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Item # 4.c.

City Council (FY24)

Meeting Date:	12/12/2023
Department:	Airport
Pillars:	Excellence in Asset Management Excellence in Transportation Systems
Milestones:	Leverage Airport assets to maximize business growth and expansion Improve all modes of transportation with infrastructure in an acceptable condition and well maintained

AGENDA CAPTION:

Consider action on a Resolution to approve a fourth amendment to Ground Lease between the Town of Addison, Texas, and 16051 Addison LLC; authorizing the City Manager to execute the amendment and providing an effective date.

BACKGROUND:

16051 Addison LLC (“Ground Tenant”) acquired the Ground Lease from Concourse Plaza II, Ltd. on June 8, 2021. The Ground Lease is due to expire September 30, 2060. The leased premises, located at 16051 Addison Road at Addison Airport, are improved with a 42,916 square-foot, two-story, multi-tenant office building with five attached aircraft hangars. Tyton Holdings, parent company of the Ground Tenant, is the primary user and occupant of the office building.

The Ground Tenant desires to increase its leased premises by 6,658 gross square feet as described in Exhibit B-1 and B-2 of the proposed fourth amendment. Consequently, the annual base rent is to be proportionately increased to $65,576, an increase of $5,127 per annum. Further, Landlord and Tenant desire to extend the term of the Ground Lease by five years so that it expires September 30, 2065. All other terms and conditions of the Ground Lease remain unchanged.

With the additional land subject to the Ground Lease, the Ground Tenant intends to demolish the existing five hangars and construct two larger hangars in their place to accommodate Tyton Holdings’ corporate aircraft. The added land is necessary to provide sufficient separation between adjacent buildings and operational clearances.

16051 Addison Road	Current	Amended	Increase
Leased Premises	78,506 SF	85,164 SF	6,658 SF
Annual Base Rent	$60,518.28	$65,576.28	$5,058.00
Monthly Base Rent	$5,043.19	$5464.69	$421.50
Rent PSF	$0.77	$0.77	$0.00

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Fourth Amendment to GL
Location Map