Title
Aviation Property Lease with QuikTrip
Action
Action:
A. Adopt a resolution to approve a fifteen-year lease agreement of city owned property at the northeast intersection of Todd Road and Wilkinson Boulevard with QuikTrip Corporation, and
B. Authorize the City Manager to renew the lease for up to six, five-year terms, and one, four-year term.
Body
Staff Resource(s):
Haley Gentry, Aviation
Ted Kaplan, Aviation
Explanation
§ Aviation participates in Federal Aviation Administration’s (FAA) Part 150 Noise Program. The FAA Part 150 Noise Program requires airports to purchase properties significantly impacted by noise and put that land back into productive use.
§ Aviation is leasing Part 150 Noise land located at the northeast intersection of Todd Road and Wilkinson Boulevard for commercial development.
§ The lease is made up of 6.5 acres of land which is part of a larger 31-acre parcel; parcel identification number: 055-371-21. This parcel is zoned I-2, which allows for heavy industrial development. It is in the Innovation and Mixed Use place type.
§ On January 13, 2022, the city issued a Request for Proposals (RFP); three responses were received.
§ QuikTrip Corporation, best meets the city’s needs in terms of compensation, lease terms, development concept, and responsiveness to RFP requirements.
§ Aviation has previously contracted with two appraisers to complete independent appraisals to determine fair market value of the property.
§ The ground lease is $225,000 for year one, escalating at a rate of two percent annually for each year thereafter.
Fiscal Note
Funding: Revenue from the lease will be deposited in the Airport Operating fund.
Attachments
Attachment(s)
Resolution for Land Lease