Title
Consider a memorandum/resolution approving a lease agreement with CSI Aviation, Inc. at the Killeen Regional Airport.
Body
DATE: January 7, 2025
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: CSI Aviation Lease Agreement Approval
BACKGROUND AND FINDINGS:
On February 28, 2023, the City Council awarded a contract to NASCO, Inc., in the amount of $5,335,019.32, for the construction of a second Corporate Hangar at Killeen Regional Airport (KRA). This Hangar is now ready for occupancy.
Staff has negotiated a lease agreement with CSI Aviation, Inc. to lease a 13,200 square foot hangar and office space at Killeen Regional Airport (KRA). The term of the lease agreement is for a period of six-and-a-half (6.5) years beginning February 6, 2025, and ending July 31, 2031. The agreement will authorize the tenant to conduct air transportation and related general aviation operations, including but not limited to passengers, charter, air cargo, medical flight services, aircraft maintenance and fixed base operations services at KRA.
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 (30) 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?
The lease agreement provides that the tenant will pay rental fees at a monthly rental rate of $8,846.67, not including various monthly security, telephone, and information technology fees within the lease. Revenues will be deposited in the KRA enterprise fund account 525-44226-600-601-000000. The revenue for the remainder of FY 2025 is $79,620.03. For future years, the Lease Agreement includes an annual CPI increase.
Is this a one-time or recurring revenue/expenditure?
One time
Is this revenue/expenditur...
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