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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/05/2004 - SECOND READING OF ORDINANCE NO. 158, 2004, AUTHORI ITEM NUMBER: 17 AGENDA ITEM SUMMARY DATE: October 5, 2004 FORT COLLINS CITY COUNCIL STAFF: Dave Gordon SUBJECT Second 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 Second Reading. EXECUTIVE SUMMARY This Ordinance, which was unanimously adopted on First Reading on September 21, 2004. The ground lease allows TAS Enterprises to construct a 60 foot by 140 foot hangar for personal aircraft storage. 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, hie. 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 Sth day of O er,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 ITEM NUMBER: 18 AGENDA ITEM SUMMARY DATE: September 21, 2004 FORT COLLINS CITY COUNCIL STAFF: Dave Gordon SUBJECT First Reading of Ordinance No JE z g rmLease of Property at the Fort Collins-Loveland Municipal rport to Inc. r the Construction of an Aircraft Hangar. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The lease will initially general 0 u the tpport. There are no additional City expenses associated wit is leas 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 peCerpfice f pe or a ased premises; the rental rate is adjusted annually by the cons dex v u fiv ars now;the cities have the option of purchasing the improvemeno e e a n of the 1 se term; the lease term is 20 years with four(4) five-year extensions versus 2 years an three ( rve-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.