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Board previews lease allowing Big Ron's Automotive to renovate vacant airport building
Summary
Hot Springs staff recommended a two-year lease (with a five-year option) for Big Ron's Automotive to occupy and renovate the long-vacant Quick Lube building at Hot Springs Memorial Airport; the tenant would pay $2,595.33 monthly and credit $2,000/month toward up to $28,000 in improvements over 14 months.
Don Rowlett, the city’s airport director, told the board the 3,222-square-foot former Quick Lube building at 505 Airport Road has been vacant ‘‘10 to 15 years’’ and needs substantial repairs.
The proposed two-year lease, with a five-year extension option, would set monthly rent at $2,595.33. Rowlett said the tenant, Big Ron’s Automotive LLC, proposed to fund leasehold improvements; over the first 14 months the rent structure would credit $2,000 per month toward renovations, not to exceed $28,000 in total. Tenant cost estimates in the packet put the anticipated renovation at $27,922.32, covering electrical work, painting and overhead-door repairs.
The city attorney told directors the arrangement is lawful even though the property was not publicly advertised because the tenant approached the city and leasehold-improvement agreements are an accepted practice to secure capital upgrades to city-owned facilities. Director Karen Garcia asked whether the building had been advertised; Rowlett said it had not and that the proposal originated with the prospective tenant.
City staff and the airport advisory committee support the proposal, Rowlett said, and noted the terms mirror recent airport arrangements where a city asset was restored by a tenant. The item was presented so the board can consider formal action at its next regular meeting.
If the board approves the lease at the June 2 meeting, staff said the tenant must complete agreed improvements before opening for regular operations. The item will appear on the board’s consent agenda for the June 2 meeting.
