DEPARTMENT: Aviation
DEPARTMENT HEAD: Noel T. Jones
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Clayton Aircraft Services, LLC at Stinson Municipal Airport
SUMMARY:
This Ordinance authorizes a lease agreement with Clayton Aircraft Services, LLC for 2,488 square feet of hangar space and 5,800 square feet of ground space at Stinson Municipal Airport. The term of the agreement is for one year with the option to extend for one additional year. The lease agreement will generate annual revenue in the amount of $5,821.80.
BACKGROUND INFORMATION:
Clayton Aircraft Aviation, LLC specializes in aircraft maintenance and repair for general aviation and corporate aircraft. The firm has operated as a partner with Stinson Aviation at Stinson Municipal Airport with Stinson Aviation since March 1, 2014 and requested a direct lease. The term of the agreement would be for one year with the option to renew for an additional year.
The leasehold is located at 8547 Mission Road and includes Building 612/Hangar 8 which is 2,488 square feet and 5,800 square feet of ground space/ramp space.
ISSUE:
City Council authorization is required for lease agreement.
ALTERNATIVES:
City Council could elect to not approve this lease agreement. However, by not approving the lease agreement, Clayton Aircraft would have to identify a new location for their operations and the Airport would lose $5,821.80 in annual revenue.
FISCAL IMPACT:
The lease agreement will generate $5,821.80 in revenue that will be deposited into the Airport Operating and Maintenance Fund.
|
Leased Premises |
Square Footage |
Annual Rate per Square Footage |
Annual Rental |
|
Building 612/Hangar 8 |
2,488 |
$1.85 |
$4,602.80 |
|
Ground Space |
5,800 |
$0.21 |
$1,218.00 |
|
|
|
|
$5,821.80 |
RECOMMENDATION:
Staff recommends approval of a lease agreement with Clayton Aircraft Services, LLC at Stinson Municipal Airport.