HomeMy Public PortalAboutAB 19-236 Hangar 101 Gem Air LeaseMcCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 19-236
Meeting Date November 7, 2019
AGENDA ITEM INFORMATION
SUBJECT:
Request to Approve the Gem Air Commercial Lease of Portions of Hangar 101
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
Income 10,252.80 Annual
Parks and Recreation
FUNDING SOURCE:
Airport
Originator
Library
TIMELINE:
January 2020
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
Gem Air, Inc., an organization providing air-taxi services at McCall Municipal Airport, has requested a 3-year lease on portions of Hangar 101. The lease will be in effect from January
1, 2020 until December 31, 2022. The lease rate was set at $.70 per month, per square foot, by a commercial real estate agent for comparable facilities. Gem Air will lease 450 square
feet of exclusive use space and 684 square feet of common use space, for a total leased space payment of $554.40
Gem Air will also three (3) parking spaces on the North-side of Hangar #101 and nine (9) spaces north of Hangar 100 at a cost of $25.00 per space per month. 12 spaces x $25 = $300.00
monthly.
The lease will generate revenues of $854.40 per month, or $7,689.60 in FY 20, $10,252.80 in FY 21, and $2,563.20 in FY 22.
A CPI adjustment requirement was not included due to: 1) the short term of the lease, and 2) staff time and cost spent on notifying, recordkeeping and billing the CPI adjustment will
probably be greater than the amounts received.
Attachment: Proposed Gem Air lease
RECOMMENDED ACTION:
Approve the lease between Gem Air, Inc. and the City of McCall and authorize the Mayor to sign all necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION