TITLE
Recommendation to authorize City Manager to execute a Consent to Assignment and Assumption of Lease No. 20556 from Petrowings Limited to Airspace LLC, and a Consent to Sublease from Airspace LLC to Air Rutter International, for City-owned property at 4310 Donald Douglas Drive. (District 5)
DISCUSSION
On November 15, 1988, the City Council authorized the execution of Lease No. 20556 with Petrowings Limited for City-owned property at 4310 Donald Douglas Drive (Premises) at the Long Beach Airport. The Lease will terminate on November 30,2028.
The Premises consists of approximately 3.35 acres, including 33,000 square feet of hangar space, 10,000 square feet of office space, and 2,000 square feet of workshop space (See attached vicinity map).
Petrowings has requested the assignment of the Lease to Airspace LLC. Concurrently, Airspace LLC has requested to sublease the premises to Air Rutter International (ARI) to conduct aircraft charter operations, subject to the terms and conditions of the Airport's Rules and Regulations, Minimum Standards for Aeronautical Activities, and Airport Noise Compatibility Ordinance (Chapter 16.43 of the Municipal Code).
Real estate consulting firm Keyser Marston and Associates (KMA) has reviewed the financial background and experience of Airspace LLC and advised that Airspace LLC has the financial capability and experience to serve as the City's Lessee. Staff has reviewed the proposed Consent to Assignment and Assumption of Lease and the Consent to Sublease documents and found them to be consistent with the Lease requirements. City Council authorization is required for execution of these documents.
This letter was reviewed by Deputy City Attorney Everett L. Glenn on November 15, 2005 and Budget Management Officer David Wodynski on November 17, 2005.
TIMING CONSIDERATIONS
City Council action is requested on December 13, 2005, in an effort to complete this transaction before the end of the year.
FISCAL IMPACT
Monthly rent...
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