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’ ...
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