TITLE
Consider a memorandum/resolution approving Addendum No. 2 to Central Texas College (CTC) Lease at Skylark Field.
SUMMARY
DATE: July 7, 2020
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Interim Executive Director of Aviation
SUBJECT: CENTRAL TEXAS COLLEGE (CTC) LEASE ADDENDUM NO. 2
BACKGROUND AND FINDINGS:
Central Texas College (CTC) has been a major tenant at Skylark Field (formerly known as Killeen Municipal Airport) since 1970. The college leases 60,030 square feet of land on which it has built and owns two large hangars to support its flight operations. The college operates an associate degree career pilot training program with full time staff and a fleet of fourteen aircraft.
The current land lease agreement was approved by Council on July 8, 2014 with an effective date of August 1, 2014 and an expiration date of July 31, 2017. It was amended with Addendum No. 1 dated June 29, 2017 for an additional three year term with an expiration date of July 31, 2020. The lease provisions included an option for up to two additional three years with terms. It also provides the City would review the base rental rate prior to the term extensions and reserve the right to adjust the rate up to the percentage of change in the Consumer Price Index for the most recently published three year period.
Staff has negotiated a lease addendum to extend the lease by three years, through July 31, 2023. Rental rates for this renewal option are proposed to increase the ground rental rate from $0.046 to $0.0464 per square foot per month. This will increase the total rent by $29.00 per month to a total of $2,790.38.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) Accept the Addendum; (2) reject the Addendum.
Which alternative is recommended? Why?
Alternative 1 is recommended. The current lease allows for a three year extension and CTC is a major long term tenant in good standing at Skylark Field that provides an excellent pilot training program.
CONF...
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