The Indianapolis Colts LLC, which leases hangar space at Indianapolis International Airport, has renewed its lease there through at least 2019.
And because the NFL team has paid for some improvements to the 19,717-square-foot hangar space, the organization is getting a break on its renewal rate as a result.
On Friday, the Indianapolis Airport Authority approved a lease which begins Sept. 1 and runs through Aug. 31, 2019, with three additional one-year renewal periods after that. The hanger is used by the Colts organization, while players take charter flights from a different part of the airport, according to an IAA spokeswoman.
Under the terms of the lease, the Colts will pay $160,000 per year for the first three years. During the following one-year renewal periods, that rate increases to $162,000; $166,999; and $168,977, respectively.
The fees reflect a rental credit of $136,366, in recognition of $272,732 in improvements the Colts have made to the hangar. Those improvements include installation of new heating, air conditioning and ventilation equipment and a security gate.
Marsha Stone, Indianapolis International Airport’s senior director of commercial enterprise, said the airport routinely shares costs in this way when tenants pay for facility improvements.
“It’s very standard practice when a lease renewal occurs,” Stone said.
The Colts organization has leased the building for its aircraft, flight crews and maintenance support since 2011. A team spokesperson did not respond to a request from IBJ for more information.