HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/06/2004 - FIRST READING OF ORDINANCE NO. 114, 2004, AUTHORIZ ITEM NUMBER: 27
AGENDA ITEM SUMMARY DATE: July6, 2004
FORT COLLINS CITY COUNCIL STAFF: Dave Gordon
SUBJECT
First Reading of Ordinance No. 114,2004,Authorizing the Long-Term Lease of Property at the Fort
Collins-Loveland Municipal Airport to Robert and Linda Eggleston for the Construction of an
Aircraft Hangar.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The lease will initially generate$864 of annual income to the Airport. There are no additional City
expenses associated with this lease.
EXECUTIVE SUMMARY
The ground lease allows Eggelston to construct a 54 foot by 48 foot hangar for personal aircraft
storage. The land lease includes additional land around the hangar for use by the tenant. The ground
lease form agreement has been changed from past agreements. A review of the lease has been
conducted by Airport staff, City staff including attorneys and the Airport master plan consultant.
The recommendations from this review have been incorporated into the new agreement. The lease
changes are as follows: the lease rate has been increased from$.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 5-year
extensions versus 25 years and three 5-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 were used recently in the approved Russ Kamtz lease agreement and
will be used for similar ground leases for private hangars in the future.
ORDINANCE NO. 114, 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 ROBERT AND LINDA EGGLESTON
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 Latimer 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,Robert and Linda Eggleston have 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 it is in the best interests of the City to lease the property described in the
attached Exhibit "A" to Robert and Linda Eggleston upon the terms and conditions hereafter
referenced.
Section 2. That the Mayor is hereby authorized to enter into the long term lease of the
property described in Exhibit"A"to Robert and Linda Eggleston,in substantially the form entitled
"Lease Agreement,Cities of Loveland and Fort Collins,Colorado and Robert and Linda Eggleston"
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 6th day of
July, A.D. 2004, and to be presented for final passage on the 20th day of July, A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of July, A.D. 2004.
Mayor
ATTEST:
City Clerk
Exhibit A
Proposed Hangar Site Descriotion:
All that portion of the Northeast 1/4 of Section 33, Township 6 North, Range 68 West, of the 6th P.M.,
Larimer County, Colorado more particularly described as follows:
Considering the East line of the Northeast 1/4 of Section 33, Township 6 North, Range 68 West, of
the 6th P.M., Larimer County, Colorado as bearing S 00°31'31" E and with all bearings contained
herein relative thereto.
COMMENCE at the Northeast corner of Section 33, Township 6 North, Range 68 West, of the 6th
P.M., Larimer County, Colorado; thence run S 00"31'31" E along the East line of the Northeast 1/4 of
said Section 33 for a distance of 1122.08 feet; thence leaving said East line run S 89028'29" W for a
distance of 491.17 feet to the POINT OF BEGINNING; thence run S 70°01'13" W for a distance of
60.00 feet; thence run N 19°58'47" W for a distance of 48.00 feet; thence run N 70"01'13" E for a
distance of 60.00 feet; thence run S 19058'47" E for a distance of 48.00 feet to the Point of Beginning.
Containing 2880 square feet more or less.
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