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<br />2021-02-08 MINUTES 1 <br /> <br />KITTITAS COUNTY <br />AIRPORT STUDY SESSION MINUTES <br />WEBEX, WEBEX <br />Regular Meeting <br /> <br />MONDAY 11:00 AM February 8, 2021 <br />Board members present: Chair Brett Wachsmith, Vice Chair Laura Osiadacz, Commissioner <br />Cory Wright <br />Others: Greg Zemple, Neil Caulkins, Benjamin West, Julie Kjorsvik, Jeff Renard <br />Meeting Called to Order at 11AM <br />Lease Policy Review: This discussion presented by Director Grannan was to review policy <br />standards for new airport leases. Lease Term, Lease Rate, Rate Escalation, Leasehold <br />Improvements residual value (Reversionary Clause), Lease Assignment and Sublease, design <br />approval and development timelines are the major policy issues needing to be finalized. <br />• Lease Terms currently 25-30 years with added extensions to 40 years. Maximum of 50 <br />years approved by the FAA and County maximum of 35 years as expressed by Neil <br />Calukins. <br />• Rate escalation to be set on a flat rate with 5-year increases and market adjustment if we <br />set the initial base rate at a new and updated value. Questions were raised if the 5-year <br />market study was a widely supported evaluation process? It is currently a mixed field <br />and will need to be addressed in the AAC and brought to the BoCC for final decision. <br />• Assignment per FAA, control needs to stay with the Airport. <br />• Residual Value of leasehold improvements. All improvements revert to the airport <br />sponsor at the end of the lease term. Several questions were posed during discussion as <br />follows; How do we manage assets after the end of the term to provide value and <br />maintain the structures thorough out the length of the lease? If the improvement is taken <br />over by the Airport how do we make sure the county isn’t ending up with derelict <br />buildings. How does this provide incentive for improvement by tenants? More <br />discussion will take place with the Airport Advisory Committee to provide clarity, <br />options and recommendations. <br />Tennant Cleanup: The airport is looking for guidance for a grace period for tenant <br />improvements of current leased properties. Many tenants out of compliance of current lease <br />agreements. It is the plan of the airport department to set the standard by maintaining our own <br />properties prior to enforcing any lease regulations. Commissioner Osaidacz asked about <br />sleeping in hangar structures and was this a residence or temporary use? She also said the <br />county has the responsibility to set the standard prior to asking tenants to make corrections. The <br />airport department will be making efforts to clean up our properties in the coming months with <br />final assessments by July 1, 2020.