On January 19, 2018, Staff received a proposal from American Pilot Academy, Inc. (APA), for a new Hangar and Ground Lease Agreement , for Lease Sites 22S and 23S at Fort Worth Meacham International Airport. APA has agreed to execute a new 10 year Lease Agreement for Lease Sites 22S and 23S. Lease site 22S is comprised of approximately 4,500 square feet of ground space and includes a 4,550 square foot hangar. Lease Site 23S is comprised of approximately 4,500 square feet of ground space and includes a 4,300 square foot hangar. Staff requests that the City Council authorize the execution of a Hangar and Ground Lease Agreement for an initial term of ten years, to commence on March 20, 2018, and expire on March 19, 2028. The Lease will include two ten-year options to renew for an additional 20 years, bringing the total lease term to 30 years. As a part of the Agreement, APA will be required to complete a number of mandatory improvements for both hangars, including, but not be limited to: painting of the hangar exterior, including gutters, trim and downspouts; submitting a plan for use of interior office/storage space; and identifying and submitting a plan to accommodate parking needs.
The total revenue received from both leases will be approximately $29,963.00 annually or $2,496.91 per month. These revenues are based on a hangar rate of $3.50 per square foot for hangar 22S, $3.25 per square foot for hangar 23S, and a ground rental rate of $0.42 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges and Lessor's market analysis. Rental rates shall be subject to an increase on October 1 of any given year, based on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-year rate adjustments will apply for the ground rate starting on October 1, 2023 and every fifth year thereafter. The hangar rate will be adjusted every 10 years during the lease term, equal to the then Fair Market Value, as determined by the Lessor' s market analysis. ADVISORY BOARD APPROVAL: On March 15, 2018, the Aviation Advisory Board voted to recommend that the City Council approve this action. Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2. |