TO: Mayor and City Council
THRU: Walt Wrede, City Manager
FROM: Sheri Hobbs, Personnel/Airport Terminal Manager
DATE: December 9, 2003
RE: Era Aviation, Inc. Lease Renewal
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Era Aviation has leased spaced at the airport terminal since 1993. Their lease will end on December 29, 2003. According to DOT and FAA regulations airport terminal leases cannot exceed five years.
We have just completed negotiations on a new lease for Era. The lease term is five years from December 30, 2003 to December 31, 2008. Era leases one designated air carrier area that includes, ticket counter, office, baggage and cargo area and a second air carrier office. A new lease was drafted that meets recent DOT regulations, combines Era’s existing two leases into one, increases the security deposit from 10% to 15% and also provides for a 10% increase in the rental rate. The lease also provides for annual rent adjustments based on the Consumer Price Index.
RECOMMENDATION: Recommend City Council approve Era Aviation lease and authorize the City Manager to sign.
FISCAL IMPACT: Annual rent of $45,799.56 to general fund.