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HomeMy WebLinkAbout~Master - Amendment to and Extension of the Aircraft Hangar Site Lease with Hap's Air Service RESOLUTION NO. 20-561 RESOLUTION APPROVING AN AMENDMENT TO AND EXTENSION OF THE AIRCRAFT HANGAR SITE LEASE WITH HAP'S AIR SERVICE FOR THE CITY OF AMES,IOWA WHEREAS,the current lease with Hap's Air Service was approved in December of 1992 and has a provision to extend the lease period for another 25 years; and, WHEREAS,rates forthis lease are adjusted every five years based on the market and other economic factors affecting the Ames Airport; and, WHEREAS,on July 31,2018,the City Council approved a two-year extension with Hap's service to allow on going land lease rate discussions to occur with our land lease tenants at the airport; and, WHEREAS, at the time,the City had just begun the update to the Airport Master Plan and issues such as making the land lease rates more competitive with surrounding airports were being investigated;and, WHEREAS,while past practice for the Ames Airport was to base lease rates according to the land area,it was found that current lease arrangements for the majority of other airports is for the lease rate to be based on the square footage of the hangar/buildings; and, WHEREAS, starting in Fiscal Year 2022/23, staff plans to have all lease renewals and new leases follow the current standard practice of establishing lease rates based on the footprint of the buildings,which will allow all private land leases at the Airport to start together under a new competitive market lease rate structure; and, WHEREAS,the amendment to Hap's lease establishes starting the new building footprint-based rate calculation in FY 2022/23 and a retroactive"bridge period"is included with the lease Amendment to hold constant the last year of their previous 25-year lease for three fiscal"bridge"years(FY 19/20,FY 20/21,and FY 21/22). NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the amendment to and extension of the 25-year Aircraft Hangar Site Lease including a bridge period for Hap's Air Service is hereby approved. ADOPTED THIS 27th day of October,2020. C��U U� Diane R. Voss, City Clerk John A. Haila,Mayor Introduced by: Gartin Seconded by: Betcher Voting aye: Beatty-Hansen,Betcher, Corrieri, Gartin, Junck,Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 27th day of October,2020.