HomeMy Public PortalAboutAB 15-101 Gem Air Commercial Lease Agreement
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 15-101
Meeting Date June 11, 2015
AGENDA ITEM INFORMATION
SUBJECT:
Gem Air Commercial Lease Agreement Approval Request
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
New Revenue - ~$1,800/year
Parks and Recreation
FUNDING SOURCE:
N/A
Airport
/
Originator
Library
TIMELINE:
Immediate
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
Gem Air is a commercial operation which provides revenue charter services within the region. This operator is interested in providing seasonal itinerant commercial charter operations
from the McCall Municipal Airport, where it will pick up and transport its passengers. The City of McCall has been approached by Gem Air for use of available space within Hangar 100
(Parks and Recreation Building) for the flow of passengers through the airport in McCall. Initially, the City of McCall proposed an annual lease for use of space within this building
however Gem Air has requested consideration for a monthly lease rate due to the fact that its operations on the airport will only occur during summer months. This request is therefore
to receive approval for a monthly lease of City space for four months each year (June – September) to Gem Air for completion of its commercial operations at the airport.
In accordance with the McCall Airport Minimum Standards for Commercial Operations, Gem Air has provided the enclosed application identifying its plans for meeting Minimum Standards for
a revenue charter and for also ensuring a safe and efficient commercial operation at the airport. This application will be presented to the AAC on 4 June and this group’s recommendation
will be provided to City Council during presentation of this agenda bill.
The space requested for use by Gem Air is mostly unutilized space for the Airport and Parks and Recreation. That said, to meet space requirements of the Minimum Standards (1,000 sq/ft),
one part-time Parks and Recreation employee will be relocated within the Parks and Recreation Building. In accordance with FAA compliance requirements, a fair market rental rate was
established at $600 per month and applied within the attached draft agreement. Therefore, anticipated revenue from a three-month agreement would total $1,800 per year for the airport.
RECOMMENDED ACTION: Approve commercial operations proposed by Gem Air and approve the enclosed commercial lease agreement, and authorize Mayor to sign any and all necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION