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Board approves five-year CPI lease adjustments for several hangars
Summary
Using Bureau of Labor Statistics data averaged over five years, the board approved CPI lease escalations for Hangars 28, 20B and 20C, with staff to update invoices and send 2026 billing after council approval.
The Regional Airport Board approved five-year Consumer Price Index (CPI) lease adjustments for three hangars, a staff-recommended action built into existing ground lease language.
Airport Director Caden Young told the board that each lease allows the city to execute a rent increase every five years using BLS CPI data averaged over that period. Young said staff prepared tables in the board packet showing the five-year computations and that invoices for 2026 billing will be updated and sent to tenants after council approval.
Board members discussed the percentage level, with one member asking whether the adjustment would be 3 percent and others noting the figure is closer to 2 percent based on the BLS averages. The board agreed to move items 6, 7 and 8 consecutively to save time. Motions to approve the CPI adjustments for Hangar 28, Hangar 20B (Side LLC) and Hangar 20C (Hotel LLC) were moved, seconded and approved by voice votes.
Staff said the CPI computation table is included in the packet for each lease and will show the year-by-year rates and the averaged percentage used to calculate the ground-lease increase.
The board recorded the approvals and directed staff to forward the approved adjustments to city council for final action and to issue updated invoices for 2026.
