American Airlines will begin paying the City of Stillwater rental and landing fees for its use of Stillwater Regional Airport. The City has been waiving those fees for the past three years while the airline established commercial air service in Stillwater.
The City can no longer waive them and needs to have a new written agreement, Deputy City Manager Melissa Reames told the City Council on Monday.
The airline is leasing a total of 2,314 square feet to the airline at $19.50 per square foot per year.
That includes the terminal counter, kiosk space, queuing space in the terminal, office space and the departure terminal and counter.
Fees for the space used for ground service equipment staging, baggage claim, aircraft parking and ramp loading will continue to be waived under the new agreement, which runs through Aug. 31, 2022 with two one-year renewal options.
The rental payments will total $45,123 annually, to be paid in monthly installments of $3,760.25. according to the contract.
American Airlines is paying the standard rate charged to other tenants at the airport, Reames said.
In addition, American Airlines will pay a landing fee for each scheduled commercial landing and each charter landing.
Each commercial flight landing will cost the airline $.90 per 1,000 pounds of gross aircraft weight.
Charter flight landings will cost more at $1.30 per 1,000 pounds.
The lease does not give the airline exclusive rights to use the airport.
Water, sewer, gas, electricity, trash service, janitorial service for public areas and WiFi are provided by the City of Stillwater and included in the terminal rent. Any other utility services would be provided by the airline at its own cost under the contract.
The airport is responsible for maintenance and structural repairs unless the damage is caused by negligence or willful misconduct by the airline or its employees.
The contract allows American Airlines to make improvements to the airport facilities as long as those plans are approved by the Airport Director. Any improvements that aren’t trade fixtures that can easily be removed become the property of the airport.
In other business, the City Council approved the purchase of hearing protection for the Stillwater Police Department’s special operations team that will allow the members to communicate with each other. The department previously budgeted $35,000 but prices went up, Police Chief Jeff Watts said.
The department received a donation of $6,900 and will take the remainder from its drug seizure fund.
The council also approved spending $56,000 from the capital improvement fund to replace the roof on the club house and residence at Lakeside Memorial Golf Course.
Specific Use Permits were approved for a commercial property at 712 Eastgate, which will be used for electronics manufacturing and for 801 S. Perkins Rd. and 211 B Perkins Rd. Unit 10, which will be medical marijuana dispensaries.