City staff recommends lease at Hot Springs Memorial Airport for pediatric therapy clinic

City staff recommended allowing a three-year lease with renewal options for Jason and Jill LeCampora, d/b/a Arkansas Therapy Group LLC, to occupy 507 Airport Road at Hot Springs Memorial Airport and open a pediatric therapy clinic, airport director Don Rauler told the board on July 8.

Rauler said the 2,400-square-foot building (commonly known as the Haines Appliance Building) and 0.37 acres of land have been vacant; local market appraisal suggested rents near $8–$10 per square foot given the building’s condition. Staff proposed a monthly base of $1,859 (calculated at $8 per square foot) with an agreed rent-credit arrangement to support tenant-funded renovations: during the first two years 70% of the monthly payment would be credited toward leasehold improvements and 30% credited to airport rent; in the third year the split would be 60% credited to rent and 40% to improvements. Staff told the board the tenants also own a construction business and would perform much of the work; packet materials list renovation items and an estimated renovation cost “a little over $66,000.”

Rauler said most renovations would be completed before occupancy, with the tenant targeting a September opening; after the initial term the lease includes tenant options to renegotiate two additional three-year terms (not automatic renewals). Staff recommended the board approve the lease negotiation framework; the item is scheduled for formal consideration on July 15.

Board members asked questions about fairness and precedent; staff said similar arrangements have been used for airport hangars and other vacant airport buildings when city budget did not cover upfront build-out costs.