Agenda

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Item # 9.

Work Session and Regular Meeting

Meeting Date:	01/08/2019
Department:	Public Works

AGENDA CAPTION:

Consider Action to Approve a Resolution Approving The Fourth Amendment to a Ground Lease Between the Town of Addison and 6200 GP, LLC for Commercial Aviation Use on Property Located at 4550 Jimmy Doolittle Drive, Authorizing the City Manager to Execute the Agreement, and Providing an Effective Date.

BACKGROUND:

The property at 4550 Jimmy Doolittle Drive is leased to 6200 GP, LLC, per an assignment of the ground lease that was executed in 2014 for private corporate use. 6200 GP, LLC also subleases a portion of the hangar to Turbine Aircraft Services, which provides maintenance and avionics services for aircraft.

A 6,554 square feet portion of the lease site is located on an out parcel on the eastside of Jimmy Doolittle and has been used by the tenant for overflow parking. It is not needed to satisfy the Town's parking requirements for the site. The new Customs and Border Protection facility and a future commercial hangar will be built on the site just to the north of this area. Because the tenant does not need this portion of the lease site for overflow parking, the airport staff approached the tenant to ask if they would consent to the release of that portion so that it can be incorporated into the site for the future hangar. The tenant agreed to release the out parcel back to the Town.

The proposed Fourth Amendment to the lease will remove 6,554 square feet from the lease site of 6200 GP, LLC, and it will be merged into the land that is proposed for a new commercial hangar to be built at some point in the future adjacent to the Customs and Border Protection facility that will be immediately to the north. The changes to the lease are outlined in the table below. The release of the property from 6200 GP, LLC to the Town will result in a reduction of annual rent of $4,294.00. This loss will be recovered when the out parcel is added to the future hangar site and that property is developed. There are no other changes to the terms or conditions of the ground lease.

	Current Terms	Fourth Amendment Term Modifications
Total Land Area (square feet)	104,738	98,184
Annual Rental Amount	$68,827	$64,533
Monthly Rental Amount	$5,736	$5,378
Rental Rate/Square Foot of Land	$.66	$.66

The city attorney has approved to form the Fourth Amendment to Ground Lease for the Town’s purpose.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Fourth Amendment to Ground Lease
Original Ground Lease and Prior Amendments
Aerial