ITEM TITLE:
title
Discussion Item: Sublease Rates for the Valdez Pioneer Field Airport Terminal Building
body
SUBMITTED BY: Jenessa Ables, Port Operations Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:rec
Port Staff does not recommend raising rental rates at this time. Port Staff recommends revisiting this subject in 2017. This is listed as a Discussion Item to gain Commission input. Should the Commission want to make a different recommendation than Staff the item can be brought forward as an Action Item on the next meeting agenda.
end
SUMMARY STATEMENT:
In 2010 the City Council approved Resolution No. 10-60, increasing the Airport rental rate 5% per year for the 3-year period of 2011, 2012, and 2013. During 2014 and early 2015 the building underwent a major construction project with the replacement of the roof. There were some disruptions to tenants with the project, and no rate revisions were recommended during this time. The Commission last reviewed the Airport rental rate in October of 2015 and elected to continue a one year hold on the Airport rental rates and revisit the discussion in 2016.
To help with the discussion regarding rental rates I have included a few worksheets in your packets. The Airport Rate Comparison sheet outlines revenue associated with 2%, 5% and 10% increases. The Airport Building Use Comparison outlines revenue loss associated with City Use and Vacant Space. Note that Joint Pipeline Offices vacated approximately 1,700 sq. ft. at mid-year and City Use has potential to increase in 2016 and 2017.
We have typically tried to keep the rental rate at the Airport above the rental rates in town so the City is not competing against private enterprise. Although it is difficult to get building owners to share the information on their rental rates, the data we have collected shows in-town rates at $1.60 - $2.00/sq. ft. with one owner reporting a $2.00 - $2.50/sq....
Click here for full text