HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/01/2004 - SECOND READING OF ORDINANCE NO. 082, 2004, AUTHORI ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: June 1, 2004
FORT COLLINS CITY COUNCIL STAFF: Dave Gordon
SUBJECT
Second Reading of Ordinance No. 082, 2004, Authorizing the Long-Term Lease of Property at the
Fort Collins-Loveland Municipal Airport to Russ Katz for the Construction of an Aircraft Hangar.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance,which was unanimously adopted on First Reading on May 18, 2004, authorizes the
long-term lease of property for the purpose of constructing a 60 foot by 64 foot hangar for Mr.Katz's
personal aircraft storage. The land lease includes additional land around the hangar for use by the
tenant.
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 Karatz" 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.
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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.
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Mayor
ATTEST:
AOL'L -6j
City Clerk
Passed and adopted on final reading this 1st day of June, A.D. 2004.
Mayor
ATTEST:
City Clerk
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ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: May18, 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.
f
RECOMMENDATION ( J F
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The lease will generate$2,016 annual income to the Airport. There are no additional City expenses
associated with this lease. T
EXECUTIVE SUMMARY
The ground lease allows Mr. Kamtz to construct a 60 foot by 64 foot hangar for personal aircraft
storage. The land lease includes additional land around the hangar for use by the tenant. The ground
lease form agreement has been changed from past agreements. A review of the lease has been
conducted by Airport staff, City staff including attorneys and the Airport master plan consultant.
The recommendations from this review have been incorporated into the new agreement. The lease
changes are as follows: the lease rate has been increased from$.15 per square foot per year to$.30
per square foot per year for al le a to ate is adjusted annually by the
consumer price index versusUryv ears w iti1! (
ve the option of purchasing the
improvements prior to the expf lea e ;the lerm is 20 years with four(4)five-
year extensions versus 25 yearee ve- exten
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.