Agenda

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Item # 4.

Council Meeting

Meeting Date:	08/09/2022
Department:	Airport
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Consider Action on a Resolution Consenting to the Sale and Assignment of the Ground Lease Between 6200 GP, LLC to RR Investments, Inc. for Commercial Office and Aeronautical Use on the Airport Property Located at 4550 Jimmy Doolittle Drive; and Authorizing the City Manager to Execute the Consent of Landlord, as Required Under the Ground Lease.

BACKGROUND:

6200 GP, LLC (Assignor) is requesting the Town of Addison give its consent to the proposed sale and assignment of 4550 Jimmy Doolittle Drive at Addison Airport from 6200 GP, LLC to RR Investments, Inc. (Assignee).

The Ground Lease was entered into in May 1984 with Hangar Six, Inc. and was subsequently sold and assigned to Turbine Aircraft Services, Inc. in July 2002. In January 2014, the property was sold and assigned to 6200 GP, LLC. The Ground Lease, as amended and modified, is due to expire in 2048.

The building improvements consist of approximately 21,000 square feet of conventional hangar space; 7,280 square feet of office/shop space; and approximately 43,000 square feet of dedicated aircraft apron fronting Taxiway Alpha.

RR Investments, Inc. (d/b/a Million Air Dallas) is one of the airport’s three Fixed-base Operators (FBOs) and has been in operation on the field for almost 40 years.

The City Attorney has reviewed the proposed Assignment of Ground Lease Agreement with Consent of Landlord and finds the document acceptable for the Town’s purposes. After the City Manager executes the Consent of Landlord, airport management will deliver the agreement in trust to the escrow agent facilitating the transaction closing to be executed by the parties. Afterwards, the escrow agent will be instructed to deliver a publicly recorded copy of the fully executed document to the Town for its records.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Sale and Assignment of the Ground Leasehold from 6200 GP, LLC
Subject Location