STRATEGIC PRIORITY: Economic Development
AGENDA DATE: August 14, 2024
COUNCIL DISTRICT(S): 3, 6
DEPARTMENT: Department of Aviation
EXECUTIVE: Dev Rastogi
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SUBJECT
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Authorize (1) annual lease rental rates at Dallas Love Field of (a) $0.85 per square foot for aeronautical unimproved land; (b) $1.10 per square foot for aeronautical improved land; (c) $5.50 per square foot for storage hangars; (d) $6.25 per square foot for maintenance hangars; (e) $11.00 per square foot for office space; (f) $11.00 - $12.00 per square foot for cargo and support facilities; (g) $30.00 per square foot for terminal office space; (h) $2.64 to $3.85 per square foot for non-aeronautical commercial and retail use land; (i) $1.38 - $2.10 per square foot for non-aeronautical office use land; (j) $8.00 - $12.00 per square foot for non-aeronautical warehouse and storage use, and (k) $2.64 - $3.85 per square foot for non-aeronautical rental car development land, effective September 1, 2024; and (2) lease rental rates at Dallas Executive Airport of (a) $400.00 per month for T- hangars; (b) $20.00 per square foot annually for terminal office space; (c) $30.00 per day for single-engine aircraft tiedown; (d) $40.00 per day for multi-engine aircraft tiedown; (e) $6.00 per square foot annually for restaurant space; (f) $0.56 per square foot annually for non-aeronautical commercial land along Hampton Road and Challenger Drive; (g) $0.28 per square foot annually for other commercial land and light industrial; (h) $0.45 per square foot annually for aeronautical unimproved land; (i) ($0.55 per square foot annually for aeronautical improved land; and (j) $5.50-$6.50 per square foot annually for storage/maintenance hangars, effective September 1, 2024 - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
In an effort to remain on pace with changing market conditions, the Department of Aviation periodically conducts fair market value studies to determine appropriate rental rates for all of its properties. On December 12, 2018, the Dallas City Council authorized an increase in the annual lease rental rates at Dallas Love Field, Dallas Executive Airport, and the Dallas Vertiport based on recommendations from a fair market value analysis acquired by the Department of Aviation. Due to the economic conditions following COVID-19, the Department of Aviation elected not to acquire an updated study for the past few years.
Last year, the Department of Aviation authorized an appraisal services contract with Airport Business Solutions to provide updated annual lease rate recommendations at Dallas Love Field and Dallas Executive Airport for both aeronautical and non-aeronautical land uses based on fair market values. The Department of Aviation recommends these proposed updated lease rates shall be effective on September 1, 2024.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 12, 2018, the City Council authorized Rental Rate Revision by Resolution No. 18-1758.
FISCAL INFORMATION
This action has no cost consideration to the City. Department anticipates that there will be future revenue that will be identified when future leases are brought to the City Council for approval.