AGENDA CAPTION:
Title
Consider approval of Resolution 2022-182R, approving a Ground Lease Agreement for Non-Aeronautical Use between the San Marcos Regional Airport and the City of San Marcos Fire Department relating to the Fire Training Facility approved by the voters of San Marcos during a 2017 Bond Election; authorizing the City Manager or her designee to execute the lease on behalf of the City; and declaring an effective date.
Body
Meeting date: August 16, 2022
Department: Airport
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Background Information:
As part of the bond package approved by voters on May 6, 2017, the San Marcos Fire Department is beginning construction on Phase I of the Fire Training Field located at the San Marcos Regional Airport.
Because the training facility is being constructed on airport property, in compliance with Federal Aviation Administration regulations and grant assurances, the Fire Department must enter into a ground lease with the Airport at a ground lease rate determined by an appraisal.
The ground lease has a term of 40 years (the maximum allowed per state law) and for Phase I, the monthly rent is $2,250.00 which will begin once a Certificate of Occupancy is issued. This rate will increase by 10% every 5 years.
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Recommendation:
Staff recommends approval of the ground lease.