Leistiko to Harball/Gross NegotiationsTIr
Y_I.alispell City Airport
Patrick,James H. ar.
Fred A. Leistiko, Airport « «•`
Post Office Box 1997 - Kalispell, Montana 599031
Telephone (406) 250-3065 Fax - t
July 11, 2006
From: Fred A. Leistiko, Manager
To: Charlie Harball, City Attorney
Cc: City Manager, Jim Patrick
Re: Pete Gross negotiations
1. There has to be a limit to the time Mr. Gross studies the lease -back agreement. He agreed to
the lease -back deal before the sale of the hangars take place. So what is the problem.
2. The City of Kalispell owns the hangars and should be collecting the rent right now. I have
tenants from the T-hangar we are tearing down who would take those hangars in a minute.
3. We need to set a time limit or I will have to notify the tenants to pay the full rent to the
Airport and I will pick up the keys for the other hangar and get it leased.
4. The Billmayer tenant lease is only a sample of what we would like to see in a lease. Mainly
we don't want Mr. Gross representing that he is an agent of the City.
5. The City of Kalispell maintains replacement insurance on the buildings it owns and it is
limited to the value of the building at the time. We expect Mr. Gross to insure the buildings for
their replacement value, plus, carry liability on his duties and responsibilities.
6. The planned shut down of the airport for the new, runway construction has not been
developed yet. That is 2 to 4 years away. It is estimated that the runway will be closed for 60 to
90 days to finish off the north end near the current taxiway and runway. 90% of the project can
be completed with the current runway in place.
7. Waiver of any lease payments for the 60 to 90 days may be considered, we will cross that
bridge when we come to it. It has not been written into any leases so far. And we don't intend to
make that decision right now.
8. The building site (# A-6) which is the subject of Mr. Gross's request is the largest commercial
building site on the airport (100' X 100'). This site is being held for a commercial operation. If
Mr. Gross is serious about leasing it, he needs to move on it before the end of the month. We are
holding a check for lease payments in the amount of $222.60 left over from the last deal. We
need to know what to do with that check.
9. Attached is a copy of the lease we had already sent to Mr. Gross or his attorney for review.
We had agreed to modify paragraph 4d to not require that a building be built until the FAA
approved funding release for the runway expansion. However, Mr. Gross must pay to hold the
lease at the current rate, the same as everyone else.
10. I am reluctant to amend any portion of this lease since we have lots of these leases out there
and it wouldn't be fair to the rest of our clients.
Any questions, please call me.
AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER