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Item No. 8 <br />TO: Mayor & City Council <br />FROM: Grayson Path, City Manager <br />SUBJECT: GROUND LEASE AGREEMENT FOR PRIVATE HANGAR - COX FIELD <br />DATE: November 9, 2020 <br />BACKGROUND: Mr. Larry David Ervin is interested in building a private hangar at Cox Field <br />Airport and has requested a ground lease agreement in order to proceed with his project. <br />STATUS OF ISSUE: Mr. Ervin is proposing to construct a 60' x 70' hangar located north of the <br />existing Hangar M. The ground lease agreement is the template form, and is for a 40 -year period <br />at an annual payment of $840.00 based on the square footage. The city will retain ownership of <br />the land, and as is typical with a ground lease, once it expires the city can reclaim any fixed assets <br />remaining on the site. The FAA has approved of the proposed hangar location, and the airport <br />advisory board recommends approval of the attached ground lease with Mr. Ervin. <br />BUDGET: Upon completion, will generate new revenues at the airport. <br />RECOMMENDATION: Authorize the city manager to execute a ground lease agreement with <br />Mr. Larry David Ervin for construction of a private hangar at Cox Field Airport. <br />