TITLE
Recommendation to authorize City Manager to execute the Second Amendment to Lease No. 19380 with McDonnell Douglas Corporation, a Maryland corporation, for City-owned property at the Long Beach Airport at the northwest corner of E. Wardlow Road and Globemaster Way for an extended five-year term, five-day term. (District 5)
DISCUSSION
On June 10, 1986, the City Council authorized the execution of Lease No. 19380 (Lease) between the City of Long Beach and the McDonnell Douglas Corporation (MDC-Boeing) for a twenty-year term for the use of City-owned property at the northwest corner of E. Wardlow Road and Globemaster Way (see Attachment) to be used primarily for employee parking for the C-17 aircraft-manufacturing program. On December 29, 1987, the City Council approved the First Amendment to Lease No.
19380 providing for a corrected legal description of the leased premises.
The Lease terminated on January 26, 2007, and MDC-Boeing remains on the leased premises on a month-to-month holdover status. Under the provisions of the Lease, MDC-Boeing may extend the term for up to three additional periods of 10 years each totaling 30 years and may terminate the Lease upon one-year prior written notice. However, due to the unknown longevity of the C-17 aircraft-manufacturing program, MDC-Boeing has requested shorter lease extension terms comprised of six periods of 5 years each totaling 30 years and a shorter, six-month termination period to address unforeseen circumstances.
In an effort to accommodate the needs of the C-17 aircraft-manufacturing program, a Second Amendment to Lease No. 19380 has been negotiated with the following major terms and provisions:
. Lease Term: The term of the Lease shall be extended for a five-year, five-day period and will terminate on January 31,2012.
. Options to Extend: The term of the Lease may be further extended for up to five consecutive 5-year terms. .
. Premises: The legal description of the leased premises is amended due ...
Click here for full text