Title
An Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and TM Aviation, LLC (TMA) for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located at the Kansas City/Lee's Summit Regional Airport and authorizing the Mayor to execute an agreement for the same. (PWC 3/9/26)
Body
Issue/Request:
An Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and TM Aviation, LLC (TMA) for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located at the Kansas City/Lee's Summit Regional Airport and authorizing the Mayor to execute an agreement for the same.
Key Issues:
• Approval of this ordinance would authorize the execution of a Ground Lease Agreement with TMA to construct a hangar Southeast of the East Apron of the Airport.
• The hangar will be used to store aircraft and support their ongoing maintenance.
• The lease provides for a total of 29,250 sq. ft. for the development of a 90’ by 130’ aircraft hangar, in addition to a ramp, and automotive parking.
• TMA has agreed to an initial ground lease rate of $0.51 per square foot.
• The initial annual rental rate will be $14,917.50 then increasing each year based on the CPI.
• The lease term is for an initial term of thirty (30) years with options for up to two (2) additional ten (10) year renewal periods.
Proposed Committee Motion:
I move to recommend to City Council for approval of an Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and TM Aviation, LLC for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located at the Kansas City/Lee's Summit Regional Airport and authorizing the Mayor to execute an agreement for the same.
Background:
The attached Lease Agreement is for the development of a 90' ft by 130’ ft aircraft hangar on leased premises encompassing 29,250 square ft, or less. The tenant intends to store a personal aircraft and perform ongoing maintenance of the aircraft. The lease term is for 30 years plus two additional 10-year renewal options. The ground lease rental encompasses the footprint of the building, ramp area, and automobile parking. This lease is part of a program at the Airport to develop existing airside property (e.g. hangars, terminal building, and fixed base operator (FBO) facilities) on the airport that will generate additional revenue for the airport and help support the Council’s goal of a more financially self-sustaining Airport that generates economic activity for the City of Lee's Summit.
Impact/Analysis:
Increase in annual ground lease, fuel sales revenues and economic activity to the area.
Timeline:
Start: Construction will begin Summer 2026
Finish: Late 2026 to Early 2027
Other Information/Unique Characteristics:
FAA Airspace Study has been completed.
Presenter
Joel Arrington, Airport Manager
Recommendation
Recommendation: Staff recommends approval of an Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and TM Aviation, LLC for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located at the Kansas City/Lee's Summit Regional Airport and authorizing the Mayor to execute an agreement for the same.
Committee Recommendation
Committee Recommendation: