TITLE
Recommendation to authorize City Manager to execute the Fourth Amendment to Lease No. 21569 with Gulfstream Aerospace Corporation, a California corporation, for City-owned property at the Long Beach Airport to increase the lease area, adjust the rent and require improvements to the existing building. (District 5)
DISCUSSION
On December 22, 1987, the City Council authorized the execution of Lease No. 21569 between the City of Long Beach and Gulfstream Aerospace Corporation, formerly known as 7701 Woodley Avenue Corporation (Gulfstream), for the use and occupancy of City-owned property and improvements at the Long Beach Airport. The Gulfstream site, measuring approximately 549,292 square feet (Exhibit "A") is primarily used for aircraft manufacturing. The initial term of the Lease will expire March 23, 2012, however, as per the Lease, Gulfstream is afforded one six-year and two five-year Lease extension options for a potential Lease termination date of March 23, 2028.
Earlier this year, an adjacent month-to-month lease of City-owned property with Hagelin Aircraft terminated due to the cessation of operations, freeing up approximately 40,200 square feet of City-owned property at the Airport (Exhibit "B"). The vacant site is adjacent to the Gulfstream site and includes a building comprising 2,538 square feet of office space, 4,590 square feet of workshop space, 3,456 square feet of aircraft hangar space and a 22-space parking lot. The building's interior, roof, and heating, ventilation and air conditioning (HV AC) system are in need of major repair and/or equipment replacement. Improvements to the building are also necessary in order to comply with current ADA requirements and to upgrade the electrical service to the entire building.
An environmental study was conducted and concluded that the vacant site was free of environmental contamination.
Airport staff had discussions with tenants directly adjacent to the vacant site for possible incorporation into t...
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