TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Fixed Base Operation Lease No. 21569 between the City of Long Beach and Gulfstream Aerospace Corporation, a California corporation, for City-owned property at 4150 Donald Douglas Drive and 3521 East Spring Street at the Long Beach Airport by bifurcating the leased premises into two separate leases and extending the current extension option deadline under the existing lease; and
Authorize City Manager, or designee, to execute all documents necessary to provide for a potential assignment of the bifurcated leases, without amendment to the material terms thereof. (District 5)
Levine Act: Yes
DISCUSSION
On December 22, 1987, the City Council authorized the execution of Fixed Base Operation Lease No. 21569 (Lease) with Gulfstream Aerospace Corporation (Gulfstream), successor in interest to 7701 Woodley Avenue Corporation, for City-owned property at 4150 Donald Douglas Drive (Main Site) at the Long Beach Airport (Airport). Amended seven times for general administrative changes, on January 6, 2015, the City Council authorized the Eighth Amendment to the Lease to expand the leased premises to include approximately six acres of land at 3521 E. Spring Street (Spring Street Site). The Spring Street Site, formerly leased by the Boeing Company, expanded Gulfstream’s maintenance and repair services capacity to the southside of the Airport including a two-story office building, an aircraft hangar, and an aircraft parking ramp with direct access to the airfield.
In October 2020, Gulfstream announced plans to close its facilities at the Airport. Maintenance and repair operations at the Spring Street Site have continued at the Airport, while all services at the Main Site were relocated to other Gulfstream locations. Gulfstream has been actively marketing the assignment of its leasehold interest in the Main Site, while addressing facility repair and remediation require...
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