Title
Resolution to Approve a Lease Agreement Between the City and the Experimental Aircraft Association (EAA), Chapter 333 for (1) Hangar Building 25 and (2) Old Terminal Building 26 at the Ann Arbor Municipal Airport, for Twenty Years (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to approve a Lease Agreement that will create a new lease agreement between the City and the Experimental Aircraft Association (EAA), Chapter 333, for one twenty-year lease for two buildings at the Ann Arbor Municipal Airport.
The previous lease agreement with the EAA was for this same hangar building (Building 25) on the east side of the airport property that at that time needed significant rehabilitation. That lease has expired and this new lease will bring the EAA into updated terms with conditions to fix the roof, hangar doors and exterior paint which will add enhancement to the south side of the airport that faces State Street at their cost in the amount of $68,610.00 which will be included as a credit back to their rent as set out in their lease.
The rent for this lease shall be $0.50 per square foot per year for a total annual rent in the amount of $3,707.00. Lessee shall pay rent to the City in monthly installments of 1/12 ($308.92) of the annual rent. Rent shall increase each year on July 1 based on the Consumer Price Index (CPI) as set out in the lease.
Renovation of the original structure (Building 26) was completed in their original lease and the results are satisfactory. This new lease agreement is to include timetables for these improvements to Building 25, providing the EAA with ample to absorb the cost of rehabilitating this building.
Chapter 333 of the EAA is based at the Ann Arbor Municipal Airport and has provided positive contributions to the airport. The EAA previously rehabilitated the old terminal building at the airport that was in very poor condition and the results are exceptional.
Staff
Prepared by: Carl Konop...
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