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HomeMy Public PortalAboutAB 16-179 Airport Non-commercial lease Hangar 523McCALL CITY COUNCIL 216 East Park Street AGENDA BILL McCall, Idaho 83638 Number AB 16-179 Meeting Date July 28, 2016 AGENDA ITEM INFORMATION  SUBJECT: Hangar 523 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: $0 Parks and Recreation    FUNDING SOURCE:  Airport / Originator    Library    TIMELINE: Prior to July 30, 2016 Information Systems      Grant Coordinator    SUMMARY STATEMENT: The owner of Hangar 523, SEICO, 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 Bruce A. Hafenfeld and Sylvia J. Hafenfeld. The purchaser has been provided with a copy of the proposed lease, current Airport Rules and Regulations, and Airport Minimum Standards. The buyers, Bruce and Sylvia Hafenfeld own a Cessna 182 aircraft, which they plan to store within this hangar. The existing lease was entered into on December 5, 2014, for a period of 20 years and is renewable for up to two (2) additional ten (10) 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. Attached are the lease and legal description.  RECOMMENDED ACTION: Approve termination of the existing lease of Hangar 523 from SEICO, LLC at the time of closing and subsequently approve the new lease for Hangar 523 to Bruce A. Hafenfeld & Sylvia J. Hafenfeld, and authorize the Mayor to sign all necessary documents.  RECORD OF COUNCIL ACTION  MEETING DATE ACTION