1997-12-08 Regular Meeting of City Council

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e e REQUEST FOR CTIY COUNCIL AGENDA ITEM I B II I I ' I Ageada Date Requested: m;997 Requested By: S. Gill~ epa . t: Public Works _ Report _ Resolution XXX Ordinance t~~V 1m s n(1lV) -ra~l@ fir( ~Jql yY\g;rfjl)~_ Exhibits: Ordinance No.97- Agreement and Lease for Fixed Base Operations I I 1 ~'i I I I _ SUMMARY & RECOMMENDATION The City of La Porte leases 'three (3) acres to D.E. Aviation, Inc. at the La Porte Municipal Airport. The lease expired on December 31,1996. The City has negotiated a new lease with D.E. Aviation, decreasing the lease area to two (2) acres, effective January 1, 1997, and adding twenty-four (24) tie-downs, effective January 1, 1998. The proposed lease is for a period of twenty years, with two (2) five-year options. The proposed rental rate is $871.20 per acre per year, indexed from a base year of 1984. The proposed lease rental rate is 52,674.58 for the 1997 year, with the rental rate for 1998 at 52,763.44. The twenty-four tie-downs are leased at a rate of 30% of gross revenues from their rental or 512.00 per month per tie-down, whichever is greater, for an annual rental rate of 5144 per tie-down, or SJ,456.oo. D. E. Aviation has tendered! $500.00 for renewal fees, and $2,674.58 for rental fees for 1997. Rental for 1998 and subsequent years will be billed monthly, with future year rentals adjusted to the Consumer Price Index for All Urban Consumers. . Action Required by Council: Approve Ordinance No. 97- Agreement between the City of La Porte and D.E. Aviation. approving the Agreement and Lease Availability of Funds: General Fund___ Water/Wastewater _ Capital Improvement_ General Revenue Sharing Other Account Number: . N/A Funds Available: YES NO