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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 |