From
Elsa Delgado
Title
Long-Term Ground Lease Agreement for Hangar Construction and Aircraft Storage for Staggerwing Development #5 LLC for a period of thirty (30) years beginning February 1, 2019 and ending December 31, 2049 for an annual income of $9,453.96, payable in monthly installment of $787.83
Presenter
Mark J. Divita, C.M., Airport Director
Recommended Action
Approve
Analysis
Staggerwing Development #5 LLC desires to lease a tract of land which is part of the Airport for the purpose of constructing, maintaining and operating an aircraft storage hangar seeks to lease fifty two thousand five hundred twenty two (52,522) square feet of unimproved land at the Grand Prairie Municipal Airport. One hangar is authorized to be constructed under this lease, the hangar will have three separate hangar units inside the building consisting of hangar units 27S-A, 27S-B, and 27S-C.
The term of this Lease shall be for a period of thirty (30) years beginning February 1, 2019, and ending December 31, 2049. Lessee shall have an option for two (2) additional five (5) year periods upon the expiration of the initial term of the Lease at the rates for unimproved ground leases then in effect in the Airport 's Fees Schedule.
Financial Consideration
Lessee will an initial rental rate of eighteen cents ($0.18) per square foot per year for the fifty two thousand five hundred twenty two (52,522) square feet, or Nine thousand four hundred fifty three dollars and ninety six cents ($9,453.96) annually, payable in monthly installments of seven hundred eighty seven dollars and eighty three cents ($787.83). In addition, Lessee shall pay Twenty Dollars ($20.00) per month per hangar unit for trash removal. Rental rates for this lease will be in accordance with the Schedule of Rates and Charges approved by the City Council of the City of Grand Prairie for Grand Prairie Municipal Airport. The monthly rental rates may be adjusted annually on October 1 to rates then in effect as established by the Grand Prairie City Council. Trash removal fees may be adjusted annually to that amount in effect for other private or corporate tenants.