Agenda

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10.

Work Session and Regular Meeting

Meeting Date:	06/26/2018
Department:	Public Works

AGENDA CAPTION:

Consider Action to Approve a Resolution for an Amendment to the Ground Lease at 4600 Claire Chennault with AQRD-REP, LLC.

BACKGROUND:

AQRD-REP, LLC, a Texas limited liability company (AQRD) and assignee of the leasehold located at 4600 Claire Chennault at Addison Airport, is requesting the Town's consent to a proposed First Amendment to the Ground Lease (“First Amendment”) subject to and contingent upon the City’s consent to Mission Aire IV, LP’s (as assignor), assignment of the Ground Lease to AQRD.

The First Amendment provides for:

Extending the current lease term by 240 months to June 30, 2057;
Requiring AQRD to satisfactorily complete certain capital repairs and improvements of no less construction value than $485,000.00 within the first 36-months of the First Amendment effective date;
Paying an increased rental (10.26%) beginning with the First Amendment effective date, and;
Modifying and amending other terms and conditions of the Ground Lease, as necessary, to make the terms of the ground lease consistent with the Town’s current lease standards.

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

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - First Amendment of Ground Lease for AQRD