From
Jan Hill
Title
New Airport Lease - Staggerwing Development #4 LLC
Presenter
Randy J. Byers, C.M., Airport Director
Recommended Action
Approve
Analysis
Staggerwing Development #4 LLC seeks to lease forty-six thousand eight hundred fifty-three (46,853) square feet of unimproved land at the Grand Prairie Municipal Airport. They plan to construct nine (9) new hangars of various sizes. The proposed hangars will be able to accommodate larger aircraft such as a King Air. There are currently no hangars of the type proposed available at any area airport.
Staggerwing Development #4 LLC may make seven (7) of the facilities available for sublease or assignment under terms that will be consistent with their lease and all City and FAA rules regulations. The other two will be occupied by the developers.
In order to facilitate the proposed development, an appropriation will be requested at a later date to fund the construction of a taxilane between hangar rows in the development and an extension of the existing taxiway to access the hangars. KSA Engineers, Inc. is currently designing the City’s portion of the project. In a separate City Council Communication, staff is requesting an amendment to the design contract with KSA Engineers, Inc., to include the bidding phase for the City’s portion of the improvements.
The term of this Lease shall be for a period of thirty years beginning January 1, 2015, and ending December 31, 2044. Lessee shall have an option for two (2) additional five (5) year terms with Lessor upon the expiration of the primary term of the lease and at a lease rate to be determined based on the rates then in effect for comparable space.
At its November 10, 2014 meeting, the Airport Advisory Committee unanimously recommended City Council approval of the new lease.
Financial Consideration
The rental rate for the leased area will be thirteen and one half cents ($ .135) per square foot per year for the 46,853 sq. ft., or $6,325.16 annuall...
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