The Municipal Airport Authority approved a five-year renewal this meeting for a long‑standing hangar tenant and directed staff to draft two new leases related to an ownership change at MAC Air.

The renewal grants the tenant known in meeting materials as "Mister King" a five‑year extension at a monthly rate of $1,340 for the first year, with a 3% annual escalation for the remaining term. The board also voted for staff to prepare two leases and related amendments to reflect a pending change of ownership at MAC Air and a change of use for one hangar to an avionics shop.

Why it matters: the decisions update rents and contract terms that have been in place for many years and will affect airport revenue, tenant responsibilities and the authority’s standard lease language going forward.

Board discussion and vote
The board reviewed the King lease history, which includes an original lease and several amendments. Staff told the board the tenant’s current monthly charge had been $627.52 for an approximately 8,000‑square‑foot portion of a larger hangar, a rate that had not been adjusted consistently in the prior two decades. Staff noted the tenant made improvements to his space in 2018, which the authority previously factored into how the renewal was handled.

After discussion about comparable rates and crediting the 2018 improvements, a board member moved to set the first‑year rate at $1,340 per month with a 3% escalation annually for five years. The motion carried on an affirmative voice vote. The board asked staff to prepare a memo and contract language that documents the term and start date; members raised inconsistencies in lease paperwork about an April versus August payment start date and asked staff to clarify the contract term before finalizing the written agreement.

On a separate motion, the authority directed counsel and staff to prepare two leases and related amendments connected to a pending change of ownership at MAC Air and to reflect a change of use for one hangar to an avionics operation. The board signaled general support and asked that the draft leases specify insurance and operational obligations appropriate to an avionics shop.

Contract and financial details discussed
- Staff reported the tenant invested $113,562 in improvements in 2018; board members said that investment should be recognized in rate-setting.
- The tenant’s prior monthly charge of $627.52 was discussed as a long‑standing, historically low rate.
- Staff presented per‑square‑foot comparisons used internally; board members noted a lack of apples‑to‑apples comparables and favored setting a consistent rate framework to apply to future leases.

Next steps and conditions
Staff and the authority counsel will draft the lease renewal memorandum and two new leases reflecting the MAC Air ownership change and the avionics use. The board requested the drafts return at the next meeting for formal approval and asked staff to document the effective term date and any retroactivity for payments.

Votes at a glance
- Motion: Renew King hangar lease at $1,340/month with 3% annual escalation, five‑year term. Outcome: approved (voice vote). Details: mover and second not specified on the record; board asked staff to clarify contract start date and to produce a memo documenting improvements credited.
- Motion: Direct counsel to prepare two leases and amendments related to MAC Air change of ownership and change of use to avionics. Outcome: approved (voice vote). Details: direction to draft leases, include insurance and operational language, return to board for approval.

Ending
The authority instructed staff to prepare written lease documents and a memo that capture the board’s decisions and the credit for tenant improvements, and to return the finalized leases for ratification at a future meeting.