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City Council Meeting <br />August 13, 2001 <br />Page 19 <br />by Councilman Bell, to leave the economic incentives to the Paris Economic <br />Development Corporation and have no living quarters in hangars other than for <br />over-night. The motion carried 7 ayes, 0 nays. <br />The City Attorney said the next issue was dealing with the specific beginning <br />and ending date of construction of a private hangar. He advised that the current <br />policy has no requirements as to how long, once the lease is entered into, the <br />lessee has to build the hangar. The survey indicated that they do require a <br />beginning and ending date for construction of a private hangar. The Board's <br />recommendation was that each lease require the construction of the hangar to <br />be completed within eighteen months. <br />A motion was made by Councilman McCarthy, seconded by Mayor Pro Tem <br />Manning, to accept the recommendation of the Airport Advisory Board. The <br />motion carried 7 ayes, 0 nays. <br />City Attorney Schenk said the next issue was the ground lease payment and he <br />explained that this involves the lease of the ground on which the improvement <br />is located. The City Attorney advised that the only compensation that the city <br />receives is the hangar itself when the lease expires. He said that almost all of <br />the cities require the payment of ground lease payments for private hangars, <br />and also indicated from TxDot that future leases should include the <br />requirement for ground lease payments. City Attorney Schenk told the City <br />Council that the survey shows the ground lease charge anywhere from a nickle <br />per square foot per year to being based on the appraised value. He further <br />advised that the Board recommendation was for a ground lease payment of <br />$0.12 per square foot per year adjusted every five years from the Consumer <br />Price Index adjustment, and advised this is for future leases only. <br />A motion was made by Councilman Bell, seconded by Mayor Pro Tem <br />Manning, to accept the recommendation of the Airport Advisory Board. The <br />motion carried 7 ayes, 0 nays. <br />