I. RECOMMENDATION:
It is recommended that the City Council approve a short-term lease agreement with Momentum Tactical, LLC for use of designated areas at the Coalinga Municipal Airport and authorize the City Manager to execute the agreement and any minor administrative amendments.
II. BACKGROUND:
The City has been in discussions with Momentum Tactical, LLC, a Department of Defense-focused training company specializing in tactical canopy flight instruction and military freefall courses, regarding the use of the Coalinga Municipal Airport for training operations.
The proposed agreement establishes a short-term lease to allow the company to initiate operations while longer-term development and permanent facility planning are underway. The lease includes multiple designated sites at the airport for training, staging, and future development.
III. DISCUSSION:
The proposed lease provides for a term of up to three (3) years or until a permanent lease agreement is executed, whichever occurs first.
Key provisions of the agreement include:
Leased Areas:
- Site A (~13,000 sq. ft.) for modular facilities and future hangar development
- Site B (~800,000–900,000 sq. ft.) for parachute landing and training operations
- Site C (~14,000 sq. ft.) for classroom, office, and operational support improvements
Rent Structure:
- $12,000 annually ($1,000 per month)
Use and Operations:
- Aviation-related training including parachute and powered paraglider activities
- Compliance with all FAA, Department of Defense, and local regulations
- Lessee responsible for construction, maintenance, and operation of improvements
Improvements and Facilities:
- Temporary modular structures allowed during initial phases
- Future development includes classroom space, office/lounge, packing areas, and hangar pad
- City retains option to purchase improvements at fair market value upon lease termination
City Responsibilities:
- Maintain runway, taxiways, and airport infrastructure
- Provide utility access to connection points
- Support safe and compliant airport operations
This agreement allows the City to activate underutilized airport property, support economic activity, and position the airport for future aviation-related development while maintaining compliance with FAA requirements and preserving long-term flexibility.
IV. ALTERNATIVES:
- Do not approve the agreement – This would delay or prevent activation of the airport site for this use and forego near-term revenue and economic activity.
- Direct staff to renegotiate terms – Council may request modifications to rent, term, or operational provisions prior to approval.
V. FISCAL IMPACT:
The agreement provides $12,000 annually in lease revenue.
Additional indirect fiscal benefits may include increased fuel sales, economic activity associated with training operations, and future long-term lease or development opportunities. The City’s primary costs are limited to standard airport maintenance obligations already within existing operational responsibilities. | | |