Title
An Ordinance authorizing the renewal of a lease agreement by and between the City of Lee’s Summit and BFRE, LLC for a period of six (6) years with options for one additional six (6) year term. (PWC 8/11/25)
Body
Issue/Request:
The Honda Dealership located at 401 NE Colbern Road dba BFRE, LLC has been leasing this property since 2016 and would like to renew their lease agreement for an additional 6-year term. The term(s) of the lease are tied to the Special Use Permit (SUP) for this project on February 18, 2016
Key Issues:
Per the lease agreement, the property is re-appraised and a new base rate established for each renewal period. Based on the appraisal, the Airport and BFRE, LLC have negotiated a new base rate.
The agreed-upon terms include a 6-year renewal with an annual CPI-U increase. Federal Aviation Administration requirements limit non-aviation agreements to six-year terms. At the end of the six-year term, the property will be reappraised, and a new value will be established for the next six-year term.
Proposed City Council Motion:
First Reading: An Ordinance authorizing the renewal of a lease agreement by and between the City of Lee’s Summit and BFRE, LLC for a period of six (6) years with options for one additional six (6) year term.
Second Reading: An Ordinance authorizing the renewal of a lease agreement by and between the City of Lee’s Summit and BFRE, LLC for a period of six (6) years with options for one additional six (6) year term.
Background:
The City approved a Special Use Permit (SUP) for this project on February 18, 2016. The Lee’s Summit Honda Dealership entered a ground lease in August 2016 and is currently paying the Airport for vehicles being parked on Airport property.
Impact/Analysis:
This lease will generate $84,768.00 annually in ground lease revenues with a CPI-U annual for the next six years.
Timeline:
Start: August 2025
Finish: August 2031
Presenter
Joel Arrington, Airport Manager
Recommendation
Staff Recommends approval of an Ordinance authorizing the renewal of a lease agreement by and between the City of Lee’s Summit and BFRE, LLC for a period of six (6) years with options for one additional six (6) year term.
Committee Recommendation
The Public Works Committee voted unanimously 3-0 (Councilmember Carlyle "Absent"), to recommend to City Council approval of an Ordinance authorizing the renewal of a lease agreement by and between the City of Lee’s Summit and BFRE, LLC for a period of six (6) years with options for one additional six (6) year term.