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Item No. 10 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: AIRPORT HANGAR <br />DATE: August 29, 2018 <br />BACKGROUND: We have been working for a few months now on a hangar development <br />project with Dr. Colin Marino. Dr. Marino is a frequent user of Cox Field, and needs permanent <br />indoor storage for his airplane. <br />STATUS OF ISSUE: He proposes to construct a 60' x 100' hangar. The attached lease <br />agreement calls for a 40 -year term, with options for extensions totaling 50 years. This helps to <br />ensure investors can recoup their costs, since a typical useful life of many buildings is 40 years. <br />The city retains ownership of the land, and as it typical with a ground lease, once it expires the <br />city can reclaim any fixed assets left behind. <br />BUDGET: Upon completion, will generate new revenues of $10,800. <br />RECOMMENDATION: Authorize city manager to execute a ground lease, pending approval of <br />location by the airport advisory board. <br />