Agenda

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Item # 13.

Council Meeting

Meeting Date:	12/13/2022
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 Authorizing a Conventional Hangar Lease for Commercial Aeronautical Use with OptiSky, LLC for the Property Located at 4511 Eddie Rickenbacker Drive and Authorizing the City Manager to Execute the Agreement.

BACKGROUND:

OptiSky, LLC is an aeronautical service provider that has been operating at Addison Airport for 20+ years. OptiSky has been the subtenant of the ground-leased property located at 4511 Eddie Rickenbacker at Addison Airport since 2010. The underlying ground lease (described below) is due to expire December 31, 2022, at which time the Town will take full ownership and title of the property and building improvements. Airport Management is proposing the Town enter into a Conventional Hangar Lease for Commercial Aviation Use to commence January 1, 2023, allowing OptiSky, LLC to continue its possession and occupancy of the premises, without interruption, until July 31, 2025, subject to the terms and conditions of the lease as summarized below.

As previously stated, 4511 Eddie Rickenbacker is a ground-leased property which commenced in January 1983, between the Town of Addison and Mr. Bert A. Corry. The ground lease was later conveyed to Mr. Corry’s daughter, Bertie Carol Neu (“Corry Ground Lease”) who is recognized as the current ground tenant. The leased premises consist of approximately 13,600 square feet of conventional office and hangar space and approximately 20,000 square feet of dedicated asphalt aircraft apron first constructed circa 1975; all regarded to be in fair condition.

Upon the Corry Ground Lease expiration and the transfer of ownership of the building improvements to the Town of Addison, it is the airport’s strategic objective to commercially lease the property until July 2025, when the neighboring ground leasehold at 4689 Eddie Rickenbacker expires and ownership of the respective building improvements also revert to the Town. At such time it is anticipated the land comprising 4511 and 4689 Eddie Rickenbacker will be merged into a single, larger parcel and marketed as an airport redevelopment opportunity.

The proposed Conventional Hangar Lease for Commercial Aviation Use with OptiSky, LLC is subject to the following terms and conditions:

Term commences January 1, 2023, and expires July 31, 2025, unless either party delivers a 6-month advance written notice to the other of its intention to early terminate the Lease;
Annual Base Rent is $108,800 payable in twelve equal monthly installments of $9,066.67. The annual base rent approximates $8.00 per building square foot;
Annual Base Rent is subject to annual CPI adjustment as described in the Lease;
All utilities are to be paid by tenant as set forth in Exhibit D of the Lease;
Permitted use of the leased premises is consistent with OptiSky’s current known operations, except for the storage of non-operational aircraft is prohibited;
Maintenance responsibilities are allocated between landlord and tenant pursuant to Exhibit E of the Lease.

The Conventional Hangar Lease for Commercial Aeronautical Use Agreement is accepted to form by the City Attorney.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Optisky LLC
Location Map