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Item # 7.

Council Meeting

Meeting Date:	09/08/2020
Department:	Airport
Pillars:	Excellence in Transportation Systems

AGENDA CAPTION:

Consider Action on a Resolution to Approve the Third Amendment to the Concourse Plaza II LTD., Ground Lease for the Property Located at 16051 Addison Road at Addison Airport, and Authorize the City Manager to Execute the Agreement.

BACKGROUND:

Concourse Plaza II, LTD., the owner of the leasehold improvements located at 16051 Addison Road at Addison Airport, is requesting the Town of Addison's consent to a proposed Third Amendment to the Ground Lease to extend the lease term by an additional six years.

On August 14, 2018, the council approved the Second Amendment to Ground Lease which, among other things, required the tenant to complete no less than $1,500,000 in capital repairs and improvements necessary to renovate the existing office building improvements within the first 36- months of the amendment's effective date. Concourse Plaza satisfactorily completed the required capital repairs and improvements with their actual construction costs exceeding the stipulated amount by $492,270 (33%), which is the basis and justification for the Tenant's request for the additional six years of lease term.

This Third Amendment extends the current lease term by 72 months to September 30, 2060 and all other terms and conditions remain the same. The City Attorney has approved this Third Amendment to Ground Lease as to form.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Concourse Plaza II LTD., Ground Lease
Recommendation Memo
Map