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HomeMy WebLinkAbout~Master - Renewal of Airport Hangar Lease with Craig Sommerfeld RESOLUTION NO. 17-135 RESOLUTION APPROVING AIRPORT HANGAR LEASE RENEWAL WITH CRAIG SOMMERFELD FOR THE CITY OF AMES WHEREAS, the Ames Municipal Airport currently has land leases with six aircraft hangar owners;three of the six currently need renewal; and, WHEREAS, these leases have been renewed several times in the past with various contract lengths and terms; the City of Ames entered into a contract with Snyder & Associates Engineering to prepare an Airport Master Plan, and the firm completed an analysis of the current lease structures as part of the plan and recommended the current lease rates; and, WHEREAS, these leases are now being adjusted and renewed for another five-year period with forecasted rates being consistent with the adopted Airport Master Plan, and, WHEREAS, a general summary of the provisions within each lease include: the term of the lease, the facility is used for aviation purposes only, the lessees responsibility for all utilities, the lessees must own and maintain all structures on the leased area, the lessees agree to obey all applicable codes, laws, and adopted Minimum Operating Standards of the Ames Municipal Airport, the lessees are to provide proof of liability insurance, and there is a provision for early termination of the lease by either request of the lessee or by way of failure to pay the agreed lease amounts; and, WHEREAS, the annual adjustment in lease rates is the same for all of the land leases and increases by$0.005/square-foot/year; and, WHEREAS, below is a table showing general statistics about each lessee, as well as fees from the last year of the existing lease and the first year of the new lease; and, Lessee andArea(sq.ft.) Amount for 2016/1 mount for 2017/lE Term of Lease ears Viking Aviation, Inc. 13,600 $2,625.00 $2,693.00 5 Craig Sommerfeld 44,436 $8,587.00 $8,798.00 5 Kenneth Augustine 10,800 $2,084.00 $2,138.00 5 WHEREAS, it should be emphasized that the lease fee will be increased by $.005/square foot in each of the subsequent four years of the term; and, WHEREAS, Viking Aviation, Inc., Craig Sommerfeld, and Kenneth Augustine have agreed to the terms and rates established in these hangar leases and have signed them as required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the renewal of the hangar lease with Craig Sommerfeld at the Ames Municipal Airport for a five-year period is hereby approved. ADOPTED THIS 28' day of March, 2017. _Lfk� c Diane R. Voss, City Clerk Arm H. Campbell, Mayor Introduced by: Orazem Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 28' day of March, 2017.