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City attorney recommends approving hangar lease assignment only with updated terms after compliance concerns
Summary
Staff and the city attorney told council a 2006 hangar lease to Mr. Hill appears to be in violation of ownership/occupancy terms; counsel recommended approving an assignment if the new lease includes current FAA‑compliance and insurance terms and emphasized the city retains enforcement rights.
The Manchester City Council heard an extended staff and legal briefing about a 2006 hangar lease that the city says has unresolved compliance issues.
City counsel described lease language that bars assignment without written city consent and requires the hangar to house aircraft owned by the lessee. Counsel said the hangar has not been used to store the owner’s aircraft, which conflicts with paragraph 10 of the lease, and recommended that the council approve any assignment only if the new lessee signs an updated lease containing modern terms (FAA compliance clauses, insurance and fire‑safety requirements) and an explicit reservation of the city’s enforcement rights.
"I would suggest you approve the assignment but have the new lease include the terms you have in all of your leases now," the city attorney said, noting the council has grounds to withhold consent or to use prior violations as a basis for termination if the lessee fails to comply. Staff said they will send a notice to Mr. Hill explaining that the council has not yet approved the assignment and that prior lease violations could be actionable.
Council did not enact an immediate termination; rather, the direction from counsel and staff was to allow the assignment process to proceed only with updated lease terms and to communicate the city’s expectations to Mr. Hill prior to final approval.
Next steps: staff to send formal notice to Mr. Hill and prepare a revised assignment or lease document reflecting current lease standards for council approval.
