Agenda

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Item # 11.

Council Meeting

Meeting Date:	10/26/2021
Department:	Airport
Pillars:	Excellence in Transportation Systems

AGENDA CAPTION:

Present, Discuss, and Consider Action on a Resolution Approving a Commercial Lease Between the Town of Addison and Jani-King International, Inc. for The Cavanaugh Flight Museum’s Use on Property Located at 4572 Claire Chennault Drive, Addison Airport, and Authorizing the City Manager to Execute the Commercial Lease.

BACKGROUND:

Jani-King International, Inc. (“Jani-King”) is the ground tenant of a certain leasehold located at 4572 Claire Chennault Drive at Addison Airport. On the leased premises, Jani-King operates Cavanaugh Flight Museum, a 501c3 non-profit educational museum devoted to promoting aviation studies and perpetuating America’s aviation heritage. The ground lease is scheduled to expire November 29, 2021, at which time, pursuant to the terms of the ground lease, Jani-King is to vacate the premises and the ownership of the building improvements and leasehold interests shall revert to the Town. Jani-King desires to continue to use and occupy the premises for the purpose of operating Cavanaugh Flight Museum, subject to the terms and conditions of a proposed Conventional Hangar Lease for Commercial Aviation Use agreement.

Among other things, the proposed Conventional Hangar Lease for Commercial Aviation Use agreement provides for:

The agreement to commence on November 30, 2021, immediately upon the expiration of the ground lease without interruption.
A Lease Term of 3-years with the right to early terminate the agreement by either party with six months advance written notice after the secondyear of the term;
Tenant shall pay a commercial market Base Rental of $7,084.00 per month for the demised premises beginning November 30, 2021;

Should the Conventional Hangar Lease for Commercial Aviation Use not be granted by the Town, Jani-King would be required to vacate the premises upon the expiration of the ground lease.

The requested action is consistent with the 2013 Addison Airport Strategic Plan and the 2016 Airport Master Plan.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Commercial Lease 4572 Claire Chennault
Aerial Location Map