Memorandum

City of Lawrence

City Manager’s Office

TO:              Mayor and City Commission

CC:               Diane Stoddard, Assistant City Manager

                   Toni Wheeler, Legal Services Director

                   Charles Soules, Director of Public Works

                   Mark Thiel, Assistant Public Works Director

                    Steve Bennett, Building/Maintenance Engineer

                   Roger Zalneraitis, Economic Development Coordinator/Planner

FROM:          David Corliss, City Manager

DATE:           September 17, 2009

RE:               Revision to Fixed Base Operator Agreement at Airport

Hetrick Air Services, Inc.  is the Fixed Base Operator (“the FBO”) for Lawrence Municipal Airport.  As part of their agreement with the City, the FBO had right-of-first-refusal on a parcel of land located immediately to the east of the existing Terminal.   This property is a likely location for future development and use at the airport.  Additionally, the original agreement provided for annual increases in the monthly rental payments, regardless of inflationary rates experienced in the region. Staff recommends approval of the attached addendum to the agreement, which includes an adjustment in the rental rates pursuant to the Consumer Price Index and a removal of the right-of-first refusal for airport property.

ACTION: Adopt the addendum to the FBO’s land lease agreement, if appropriate.