11-A-2&3 Airport Report - Laserfiche WebLink

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had ground leases incident to those hangars. All but one other city and the City of Paris required the payment of ground lease rentals. The amount of the ground lease rental payment varied considerably, from as low as $.07 per square foot per year to amounts based on the actual appraisal of the property. A number of the leases charged a ground lease in the neighborhood of $.10 to $.12 per square foot per year, with a CPI adjustment at some time interval. The terms of the leases also varied, there is no mention of options for extension. Terms were anywhere from ten (10) years to forty-five (45) years, with the majority of the lease terms from twenty (20) to thirty (30) years. All of the leases with the exception of one other city and the City of Paris had language in the leases requiring the lessee to be responsible for any taxes assessed, if any, as a result of the leasehold arrangement. All the leases had a provision for the ownership of the hangar to pass to the city at the expiration of the lease; most of the leases provided for an outright transfer at the end of the lease, while some had provisions dealing with some financial adjustment related to the transfer. With regard to insurance, some requirements were quite significant as to the amount of insurance required; others were less stringent. A discussion of the Airport Advisory Board information will be at a later time in this Agenda Information Sheet. IV. Issues with regard to a policy for private hangars. A series of issues were submitted to the Airport Advisory Board, as well as presented to the airports that were surveyed, for consideration in developing a more definitive policy for private hangars. A blank issue page is appended to this Agenda Information Sheet as Exhibit 4. Exhibit 4 was the document utilized in surveying other cities, as well as soliciting the recommendations from the Airport Advisory Board. Reference in this section will be made to Exhibit 2, the current policy; Exhibit 3, the survey of other cities; and Exhibit 5 attached hereto, the recommendations of the Airport Advisory Board. 1. Term length. a. Current Policy - minimum primary term twenty-five (25) years with two (2) ten (10) year options; maximum primary term forty-five (45) years with two (2) fifteen (15) year options. Total possible terms of forty-five (45) years to seventy- five (75) years. Considerations in setting the term includes size of hangar, type and number of aircraft, use of the hangar and aircraft, and estimated income to the airport. b. Survey Results - consists primarily of fixed primary terms without options. The terms are from ten (10) year to forty (40) years, with the predominate term twenty (20) to thirty (30) years. -3-