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KITTITAS COUNTY <br />DEPARTMENT OF PUBLIC WORKS <br />AGENDA STAFF REPORT <br />AGENDA DATE: February 20, 2024 <br />ACTION REQUESTED: Request to Approve a Resolution establishing not - <br />to -exceed standard term for ground lease duration <br />within the Aeronautical Area at Bowers Field. <br />BACKGROUND: Kittitas County Public Works previously met with <br />representatives from the Federal Aviation <br />Administration (FAA) regarding Bowers Field. <br />FAA expressed concern over ground leases which <br />extend beyond a 50-years term. <br />The Airport Advisory Committee (AAC) <br />considered limiting lease terms to 30 years with an <br />option for two 10-year extensions. The AAC <br />supported action to formalize lease duration within <br />the fence at their November 8, 2023, meeting and <br />recommended this for consideration by the Board of <br />County Commissioners. <br />Ground leases within the Aeronautical Area (inside <br />the fence) at Bowers Field are subject to FAA <br />requirements, or grant assurances. Assurance 38 is <br />specific to hangar construction. <br />The FAA Order 5190.613, Airport Compliance <br />Manual states that leases exceeding 50 years raise <br />issues with grant assurances and may be considered <br />disposal of the property in that the term of the lease <br />will likely exceed the useful life of the structures on <br />the property. <br />Limiting ground leases within the Aeronautical <br />Area (inside the fence) to 30-years with an option <br />for two 10-year extensions provides the longest <br />duration lease available for prospective lessors, <br />while maintaining compliance with FAA <br />regulations. Lease language has been reviewed by <br />FAA and meets their expectations for grant <br />