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Item No. 18 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: AIRPORT HANGAR LEASE POLICY <br />DATE: September 8, 2015 <br />BACKGROUND: The airport advisory board has for a very long time discussed and debated <br />making changes to the existing airport hangar lease documents. Some members believe the lease <br />is too complicated and onerous, and may therefore be a hindrance to individuals constructing <br />new hangars at Cox Field. <br />STATUS OF ISSUE: As a first step, at its last meeting the board approved recommending a new <br />ground lease policy for privately -built hangars for consideration by the city council. There are <br />three major changes in the new recommended policy: The basic lease period would be extended <br />from 25 years to 40 years, the lease cost per square foot would be increased from $0.25 to $0.40, <br />and some of the insurance requirements are reduced. <br />The policy is not the same thing as the lease agreement, but only the basis therefor. The board <br />plans to bring back changes to the actual ground lease document at a later date. <br />BUDGET: NA <br />RECOMMENDATION: Approve recommended policy. <br />