sells aircraft and provides aircraft service and maintenance services at 367 Sandau. The firm has been located at San Antonio International Airport since 1998. The leasehold includes two hangars and ground space.
ISSUE:
City Council is required to authorize lease agreements. Approval of this lease agreement is consistent with City Policy to lease property to generate revenue.
ALTERNATIVES:
City Council could elect to not authorize the lease agreement with Cutter.
FISCAL IMPACT:
The annual rental rate per square foot for Hangar 1 and Hangar 2 respectively is $2.44 and $2.12 per square foot. The Ground space rate will be $0.40 per square foot. The annual revenue is $105,677.12, which will be deposited into the Airport Operating and Maintenance Fund.
|
Square Footage |
Annual Rate per Square Foot |
Annual Revenue |
Hangar 1 |
16,054 |
$2.44 |
$39,171.76 |
Hangar 2 |
10,848 |
$2.12 |
$22,997.76 |
Ground Space |
108,769 |
$0.40 |
$43,507.60 |
|
|
|
$105,677.12 |
RECOMMENDATION:
Staff recommends the authorization of a lease agreement with Cutter Aviation San Antonio, Inc. at San Antonio International Airport.