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V. Should the lease provide for ground lease payments? <br />The Board recommended for all new lease agreements a ground lease payment by the <br />tenant of $0.12 per square foot of ground per year, adjusted every five (5) years by <br />an amount equal to the Consumer Price Index for the previous five (5) years. <br />VI. Should the lease place the burden for taxes, if any, on the hangar tenant? <br />Current lease is silent on taxes. <br />The Board reviewed the language which the City Attorney provided which was <br />derived from four (4) separate contracts for four (4) other airports. The purpose of <br />these clauses is to make sure if any taxes are ever due and payable on the property or <br />structure of the private hangars, then the responsibility for those taxes would be the <br />tenant's alone, and not the City. The Board understood it was the City Attorney's <br />intent to recommend such language to the City Council, and therefore wanted the <br />record to reflect it neither made a recommendation for or against such inclusion. <br />2. No taxes are paid. <br />VII. How much insurance should be required? <br />The Board debated the necessity for and amount of insurance to be required on such <br />hangars. The Board recommended to continue the general liability requirement. The <br />Board considered the issue of requiring occupants of private hangars to have full <br />coverage fire and casualty insurance on the hangar, equal to the value of the hangar. <br />After further discussion, the Board recommended that the lease not require the <br />occupant to have fire and casualty insurance at the expense of the occupant; rather, <br />the Board concluded that the City should pay the cost of such insurance on the hangar <br />if the City desired to have insurance coverage to protect the City's interest in the <br />hangar. <br />Page 3 of 3 <br />