ITEM TITLE:
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Adopting Sublease Rates at the Valdez Pioneer Field Airport Terminal Building and Repealing Resolution No. 10-60 Formerly Naming Sublease Rates
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SUBMITTED BY: Jenessa Ables, Port Operations Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve the recommendation to adopt sublease rates at the Valdez Pioneer Field Airport Terminal Building.
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SUMMARY STATEMENT:
The Ports & Harbor Commission conducts an annual review of sublease rates at the Valdez Pioneer Field Airport terminal building. In 2017 the Commission unanimously approved a recommendation to increase sublease rates from $1.81 per square foot per month to $1.90 per square foot per month. This rate increase was not approved by the City Council and the rate remained at $1.81 per square foot per month.
During the meeting of November 18, 2019, the Ports & Harbor Commission requested the discussion item be brought back as new business to allow them to officially recommend an increase of sublease rates. The majority felt the current rate of $1.81 per square foot per month is too far below market price even considering the "out of town" location of the airport and emphasized the City's responsibility to remain non-compete with privately leased commercial and office space. [It should also be noted that some Valdez Pioneer Field Airport terminal building tenants are private business owners].
Sublease rates have not increased since 2013 and the following major maintenance and capital improvements have been completed at the Valdez Pioneer Field Airport over the course of the last 6 years:
-Airport Roof Replacement
-Airport Exterior Door Replacement
-Airport ADA Restroom and Waterline Upgrades
-Addition of free public wireless internet throughout terminal building
-Addition of standard television service in waiting areas
-Upgraded public announcement system for aviation use tenants
Other considerations include...
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