TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a new sublease to Lease No. 35335 between LGB CA Holdings, LLC, a Delaware limited liability company, dba Atlantic Aviation, and the City of Long Beach, for leased office space at 3250 Airflite Way for continued occupancy by the Airside Operations and Noise Compliance Divisions of the Airport Department. (Districts 4,5)
Levine Act: Yes
DISCUSSION
On January 20, 1987, the City Council authorized the execution of Lease No. 19331 (Master Lease) with Airflite, predecessor-in-interest to Atlantic Aviation (Master Tenant), for the development of approximately 12 acres of land at the Long Beach Airport (Airport). The Master Tenant provides fixed base operator (FBO) services for general aviation, including the leasing of office space, meeting facilities, aircraft hangars, aircraft tie-downs, and the sale of fuel to based and transient aircraft.
On March 13, 2018, the City Council authorized the execution of Sublease No. 34904 (Sublease) with the Master Tenant, then dba Ross Aviation, for approximately 2,736 sq. ft. of office space at 3250 Airflite Way (Subleased Premises) for an initial term of approximately five years with an option to renew for an additional five years. In 2019, the Master Lease was amended and restated (Lease No. 35335).
The Subleased Premises is utilized by the Airport’s Airside Operations and Noise Compliance Divisions, benefiting from office space with both direct airfield access and visibility. The Master Tenant and the Airport initiated negotiations for a modified extension term, with the understanding that the existing Sublease terms would be honored until a new agreement was approved and executed. Negotiations have concluded and a new sublease has been negotiated containing the following major terms and provisions:
· Master Lessor: City of Long Beach, a municipal corporation.
· Master Tenant: LGB CA Holdings, LLC, a Delaware limited...
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