DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Lone Western Star Development, LLC at Stinson Municipal Airport
SUMMARY:
This Ordinance authorizes a lease agreement with Lone Western Star Development, LLC (Lone Western Star) for 159,286 square feet of ground space at Stinson Municipal Airport (Stinson). The company plans to design and construct a multi-hangar facility on two separate tracts of land for hangar condominiums at Stinson Municipal Airport. The individual hangar condos will be sold to unit owners who will have an ownership interest in the building for the duration of the lease for storage of aircraft and aircraft equipment.
Tract I will have a rental rate of $0.09 per square foot until the earlier of: 24 months after the effective date of the lease agreement; the receipt of the certificate of occupancy by the company; or, beneficial occupancy for the facility. The rental rate will then increase to $0.18 per square foot.
Tract II will have a rental rate of $0.09 per square foot until the earlier of: the start of the 31st month after the effective date of the lease agreement; the receipt of the certificate of occupancy by the company; or, beneficial occupancy for the facility. The rental rate then increase to $0.18 per square foot.
The term of the agreement is 40 years as long as construction for the facility on Tract II is initiated within 13 months of the commencement date of the lease agreement. If the construction has not begun on the facility by that date, then the term of the lease agreement is 25 years. The firm can terminate the lease agreement or relinquish one of the two tracts at any time with a 30-day written notice during the first 12 months.
BACKGROUND INFORMATION:
Lone Western Star Development approached the Aviation Department about building hangar condominiums at Stinson. For this type of land use, a developer desi...
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