21 - Airport Hangar Lease Agreement

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Item No. 21 memorandum TO: Mayor & City Council Gene Anderson, Interim City Manager FROM: Carla Easton, PE, Engineering & Community Development Director SUBJECT: AIRPORT LEASE AMENDMENT DATE: January 17, 2020 BACKGROUND: In 2018, at the recommendation of staff and the airport board, the city council approved of a new lease agreement for hangar leases at Cox Field. While the agreement was reviewed at length by the board and open to public input prior to its approval, it was not well received by the lessees upon renewal of their lease agreements. Several concerns were brought to the board for consideration in September and discussed in detail in October of 2018. STATUS OF ISSUE: The airport board asked staff to address two issues with the lease language. First, to add a clause allowing a 30 day notification for termination of the agreement by the tenant, or an "opt out" clause. Second, to remove reference to a permit issued at the airport, seeing as it is not current practice to issue a permit. An amendment has been drafted to address these two issues, and upon approval by city council, will be attached to each lease agreement. The airport board approved of this amendment at the January 16th meeting. RECOMMENDATION: Approve of an amendment to the hangar lease agreement.