TITLE
Recommendation to authorize City Manager, or designee, to bifurcate Lease No. 20556 by executing all documents necessary for an Amended and Restated Lease between the City of Long Beach and Airspace, LLC, a Delaware limited liability company, for City-owned property consisting of Parcels 1 and 4 located at 4310 Donald Douglas Drive at the Long Beach Airport; and, executing all documents necessary for an Amended and Restated Lease between the City of Long Beach and Brahma Properties, LLC, a California limited liability company, for City-owned property consisting of Parcel 3 located at 4310 Donald Douglas Drive at the Long Beach Airport. (District 5)
DISCUSSION
On November 15, 1988, the City Council authorized the execution of a 40-year Fixed Base Operation Lease No. 20556 (Lease) with Petrowings Limited, predecessor in interest to Airspace, LLC (Airspace), for approximately 3.56 acres (AC) of land for the development of aviation-related facilities at 4310 Donald Douglas Drive at the Long Beach Airport (Airport). The Lease, originally consisting of Parcels 1 through 3, was amended in 2000 to modify the leased premises to Parcels 1, 3 and 4.
In 2003, as allowed under the terms of the Lease, the City consented to the assignment of Parcel 3, consisting of the fuel farm, to Brahma Properties (Brahma). This action intended to bifurcate the Lease into two leases; however, this intended action was never completed. Consequently, there is one lease with two separate tenants. Parcel 3 is currently subleased to Airspace for use with its operations. Airspace operates the JFI JetCenter on Parcels 1 and 4 (3.35 AC), containing approximately 40,900 square feet (SF) of aircraft hangar space and 19,700 SF of office space (Attachment). The Lease will terminate on November 30, 2028.
On October 2, 2001, the City Council authorized the execution of Amended and Restated Lease No. 30740 with the County of Los Angeles (County) for approximately four acres of property...
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