City Council Regular Meeting - Includes Action Taken


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    I.9       
Meeting Date: 09/07/2021  
Recommended by: Kevin Louis Prepared by: David Reffner, Airport Manager
Finance Director Review: Angele Ozoemelam  
City Attorney Review: Brett Wallace  
Approved by: Larry Rains Date Submitted: 08/04/2021
Type of Action Requested: Ordinance

SUBJECT:
Request Approval for Private Hanger Land Lease with Cannon Hill
RECOMMENDATION:
Staff recommends the Mayor and City Council authorize the City Manager to sign a land lease agreement between the City of Casa Grande and Cannon Hill for land that lies under lot # 8 within the Casa Grande Municipal Airport Private Hangar Lease Plan. 
DISCUSSION:
Staff has negotiated a land lease with Mr. Hill to lease lot # 8 as identified on the Casa Grande Municipal Airport Private Hangar Lease Plan to build and maintain a 3,025 square foot aircraft hangar on airport property.  Under the proposed lease agreement Mr. Hill will convey ownership of the hangar to the City at the end of the forty (40) year lease period or return the site to its original condition before construction as determined by the City.  Staff has negotiated a lease agreement that conforms to the lease agreements approved by the Mayor and Council when they approved previous airport land lease agreements.  The lease periods and rate structure were developed based on the direction recommended by the Airport Advisory Board.  The lease is structured for a period of thirty (30) years with an option to extend the lease for an additional ten (10) years period.  Staff has a site plan that identifies 12 private hangar lots.  If approved, this will be the tenth lease negotiated to date.
FISCAL IMPACT:
The initial lease charge of forty (40) cents per square foot includes the total hanger space plus an additional twenty (20) percent. This price was established by City Council and included in the City’s FY22 consolidated fee schedule. The initial annual income for this land lease will be $1,452.00. The fee will increase by five (5) cents per square foot every five (5) years.  At the end of the lease period, all assets can become the property of the City if we so choose.  Allowing this lease and construction will provide for additional fuel sales for the airport.
 
ALTERNATIVES:
Deny lease.
Renegotiate the terms of this lease.   
Attachments
Ord. 3294
Lease
Appendix A
Appendix B
Appendix C

  

    

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