HomeMy WebLinkAbout~Master - Renewing the Fixed Base Operator Management Contract with Central Ioiwa Air Service at the Ames Municipal Airport RESOLUTION NO. 22-367
RESOLUTION APPROVING LONG-TERM LAND LEASES FOR FIVE PRIVATE
HANGARS EFFECTIVE JULY 1, 2022, THROUGH JUNE 30, 2047
FOR THE CITY OF AMES, IOWA
WHEREAS, on June 30, 2022, land leases will expire for five private hangars at the Ames
Municipal Airport; therefore,new leases are necessary to continue the use of these facilities; and,
WHEREAS,the proposed leases will include rate schedules covering five,five-year periods
for a total of up to 25 years; and,
WHEREAS, all private hangar leases pay the same rate based on the square footage of their
respective buildings and the leases will go into effect on July 1, 2022, to coincide with the City's
fiscal year; and,
WHEREAS, because of the length of the land leases, Iowa Code requires that a public
hearing be held in advance of the approval and on June 14,2022,City Council set the public hearing
date; and,
WHEREAS, during the 2020 update to the Airport Master Plan, airport users requested a
change to the metric for establishing lease rates;therefore,the airport leases will be changing from
a lease parcel area to a building footprint square-footage as the metric for establishing lease rates;
and,
WHEREAS, this change is expected to bring the Ames Municipal Airport's private hangar
leases closer to current market rates and practice; and,
WHEREAS, it should be noted that this change will come with an initial reduction in
revenues; and,
WHEREAS, the Airport has two types of revenues, one from Airport Operations (hangar
leases,FBO Contract, and fuel flowage)and the other from the Airport Farm(land leases),and the
proposed lease calculation change is expected to result in a net loss of approximately$17,000; and,
WHEREAS,for FY 2022/23 and future fiscal years,the Airport is projected to operate with
a net positive budget; and,
WHEREAS, the leases are structured such that there is a set five-year rental rate based on
the respective size of each lessee's hangar, and that rental rate schedule is updated every five-year
rental period by establishing a new annual rental rate increase for that new five-year period by using
the Consumer Price Index for All Urban Consumers and other factors that may affect the Airport's
budget; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the long-term land leases for 1)Ames Hangar Club; 2) Brian Aukes; 3) Plane Crazy, LLC; 4)
Linda A. Sommerfeld; and 5) Viking Aviation, covering five, five-year periods, effective July 1,
2022, through June 30, 2047, are hereby approved.
ADOPTED THIS 28`h day of June, 2022.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Corrieri
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 28t'day of June, 2022.