REPORT TO

MAYOR AND COUNCIL

PRESENTED: APRIL 20, 2009 - SPECIAL MEETING REPORT: 09-55

FROM: CORPORATE ADMINISTRATION DIVISION FILE: 8400-01
SUBJECT: LANGLEY REGIONAL AIRPORT LEASE RATES AND TERMS

RECOMMENDATION(S):
That Council give approval to increase the airport lease rate of serviced property at Langley
Regional Airport from $0.2511 to $0.308 per square foot and unserviced property from $0.1372
to $0.18 per square foot effective May 1, 2009; and further

That Council give approval to amend Policy No. 05-210 as at ATTACHMENT A to allow
consideration for new serviced property lease terms of up to 30 years instead of the current 20
years.

EXECUTIVE SUMMARY:
Council received a presentation and report on April 6, 2009 from Mr. Dave Kirk, Cunningham &
Rivard Appraisals Ltd., providing results of a rentable value appraisal of properties at Langley
Regional Airport completed on February 9, 2009. A similar comprehensive review is undertaken
every five to seven years. The previous appraisal was done in 1999 and the increase phased in
over three and one-half years. Township lease agreements allow for one annual increase.
Agreements state that increases will be either that approved following a comprehensive review
or a percentage amount not to exceed BC Statistics Vancouver Consumer Price Index for the
previous 12 month period.

Cunningham & Rivard Appraisals Ltd. (Nanaimo) was chosen to conduct the review based on
an analysis of its experience in the airport marketplace, its most recent market review of the
Nanaimo airport, and savings realized as a result of them having just completed a
comprehensive review of surrounding airports.

The appraisal report recommends that the serviced property lease rate be increased from
$0.2511 to $0.28 per square foot for a 20 – 25 year lease. However, it recommends a further
ten percent increase for a 30 year lease resulting in $0.308 per square foot. This rate is
recommended as it would permit better tenant access to bank financing to achieve a high
standard of property improvements. A recommended amendment of Council Policy No. 05-210
is at ATTACHMENT A.

The unserviced property lease rate is recommended to increase from $0.1372 to $0.18 per
square foot but to remain at the current 20 year term due to the development restriction on
these properties that allow only aircraft storage hangars.
LANGLEY AIRPORT – LOT 18 A LEASE AGREEMENT TRANSFER
Page 2 . . .

PURPOSE:

The purpose of this Report is to seek Council approval to:

• increase the lease rate on serviced properties from $0.2511 to $0.308 per square foot
and to increase the term to 30 years effective May 1, 2009
• increase the lease rate on unserviced properties from $0.1372 to $0.18 per square foot
effective May 1, 2009

Respectfully submitted,

George Miller
AIRPORT MANAGER
for
Laurenda Rebelato
CORPORATE SERVICES MANAGER
CORPORATE ADMINISTRATION DIVISION

ATTACHMENT A Proposed Amended Policy No. 05-210

 POLICY MANUAL

Subject: Airport Leases Policy No: 05-210

Approved By Council: 98.09.21
Revised By Council: 09.05.01

1. Purpose
1.1 To provide a frame-work for leasing.

2. Background
2.1 n/a

3. Related Policy
3.1 n/a

4. Policy
4.1 Council shall consider new leases of up to 30 years for serviced properties
and 20 years for unserviced properties, if requested by prospective lessees,
with a renewal option for further five years periods at the anniversary date.
Sub-leasing for commercial purposes shall only be permitted for whole lots
or portions of a lot with Council approval.

4.2 Lease rates shall be adjusted annually in accordance with the Vancouver CPI
or as the result of a comprehensive review which recommends some other
change.

4.3 As of May 1, 2009, the lease rates are as follows:

4.3.1. Unserviced lots (west field) $0.18 per square foot per year

4.3.2. Serviced lots (east and north field) $0.308 per square foot per year