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Board previews proposed lease for 12,500 sq. ft. hangar at Douglas International Airport for film use
Summary
Development services presented a proposed lease allowing a film company to occupy and improve a hangar at Douglas International Airport; lease terms tie tenant improvements to rent deductions and require commercial liability insurance and FAA coordination.
Development Services presented a proposed lease the county could offer to a film company for one of the large hangars at Douglas International Airport.
Staff said the facility is approximately 12,500 square feet and that the prospective lessee intends to use it as a sound stage and film production space. The county conducted a market-rent analysis showing the proposed rent of $3,750 per quarter (described in the meeting as “10 cents a square foot”) sits below standard non-aeronautical market rates but reflects the tenant’s obligation to undertake significant repairs and improvements.
Under the lease terms described in the staff presentation, the tenant would perform and pay for specified improvements and could deduct approved improvement costs from lease payments after submitting receipts; the county would retain ownership of improvements. The lease would require the tenant to obtain and maintain commercial liability insurance. Staff said the hangar’s non-aeronautical use and the need for structural and exterior repairs informed the lower rent.
Staff also noted the lease would be transmitted to the Federal Aviation Administration for review if the board approves it, to ensure there is no conflict with airport or FAA requirements. Board members asked whether the use would conflict with runway safety or planned runway projects; staff said the hangar is located away from the runways and that FAA coordination would be part of final approval.
No final action was taken at the work session; staff said the full lease language is attached to the agenda packet and the item would advance to a future meeting for formal action if the board chooses to proceed.
