CPA acting Executive Director Lee Cabrera said the lease takes effect on Sept. 1.
CPA granted Freedom Air a 15-year lease term subject for renewal every five years.
But CPA denied Freedom Air’s request for a monthly lease rate of $750.
Freedom Air will have to pay to regular rate of $1,000.
“That’s identical with Taga Air’s lease rate,” Cabrera said.
The hangar was previously leased to Taga Air.
Cabrera said Freedom Air agreed to a 20 percent incremental monthly payment beginning in the sixth and 11th year of the lease agreement.
“This means that they will pay $1,200 in the beginning of the sixth year and 20 percent of the figure will be added to the monthly base in the beginning of the 11th year of the lease agreement,” Cabrera said. “They have an option to extend the lease or not.”
Freedom Air will pay for the cost of any repair, maintenance, rehabilitation and improvement needed by the hangar.
According to Cabrera, Freedom Air is aware of CPA’s financial situation and its inability to incur additional expenses.
