Title
Consider a memorandum/resolution approving a Lease Agreement at the Killeen Regional Airport with the General Services Administration.
Body
DATE: April 1, 2025
TO: Kent Cagle, City Manager
FROM: Michael Wilson, Executive Director of Aviation
SUBJECT: Approval of General Service Administration Lease Agreement
BACKGROUND AND FINDINGS:
The Killeen Regional Airport leases administrative space within the terminal building to the United States Government through the General Services Administration (GSA) for use by the Transportation Security Administration (TSA). The original GSA lease agreement, effective from August 1, 2004, to September 30, 2007, was for a term of three years and two months. This lease has been extended multiple times by mutual agreement between the City Council and GSA. The current lease is set to expire on March 7, 2025.
Staff has negotiated a new lease agreement with the GSA with a date of May 1, 2025, for a period of seventeen years. The annual rental rate of $130,181 is for five years and will adjust every five years.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
As required by Section 145 of the City Charter, if authorized, the lease shall not be effective until thirty days have elapsed from the date of this resolution.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
This lease agreement is expected to generate $130,181 in annual revenue to the airport enterprise fund. The Lease Agreement includes a scheduled rent increase every five years for the duration of the lease.
Term
Annual Amount Payable Monthly
Years 1 - 5
$130,181.00
Years 6 - 10
$136,689.00
Years 11 - 15
$143,543.45
Years 16 - 20
$150,699.63
Is this a one-time or recurring revenue/expenditure?
Recurring
Is this revenue/expenditure budgeted?
Yes, revenue is budgeted in Aviation Fund account 525-44240-600-601-000000.
If not, where w...
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