HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2004 - FIRST READING OF ORDINANCE NO. 158, 2004, AUTHORIZ ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: September21, 2004
FORT COLLINS CITY COUNCIL STAFF: Dave Gordon
SUBJECT
First Reading of Ordinance No. 158,2004,Authorizing the Long-Term Lease of Property at the Fort
Collins-Loveland Municipal Airport to TAS Enterprises, Inc. for the Construction of an Aircraft
Hangar.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The lease will initially generate$4,620.00 of annual income to the Airport. There are no additional
City expenses associated with this lease.
EXECUTIVE SUMMARY
The ground lease allows TAS Enterprises to construct a 60 foot by 140 foot hangar for personal
aircraft storage. 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
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 was done with past leases.
The new lease form and rates were used recently in the approved Russ Kamtz and Bob Eggleston
lease agreements and will be used for similar ground leases for private hangars in the future.
ORDINANCE NO. 158, 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 TAS ENTERPRISES, INC.
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, TAS Enterprises, Inc. 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 TAS Enterprises, Inc. 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 TAS Enterprises,Inc.,in substantially the form entitled"Lease
Agreement, Cities of Loveland and Fort Collins, Colorado and TAS Enterprises,Inc.,"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.
Introduced and considered favorably on first reading and ordered published this 21 st day of
September,A.D. 2004, and to be presented for final passage on the 5th day of October,A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of October, A.D. 2004.
Mayor
ATTEST:
City Clerk