Title
Resolution to Approve a Standard Form of Lease for Private Hangar Owners at the Ann Arbor Airport (8 Votes Required)
Memorandum
The attached resolution approves a standard form of lease for use at the Ann Arbor Airport for those tenants that own their hangar and lease land from the Airport. There are currently ten non-commercial private hangars at the airport, some that date back to the 1940's. Most of these hangars do not have current leases and efforts to get everyone under lease have not been successful in the past. All the hangar owners pay land rent to the Airport.
In late 2015, the Airport Advisory Committee started an effort to improve the aesthetics at the Airport with a focus on the State Road frontage. Many of these older, private hangars had deteriorated and became an eyesore to the community. The process that the Committee undertook started with the creation of maintenance standards for these hangars. All the hangar owners were invited to participate in this activity and a majority of them worked with the Committee through this yearlong interactive process.
The second component of this effort, started in late 2016, was to develop a standard long-term lease for these hangar owners. A lease is important to protect and spell out the interests of both the City and the private hangar owner. A long-term lease allows the hangar owners the time to make the required improvements and to recoup their investment in the hangar. It also allows owners the opportunity to sell their building, with Airport approval, if they no longer are interested in flying. The City Attorney's office drafted a proposed lease document that formed the base of discussions with the hangar owners. Again, all hangar owners were invited to participate, many of them provided input, and general feedback as the draft lease was refined.
The attached form of lease is a 10-year lease with a 10-year option. It includes the maintenance standards for the hangars and an inspect...
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