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9.
Work Session and Regular Meeting
Meeting Date: 08/09/2016  
Department: Public Works  

AGENDA CAPTION:
Consider A Resolution Consenting To The Renewal Of Conventional Hangar Leases #0220-0101 (4666 Jimmy Doolittle Drive) And #0390-1103 (4540 Glenn Curtiss Drive) With Mercury Air Center Addison DBA Atlantic Aviation For Three-Year Terms Ending On September 30, 2019.
BACKGROUND:
Atlantic Aviation (Atlantic), one of two Fixed Base Operators (FBO) at Addison Airport, has been a tenant at the airport since 1982. In addition to leasing the two conventional hangars that are proposed to be renewed by this action, Atlantic also has three long-term ground leases and a fueling permit. Atlantic leases the two city-owned hangars for overflow parking for their customers and they are currently a tenant in good standing with the Airport.

Both of Atlantic’s current leases expire September 18, 2016 and they are proposing that the leases' terms be extended three-years to September 30, 2019.  Any redevelopment plans for Taxiway Sierra or Taxiway Tango would not occur until after the proposed lease terms end on September 30, 2019. The use of these hangars is in line with both the adopted 2013 Airport Strategic Plan and the Addison Airport FAA Master Plan Update, which was approved on July 12, 2016.  Therefore, staff recommends that both leases be extended by three years, or to September 30, 2019. 

The key lease terms are as follows:
 
Lease 0220-0101 – 4666 Jimmy Doolittle Drive (Hangar S3)       
Three-year lease term (September 19, 2016 through September 30, 2019)              
$6.73 psf (increased from $6.50 psf)
$3,701.50/month rent (increased from $3,575/month)
Subject to annual CPI adjustments upon each anniversary date of the lease
 
Lease 0390-1103 – 4540 Glenn Curtiss Drive (Hangar T5)
Three-year lease term (September 19, 2016 through September 30, 2019)              
$6.52 psf (increased from $6.30 psf)
$3,586.00/month rent (increased from $3,466.67/month)
Subject to annual CPI adjustments upon each anniversary date of the lease
 

 
RECOMMENDATION:
Administration recommends approval.
Attachments
Resolution

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