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Item # 4.

Council Meeting

Meeting Date:	05/25/2021
Department:	Airport
Pillars:	Excellence in Transportation Systems

AGENDA CAPTION:

Consider Action on a Resolution Approving a Sale and Assignment of Ground Leasehold Between Concourse Plaza II, LTD. and 16051 Addison, LLC for Commercial Office and Aeronautical use on Property Located at 16051 Addison Road Together with Consent to Leasehold Mortgage; and Authorizing the City Manager to Execute the Consent of Landlord as Required by the Ground Lease.

BACKGROUND:

Concourse Plaza II, LTD. (Assignor) requests the Town of Addison give its consent to the proposed sale and assignment of 16051 Addison Road at Addison Airport from Concourse Plaza II, LTD. to 16051 Addison, LLC. (Assignee). The transaction is subject to the Town’s consent to the creation of a leasehold mortgage for the purpose to finance the acquisition of the property by the Assignee.

The Ground Lease was first entered into in October of 1983 with Brunnell Properties, Inc. who subsequently sold and assigned their leasehold interest to Concourse Plaza, LTD. in December of 1983. Built in 1984, the building improvements consist of a 43,000 square foot, three-story multi-tenant office building with five executive hangars attached on the back side (west facing) of the building. In 2018 the Town executed a Second Amendment to Ground Lease, which among other things, extended the ground lease term 30-years in consideration of the Tenant completing $1.5M in capital repairs and improvements. In 2019, a Third Amendment to Ground Lease was entered into extending the ground lease term an additional 6-years, or to September 30, 2060, in consideration of an additional $500,000 in capital repairs and improvements completed by the Tenant.

16051 Addison, LLC is a single-purpose entity created for the purpose of taking title to the building improvements and to hold the leasehold interests at 16051 Addison Road. 16051 Addison, LLC is wholly owned and managed by Rampart Realty Holdings, LLC. Christopher Frain, of Littleton, Co., is the majority owner and manager for each of the two entities.

16051 Addison, LLC intends to sublease the office and hangar space as a multi-tenant office building. This includes leasing 25,000 square feet to their parent company, Tyton Holdings, Inc., a private investment and equity firm which is relocating their corporate headquarters from Littleton, Colorado to Addison. Tyton will also base their two corporate aircraft on the premises.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Concourse Plaza II Ground Lease
Recommendation Memo
Location Map