HomeMy Public PortalAboutAB 15-93 Hangar 544 Lease Transaction
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 15-93
Meeting Date May 28, 2015
AGENDA ITEM INFORMATION
SUBJECT:
Hangar 544 Lease Termination and Establishment of a New Lease
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
Parks and Recreation
FUNDING SOURCE:
Airport
/
Originator
Library
TIMELINE:
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
The owner of Hangar 544, Northwest Development Management Group LLC, has a sale pending and would like to request termination of the existing lease at the time of closing with a subsequent
request for establishment of a new lease to Loon Mountain Aviation LLC. The purchaser has been provided with a copy of the proposed lease, current Airport Rules and Regulations, and
Airport Minimum Standards. The buyer, Dave Looney, owns a Maul aircraft, which he plans to store within this hangar. The existing lease was entered into on September 13, 2013, for a
period of 20 years and is renewable for up to four (4) additional five (5) year terms. The proposed new lease stipulates a period of 20 years and is renewable for up to two (2) additional
ten (10) year terms. The annual lease rate will be aligned to the current rate, $.35 per square foot for both covered area and bare ground, resulting in an annual lease fee of $535.50
plus the annual CPI adjustment, and lease rate adjustments at 10, 20, and 30 years. Pending the Mayor’s approval and signature of the new lease, the City Clerk will record the document,
and keep a copy for the City’s records. We have requested a $200 transaction fee as a part of this process.
RECOMMENDED ACTION: Approve termination of the existing lease of Hangar 544 from Northwest Development Management Group LLC at the time of closing and subsequently approve the new
lease for Hangar 544 to Loon Mountain Aviation LLC, and authorize the Mayor to sign all necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION