Subject
This action will facilitate a new ground lease at the airport to accommodate hangar construction for an agricultural aerial spraying operation.
Summary and Background
The Hermiston Airport leases ground at standard terms of 20 years, with two 5 year extensions to a number of private commercial and non-commercial users to allow for the construction of hangars for their aircraft.
This lease is substantially identical in length and price per square foot to all other existing ground leases at the airport.
K2 Aerial Application, LLC has been operating from the Hermiston airport for 5 or 6 years, and is now seeking to construct a hangar.
The lease area conforms with the updated/approved 2020 Airport Master Plan, and has been reviewed and approved by the Airport Manager, Airport Engineer, and Airport Advisory Committee.
Tie-In to Council Goals:
Goal 6: Plan for City facilities that meet current and future needs
Fiscal Information
This lease shall generate:
- $1,420 per year through 2028
- $1,503 per year 2028-2035
- $1,587 per year 2035-2038
For a 20-year total of $29,482.
Alternatives and Recommendation
Alternatives
1. Approve Lease as Approved by Airport Advisory Committee
2. Recommend Lease alterations for consideration by AAC
3. Reject Lease.
Recommendation
Approve Lease as approved by Airport Advisory Committee
Requested Action/Motion
Motion to approve lease as presented and approved by the Airport Advisory Committee.
Submitted By: Mark Morgan