The
city council voted to release Air Evac from their lease at the rate of $300 per
month for 17 months. And the city will
retain the building, as stipulated in the lease.
From
the MoDOT Dec. 21st letter on Hangar Rates.
In order to
demonstrate compliance with federal grant obligations, a corrective action plan
is required which documents that the City’s current lease agreement with
AirEvac is consistent with the City’s rental structure for businesses operating
at the Airport. An acceptable corrective action plan would also include a City
commitment to modifying its lease with AirEvac at the next available
opportunity to include an escalation provision which would increase AirEvac’s
rent at the same rate as the other airport tenants in order to work towards
achieving airport self-sufficiency.
The
city had an opportunity in the termination of the Air Evac lease, to increase
the rate for the final 17 months of the lease, or to require an additional rent
payment that would have satisfied the above determination.
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