Coversheet

Agenda Subject: Resolution No. 5463 (Hinman)		Date: November 26, 2019
Department: Administration	Attachments: RES 5463 - Airport Land Lease Amendments Exhibit A - Auburn Condo Hangars Association Exhibit B - James Jacobsen Exhibit C Auburn Hangars Owners Association Exhibit D - Auburn Flyers Condo I Exhibit E - Auburn Flyers Condo II Exhibit F - Auburn Flyers Condo III	Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0

Administrative Recommendation:

Adopt Resolution 5463 so that those land leases on the Auburn Municipal Airport subject to the 2020 Fair Market Value assessment can have their rate increase implemented incrementally over a two year period.

Background for Motion:

Background Summary:

Six of the airport land leases are subject to Fair Market Value (FMV) lease rate adjustments in the upcoming 2020 term. Valbridge Property Advisors delivered an MAI appraisal dated September 30, 2019 establishing the current FMV for airport land at $0.825 per square foot per year. This valuation represents roughly a 36% increase over the 2019 lease rate.

Amending the lease agreements to allow for implementing the 2020 term FMV increase in two separate increments between the 2020 & 2021 terms would ease the financial burden of the Airport tenants.

Reviewed by Council Committees:

Councilmember:		Staff:	Hinman
Meeting Date:	December 2, 2019	Item Number:	RES.A