TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for the Second Amendment to Amended and Restated Fixed Base Operation Lease No. 7819 between the City of Long Beach and Fuel Controls, Inc., a California corporation, for City-owned property at 3605 East Spring Street at the Long Beach Airport. (District 5)
DISCUSSION
Since 1971, approximately seven acres of City-owned property at 3605 East Spring Street at the Long Beach Airport has been leased under a forty-year lease for aviation purposes. In 1997, the City Council authorized the execution of Amended and Restated Fixed Base Operation Lease No. 7819 (Lease) with Fuel Controls, Inc. (Fuel Controls), to expand the leased premises and amend certain financial terms. In 2000, the City Council authorized the execution of the First Amendment, which extended the term of the Lease through October 31, 2020.
Since 1990, Fuel Controls has subleased a majority portion of the leased premises to the Federal Express Corporation (FedEx), a worldwide cargo/freight operator. FedEx is one of two cargo/freight operators at the Long Beach Airport from that services the FedEx distribution center in Signal Hill, California. FedEx would like to maintain its presence at the Long Beach Airport for at least 10 more years; however, its current sublease with Fuel Controls will terminate on August 31, 2018, and the Lease with Fuel Controls will terminate on October 31, 2020.
In an effort to maintain FedEx’s long-term presence at the Long Beach Airport, staff recommends an amendment to the Lease to extend the term so that Fuel Controls can, in turn, extend the term of the FedEx sublease. The proposed Second Amendment to Amended and Restated Fixed Base Operation Lease No. 7819 will include the following major terms and conditions:
· Landlord: City of Long Beach.
· Tenant: Fuel Controls, Inc., a California corporation.
· Premises: The leased premises consist of approximately 7.482 acres...
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