HomeMy Public PortalAboutAB 18-237 Lease Assumption Hangar 102McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 18-237
Meeting Date September 27, 2018
AGENDA ITEM INFORMATION
SUBJECT:
Request to Approve the Assumption of Hangar 102 Lease by Teton Leasing, LLC, and Terminate Aviation Properties, LLC’s interest in the lease at Time of Closing
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:
Teton Leasing, LLC (dba McCall Aviation) is in the process of buying Hangar 102 from Aviation Properties LLC and wishes to assume the existing lease. Additionally, Teton Leasing LLC
is requesting that the lease be assumed under the current terms to include the lease rate. The FY18 rate was $.275/sq ft covered ground and $.135 bare ground. This leasehold has 40,074
sq ft of bare ground and 7,300 sq ft covered ground making the lease amount $5,404.99 for the uncovered ground and $2,008.56 for covered ground for a total of $7,413.55. The lease has
a provision to adjust on the eighth anniversary (March 13, 2022) to the then current rate. The initial term of the lease ends March 13, 2034 with the opportunity for a 5-year lease
with a 3-year extension.
Exhibit F of the current lease (attached) provides the history of a pre-pay on this lease which results in an annual deduction of $3049.00 when the lease is invoiced.
As this is a commercial hangar, the request for assumption (attached) was reviewed by the Airport Advisory Committee (AAC). Teton Leasing provided information as to additional funds
generated by their business to offset the reduction in lease rate to include fuel flowage, rental car leasing, employment, etc. Teton Leasing intends to provide this briefing to Council
at this meeting. The AAC and staff recommend assigning the lease at the current terms.
RECOMMENDED ACTION:
Approve the assumption of the Hangar 102 lease by Teton Leasing, LLC, terminate Aviation Properties, LLC’s interest in the lease at time of closing, and authorize the Mayor to sign all
necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION