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Bobbi: At Wichita we
annually approve (by policy board) schedules for both land rental rates, and
facility rental rates for our two airports. We have not historically
waived, skipped, forgiven, deferred or otherwise adjusted these schedules due
to a weak economic period if these were previously agreed to in a binding
use and lease agreement. Nor, when the economy is strong, we don’t
ask tenants to pay more; this goes both ways. Our facility
(buildings) rental rates are established by property lease appraisals agreed to
by both parties; these range from $5 - $10/s.f./year. Our current land
rental rates for ICT are: ·
Premium
land (AOA access, etc.) 0.3388/s.f. (1/1/2011 – 12/31/2011) and escalate at 5%
per year. ·
Non-premium
land 0.1982/s.f. (1/1/2009 – 12/31/2012) and escalate 5% every five years. For leases
that have expired or the option term has come due within the past 2 years we
have had a number of tenants that have requested reduced facility and/or land
rental rates. Most of these have been accommodated. For obvious
purposes, our appraiser has recommended that we do not agree to significantly
reduced rental rates beyond 2 to 3 years without an opportunity for another
review and possible adjustment. Your inquiry
was timely, and I would like to add a couple of other questions to anyone who
may care to respond. A local appraisal firm is currently evaluated our
leasing policies, lease rate schedules, and escalations. I would like
to know the following if anyone is inclined to offer information: § What are others currently getting for
annual land rental rates? § Do others have various land rental
rates for different types of properties such as improved, unimproved, AOA
access, other? § What method of escalation are they
using, and how often, i.e. CPI, FMV, fixed percentage, adjusted every year,
five years, ten years, etc.? Brad
Christopher, A.A.E. Assistant
Director of Airports Wichita
Airport Authority bchristopher@xxxxxxxxxxx From: help-owner@xxxxxxxxxxxxxxxxxxxxxx
[mailto:help-owner@xxxxxxxxxxxxxxxxxxxxxx] On Behalf Of Stephen Irwin All, We are conducting a survey of airports regarding the impact of the
economy on lease rates. The question is as follows: If you had a scheduled lease
rate adjustment in either 2009 or 2010 within an existing lease at your
airport, did you follow through on the adjustment? If not, was the
scheduled adjustment deferred for a period of time, or just skipped until the
next scheduled adjustment? Thanks for your assistance. Bobbi
Thompson Email: BThomp129@xxxxxxx |