Agenda

Back to Calendar Return

Item # 16.

Council Meeting

Meeting Date:	06/28/2022
Department:	Airport
Pillars:	Excellence in Transportation Systems
Milestones:	Leverage Airport assets to maximize business growth and expansion Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Present, Discuss, and Consider Action a Resolution Approving an Assignment of Ground Lease Between Scarborough I Airport, L.P. and Bel Air Communities, LLC for the Purpose of Assigning Leasehold Interest in Certain Airport Land Consisting of a Total of .55 Acres of Taxilane Uniform Located at the Addison Airport and Authorizing the City Manager to Execute the Consent of Landlord.

BACKGROUND:

Scarborough I Airport, L.P. (“Scarborough”) and the Town of Addison intend to execute and enter into a ground lease agreement (“Ground Lease”) affecting .55 acres of airport land (“Leased Premises”) abutting and adjacent to the off-airport property located at 16445 Addison Road, subject to the Town’s consent. Pursuant to the terms of the Ground Lease, Scarborough has the option to extend the lease term to forty (40) years provided they reconstruct all the aircraft apron improvements on the Leased Premises and a portion of Taxiway Uniform common area adjacent to the Leased Premises (“Airport Improvements”) pursuant to a separate Developer Participation Agreement by and between the Town and Scarborough.

Upon Scarborough’s satisfactory completion and the Town’s full acceptance of the reconstructed Airport Improvements, Scarborough is requesting the Town to give its consent to Scarborough’s assignment of the Ground Lease and the improvements made to the Leased Premises to Bel Air Communities, LLC, a Delaware limited liability company (“Bel Air Communities”). It is a condition of the buy/sell agreement between Bel Air Communities and Scarborough for Scarborough to satisfactorily reconstruct the aircraft apron and formally secure from the Town the extend lease term. Section 9 of the Ground Lease requires the Landlord to give its prior written consent to any sale, assignment or any other form conveyance of the Ground Lease.

Bel Air Communities is a Plano-based national real estate developer and owner of multi-family and residential communities. Mr. Jerry Guerrero is the owner and manager of Bel Air Communities, LLC. Bel Air Communities is acquiring the off-airport fee simple property located at 16445 Addison Road together with the Leased Premises subject to the Ground Lease to use the existing aeronautical facilities in support of their corporate flight department operations and based aircraft.

The Assignment of Ground Lease, for which the Town will give its consents, obligates Bel Air Communities to all the terms and conditions of the Ground Lease Agreement. Furthermore, Scarborough remains liable and is not released of its covenants, obligations, duties, or responsibilities under the ground lease.

The city attorney has reviewed the Assignment of Ground Lease Agreement and Consent of Landlord and finds both to be acceptable for the Town’s purposes. It is to be noted that the Consent of Landlord executed by the City Manager will be delivered at such time in trust to the escrow agent administering the transaction between the parties, which agreement shall be fully executed by the parties at the closing of the transaction. The escrow agent will be instructed to provide the Town of Addison with a publicly recorded copy of the document for its records.

Approval of the assignment is subject to Scarborough then not being in default of the Ground Lease and satisfactorily achieving Final Completion of the Airport Improvements as defined in the Developer Participation Agreement.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Assignment of Ground Lease Scarborough I Airport LP
Location Map