AGENDA CAPTION:
Title
Consider approval of Resolution 2023-141R, approving a 12,861 square foot ground lease with Julep Aviation for the construction of an executive hangar at the San Marcos Regional Airport; authorizing the City Manager, or her designee, to execute the lease; and declaring an effective date.
Body
Meeting date: September 5, 2023
Department: Airport
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Economic Vitality
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☒ Economic Development - Promote & Support Potential of San Marcos Regional Airport
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Background Information:
On April 4, 2023, City Council approved an MOU with Don Jackson Construction for the development of the Kilo Development Area following a Request for Proposals process.
Pursuant to the MOU, Julep Aviation requests to enter into a long-term ground lease agreement with the City for the construction of a private executive hangar on 12,861 square feet. The hangar will be used for aircraft storage and flight department activities.
The lease rate is $0.40 per square foot totaling $428.70 per month, which will increase by 10% every 5 years. The Primary lease term is 30 years with a 10 year extension option.
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Recommendation:
Staff recommends approval.