HomeMy Public PortalAboutAB 23-072 Hangar 707 The Sherman Group
McCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 23-072
Meeting Date April 13, 2023
AGENDA ITEM INFORMATION
SUBJECT:
Request to Terminate assumed lease from 2010 and Approve new lease on Hangar 707 for the Sherman Group, LLC
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
Revenue: $4690.50 + CPI per annum, new lease fee $300, $50 lease termination fee
Parks and Recreation
FUNDING SOURCE:
none
Airport
Originator
Library
TIMELINE:
April 13, 2023
Information Systems
Grant Coordinator
SUMMARY STATEMENT:
The Sherman Group, LLC, Miller Family Holdings, LLC, assumed a lease on Hangar 707 on Dec. 15, 2010. The original lease was issued to Kris E. Cox on May 1, 2002. The Sherman Group, LLC.
was recently made aware that they are in the second year of the first five-year extension of their assumed lease. In lieu of continuing with extensions to the original lease from 2002,
the Airport Manager encouraged the lessee to start a new lease with current and approved language.
The 2020 Airport Rates and Charges Resolution sets the lease rate at $.3127 per square foot per annum. The hangar and bare ground totals 15,000 square feet. A CPI adjustment will occur
retroactively for October 1, 2023 and will be invoiced at the newly calculated rate when annual hangar invoices are issued in November.
Representatives of the Sherman Group, LLC have been provided with a copy of the current lease, current Airport Rules and Regulations, and Airport Minimum Standards. The City Clerk will
record the document and keep a copy for the City’s records. The lessee will pay a $50 lease termination fee and a $300 new lease fee per the city’s approved fee schedule. The new lease
has been reviewed by the City Attorney. The Airport Advisory Committee has reviewed the request and recommends that City Council approve The Sherman Group, LLC’s lease termination and
approve The Sherman Group, LLC’s new lease on Hangar 707.
Attachments: Hangar 707 Lease Termination – Sherman Group, LLC; Hangar 707 New Lease – Sherman Group, LLC; H707 location map/survey; Airport Minimum Standards, Rules and Regulations,
and Rates and Fees
RECOMMENDED ACTION:
Approve The Sherman Group, LLC’s lease termination on Hangar 707, approve The Sherman Group’s new lease on Hangar 707 and authorize the Mayor to sign all related documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION
12/17/2020
Resolution 20-23, AB 20-311, Airport Rates and Charges
12/16/2010
AB 10-275 Hangar 707 Assignment