TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for an Amended and Restated Lease with Bonseph Long Beach, LLC, a Delaware limited liability company, for City-owned property at 3605 East Spring Street at the Long Beach Airport. (Districts 4,5)
DISCUSSION
On March 27, 1997, the City Council authorized the execution of Amended and Restated Fixed Base Operation Lease No. 7891 (Lease) with Fuel Controls, Inc. (FCI), for City-owned property at 3605 East Spring Street (Leased Premises) at the Long Beach Airport (Airport) for aviation purposes. The Lease was amended three times, most recently in December 2020 to extend the term through January 31, 2031.
The Leased Premises historically provided fixed-base operator services. In 1990, the site was primarily subleased to Federal Express (FedEx) for its operations. FedEx terminated its sublease and vacated the Leased Premises in early 2022. In July 2022, FCI assigned its interest in the Leased Premises to Bonseph Long Beach, LLC (Bonseph). Bonseph is an experienced developer in the aviation industry with similar completed developments at airports in California and Texas. Bonseph has hired Aeroplex Group Partners (AGP) as the project and property manager. AGP is affiliated with Aerolease Long Beach, a long standing fixed-based operator at the Airport.
Since acquiring the Leased Premises, Bonseph has formalized a plan for the redevelopment of the site. The plan includes the construction of hangar buildings and associated private aviation terminals, office space, and parking with an estimated $20 million investment, including roof-top solar and energy efficient improvements. Bonseph’s desire to invest is timely as economic recovery continues and the Airport emerges from the challenges of the pandemic. The redevelopment of the Leased Premises will modernize and revitalize the southeast gateway of the Airport’s Spring Street aviation business corridor.
The c...
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