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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested:March28,2022 <br />Requested By:Ray Mayo, Director Source of Funds:N/A <br />Department:Public Works <br />Account Number:N/A <br />Amount Budgeted:N/A <br />ReportResolutionOrdinance <br />Amount Requested:N/A <br />Exhibits:Tri-Star Lease Agreement <br />Budgeted Item:YesNo <br />SUMMARY& RECOMMENDATION <br />Tri-StarAviation, Inc.is one of the four(4)fixed base operators (FBO) that leases a <br />property at the La Porte Municipal Airport. Tri-Star has occupied the same tract since <br />2002, as a successor to the previous tenant Bayport Aviation.The tenant is currently <br />the largest FBO at the airport, and is beneficial to airport operations. <br />The first amendment to the 1985 lease agreement was in April 2002. This current <br />agreement is due to expire on March 31, 2022. The tenant hasexpressed interest in a <br />new lease agreement, effectively extending the lease for a 25-year term.The <br />agreement has a provision for a five-year extension optionat the end of the 25-year <br />lease. <br />Lease rates for aeronautical fixed-base operations are established by ordinance. These <br />rates are structured to attract aeronautical business and promote development on the <br />airport. The tenant is current on lease payments and maintains the required level of <br />insurance.The tenant meets the minimum standards to conduct aeronautical activities <br />at the airport. Tri-Star has tendered the non-refundable lease preparation fee of <br />$500.00. <br />Staff recommends approval of the new lease agreement for Tri-Star Aviation, Inc.for <br />a 25 year term. <br />Benefits: <br />Longer lease terms promote stability and development for the airport. <br />Liabilities: <br />Theaeronautical community that fillsthese roles of fixed base operators <br />is limited. <br /> <br />