Present, Discuss, and Consider Action on a Resolution to Approve a Ground Lease Agreement Between the Town of Addison and Mercury Air Center - Addison, Inc, (Doing Business As Atlantic Aviation) in the Proximity of 4400 Glenn Curtiss Drive and Authorize the City Manager to Execute the Agreement.

1. 4451 Glenn Curtiss
2. 4453 Glenn Curtiss
3. 4480 Glenn Curtiss
4. 4400 Glenn Curtiss
5. 4540 Glenn Curtiss
6. 4532 Glenn Curtiss
7. 4530 Glenn Curtiss

1. A new ground lease with an initial term of 7 years to encompass multiple existing improvements; and
2. Atlantic Aviation is to make a minimum investment of $14 million over the initial 13 years to obtain a full 40 year term:

• Extended Term #1:  7 Year Base Term (2027) plus 13 years (until 2040) upon completion of the demolition of the existing hangar at 4451 Glenn Curtiss and construction of a larger $6 million dollar jet hangar to be completed 4 years following commencement date (2024)
• Extended Term #2:  Extended Term #1 plus 15 years (until 2055) upon completion of $5.5 million renovation of the FBO terminal and new apron by end of 2027
• Extended Term #3: 5 years (until 2060) upon completion of a $2.5 million renovation of the hangar at 4453 Glenn Curtiss and construction of parking improvements at 4532 Glenn Curtiss and 4530 Glenn Curtiss by end of 2033.

1. The annual ground rental is $1.23 per square foot, or $615,620 annually;
2. The Base Rent is subject to a biennial adjustment (every two years) based upon the percentage change in the Consumers’ Price Index; and  
3. The proposed Ground Lease is subject to the early termination of the leases for 4451 Glenn Curtiss, 4453 Glenn Curtiss, 4480 Glenn Curtiss, and 4400 Glenn Curtiss. A  Memorandum of Lease will be recorded for each lease, showing their early termination and the proposed ground lease taking effect in its place.