Title
An Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and LS Management Services, LLC for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located on the West side of the North Apron at the Lee Summit Municipal Airport and authorizing the Mayor to execute an agreement for the same.
(Note: First read by Council on March 18, 2025. Passed by unanimous vote.)
Body
Issue/Request:
An Ordinance authorizing the execution of a ground lease agreement by and between the City of Lee's Summit and LS Management Services, LLC for a period of 30 years with options for two additional ten-year terms for the development of a Hangar located on the West side of the North Apron at the Lee Summit Municipal 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 LS Management Services, LLC to construct a hangar on the West Side of the North Apron at the Lee’s Summit Municipal Airport.
·The hangar will be used to perform Aircraft airframe and powerplant maintenance, avionic repair, inspections and installation and will also be used by a flight school to conduct flight training and store training aircraft.
·The lease provides ground for the development of a 100’ by 120’ aircraft hangar, ramp, and automotive parking.
·LS Management Services, LLC has agreed to a initial ground lease rate of $0.41 per square foot.
·The initial annual rental rate will be $9,409.50 for the first five years with a five year CPI adjustment in year 6, then increasing each year based on the CPI (December -December period) and being effective July 1 each year.
·The lease term is for an initial term of twenty (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 Ordina...
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