DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Stinson Aviation Corporation at Stinson Municipal Airport
SUMMARY:
This Ordinance authorizes a lease agreement with Stinson Aviation Corporation at Stinson Municipal Airport. The leasehold includes 2,488 square feet of building space and 5,800 square feet of ground space and will generate $5,563.76 in annual revenue. The term is for one year with the option to extend for an additional year.
BACKGROUND INFORMATION:
Stinson Aviation Corporation is in the medical equipment rental and sales industry. The leasehold includes 2,488 square feet of building space and 5,800 square feet of 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 this lease agreement.
FISCAL IMPACT:
The annual rental rate is $1.77 per square foot for building space and $0.20 per square foot for ground space. The lease agreement is expected to generate $5,563.76 in annual revenue which will be deposited into the Airport Operating and Maintenance Fund.
|
Sq. Ft. |
Annual Rate/Sq. Ft. |
Annual Rental |
Ground Space |
5,800 |
$0.20 |
$1,160.00 |
Hangar Space |
2,488 |
$1.77 |
$4,403.76 |
Total |
|
|
$ 5,563.76 |
RECOMMENDATION:
Staff recommends the authorization of a lease agreement with Stinson Aviation Corporation at Stinson Municipal Airport.