Title
Consider/Discuss/Act on an Ordinance to Increase Airport Land Lease Rates
Summary
MEETING DATE: August 4, 2014
DEPARTMENT: Airport
CONTACT: Ken Wiegand, Executive Director
RECOMMENDED CITY COUNCIL ACTION:
· Approve the Ordinance
ITEM SUMMARY:
· It has been eight years since the lease rate was reviewed and adjusted.
BACKGROUND INFORMATION:
· McKinney National Airport has approximately 51 acres of land that can be developed.
· Land is leased to private developers for the purpose of constructing infrastructure and facilities to support their business.
· Land lease rates have been increased three times by City Ordinance during the past 15 years (refer to the Attached White Paper).
· The attached Land Lease Rates White Paper provides detailed land lease rate information.
· TKI competing airports, Dallas Love Field and Addison Airport have maintained a two-tiered rate with low land lease rates of $0.40 per square-foot per year and $0.45 per square-foot per year respectively and each a high land lease rate of $0.65 per square-foot per year since 2010.
FINANCIAL SUMMARY: NA
BOARD OR COMMISSION RECOMMENDATION:
Adjust the current land lease rate from $0.30 per square-foot per year to variable rates between $0.45 per square foot per year and $0.65 per square-foot per year with consideration for the type of aeronautical service or activity provided, lessee's financial investment, length of term, and airfield location.