Loading...
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