of Assessment Appeals Case No. 69880.
Rock LLP, Kenneth K. Skogg, Dana B. Baggs, Denver, Colorado,
J. Weiser, Attorney General, Robert H. Dodd, First Assistant
Attorney General, Allison Robinette, Assistant Attorney
General, Denver, Colorado, for Respondent-Appellee.
J. Weiser, Attorney General, Evan P. Brennan, Assistant
Attorney General, Denver, Colorado, for Appellee.
Kristin M. Bronson, City Attorney, Charles Solomon, Assistant
City Attorney, Noah Cecil, Assistant City Attorney, Denver,
Colorado, for Amicus Curiae City and County of Denver.
and Marquez[*] ,
In this property tax case, taxpayer, Rare Air Limited, LLC
(Rare Air), appeals the order of the Board of Assessment
Appeals (BAA) upholding the 2015 tax assessment on its
property. We affirm.
[¶2] This appeal arises out of a dispute
over a property tax assessment made on an aircraft hangar
facility located at Centennial Airport.
[¶3] Centennial Airport, located in Arapahoe
and Douglas Counties, Colorado, is owned by the Arapahoe
County Airport Authority (Authority), which is tax-exempt as
a political subdivision of the State of Colorado. The
Authority holds title to land in Arapahoe and Douglas
[¶4] In 2006, the Authority leased
approximately seventy acres of airport land in Douglas
County, at a rate of five cents per square foot, to Denver
jetCenter (DJC) pursuant to a Master Lease. The initial term
of the Master Lease is forty years with optional extensions
of another fifty years.
[¶5] Under the terms of the Master Lease,
DJC is required to construct, or contract for the
construction of, certain improvements on the leased land.
Those improvements include an aircraft hangar facility to
provide specified aviation-related services. The Master Lease
further provides that DJC may enter into a sublease, with the
Authority's approval, to provide some of the required
improvements and services.
[¶6] DJC entered into a sublease (Ground
Lease) in 2011 with Rare Air to satisfy its obligation to
construct the hangar facility. The Ground Lease covers about
three acres out of the seventy acres DJC leases from the
Authority under the Master Lease. The Ground Lease includes
only land, requires rent payments of thirty-five cents per
square foot, and has a base term of twenty-five years with an
option to extend for an additional five years. If the lease
is extended the rent will be adjusted to include the land and
[¶7] The Ground Lease obligates Rare Air to
construct improvements consisting of a building containing an
aircraft hangar, storage, and office space with a minimum