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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/18/2004 - FIRST READING OF ORDINANCE NO. 082, 2004, AUTHORIZ ITEM NUMBER: 11 AGENDA ITEM SUMMARY DATE: May 18, 2004 FORT COLLINS CITY COUNCIL STAFF: Dave Gordon SUBJECT First Reading of Ordinance No.082,2004,Authorizing the Long-Term Lease of Property at the Fort Collins-Loveland Municipal Airport to Russ Kamtz for the Construction of an Aircraft Hangar. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The lease will generate$2,016 annual income to the Airport. There are no additional City expenses associated with this lease. EXECUTIVE SUMMARY The ground lease allows Mr. Kamtz to construct a 60 foot by 64 foot hangar for personal aircraft storage. The land lease includes additional land around the hangar for use by the tenant. The ground lease form agreement has been changed from past agreements. A review of the lease has been conducted by Airport staff, City staff including attorneys and the Airport master plan consultant. The recommendations from this review have been incorporated into the new agreement. The lease changes are as follows: the lease rate has been increased from$.15 per square foot per year to $.30 per square foot per year for all of the leased premises; the rental rate is adjusted annually by the consumer price index versus every five years now; the Cities have the option of purchasing the improvements prior to the expiration of the lease term; the lease term is 20 years with four(4)five- year extensions versus 25 years and three (3) five-year extensions. The new lease rate and annual rate adjustments were established from data collected by the Airport's master plan consultant. The consultant surveyed local airports and similar sized airports from across the nation to establish the recommended ground lease rate and adjustment schedule changes. The new agreement also includes ground around the hangar as leased premises instead of just the footprint of the building as is currently being done. The new lease form and rates will be used for similar ground leases for private hangars in the future. ORDINANCE NO. 082, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LONG-TERM LEASE OF PROPERTY AT THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT TO RUSS KAMTZ FOR THE CONSTRUCTION OF AN AIRCRAFT HANGAR WHEREAS,the Cities of Fort Collins and Loveland(the"Cities")jointly own and manage certain real property in Larimer County that is the site of the Fort Collins-Loveland Municipal Airport (the "Airport Property"); and WHEREAS, the Cities have set aside a portion of the Airport Property for lease to parties desiring to conduct aeronautical activities and support activities at the airport; and WHEREAS,pursuant to Section 23-111 of the Code of the City of Fort Collins,the Council is authorized to lease any and all interests in real property owned in the name of the City,provided that Council first finds that the lease is in the best interests of the City; and WHEREAS, the Intergovernmental Agreement for the Joint Operation of the Fort Collins- Loveland Municipal Airport between the Cities specifically recognizes the leasing of Airport Property as a valid use of the jointly owned Airport Property; and WHEREAS, Russ Kamtz has indicated a desire to lease a portion of airport property, described in the attached Exhibit "A", for the construction and maintenance of an aircraft hangar. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the proposed lease of the property described in the attached Exhibit "A" to Russ Kamtz upon the terms of the lease hereafter referenced, is in the best interests of the City. Section 2. That the Mayor is hereby authorized to enter into the long term lease of the property described in Exhibit "A" to Russ Kamtz, in substantially the form entitled "Lease Agreement, Cities of Loveland and Fort Collins, Colorado and Russ Kamtz" which is on file with the City Clerk of the City of Fort Collins, Colorado, subject to such modifications in form or substance as the Mayor, in consultation with the City Attorney, may deem necessary to effectuate the purposes of this Ordinance or to protect the interests of the City. 1 Introduced and considered favorably on first reading and ordered published this 18th day of May, A.D. 2004, and to be presented for final passage on the 1st day of June, A.D. 2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 1st day of June, A.D. 2004. Mayor ATTEST: City Clerk 2 . f 2|«@ . ■ ° Z ■ � k j mW - a g . , ! Acc ,moo •� bo .� }$ #! IJ ■, !/ OU ° g ® , n , ■ -€ ■�■ !� � `& no � � !� ��� �}|| ■�k , � � � |-2 -% §, , � .i | |h|| !_ ' .f` I f! !�§ |� �� 0 �( | O,|� 2|� ` ! : ® .&�! =2• !; �.« ,�; R a ■ to - in .; I ■ 3I' \ � alfON ■;!a || |#| ,.� �. . •�; ,ON ;; ;f| rig! � | ` | c|} $ -|- !1q ! !1m: | | |t! ! o � ji| | §Nz _. _a _. _. o._^A_ _wj _�_�� _V.ZO _-_-_ ! Ck - 2 SIN a2 | & ! , _, _ ■__ � R|� .¥ � . � H k ; - ! & % �� © ` � * Itco k ul ' ■ « , I Eva ; � �!d ■ �!�■ I ]kQ! | , • ®- -- -- —•_—_ _w'l nm��_�A _r= _-LO-_