Long Beach, CA
File #: 18-0156    Version: 1 Name: LBA - Ground Lease w/LB Airport Hangar Owner D5
Type: Contract Status: CCIS
File created: 2/2/2018 In control: City Council
On agenda: 2/20/2018 Final action: 2/20/2018
Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Ground Lease with Long Beach Airport Hangar Owner LLC, a Delaware limited liability company, for City-owned property at 3205 Lakewood Boulevard at the Long Beach Airport. (District 5)
Sponsors: Long Beach Airport
Attachments: 1. 022018-C-16sr&att.pdf
TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Ground Lease with Long Beach Airport Hangar Owner LLC, a Delaware limited liability company, for City-owned property at 3205 Lakewood Boulevard at the Long Beach Airport. (District 5)

DISCUSSION
In 1997, the City Council authorized the execution of Lease No. 25418 with Advanced Aerodynamics & Structures, Inc., predecessor-in-interest to Long Beach Airport Hangar Owner, LLC, an affiliate of Macquarie Corporate and Asset Finance (Macquarie), for the development of approximately ten acres of land at 3205 Lakewood Boulevard (Facility) at the Long Beach Airport (Airport). This facility currently houses the City of Long Beach (City) Fire Department Headquarters, the City’s Police Department Field Support Division, and the Department of Homeland Security’s Forensics Laboratory. Approximately 40,000 square feet of space in the facility’s hangar remains vacant.

Macquarie has been engaged with Spartan College of Aeronautics (Spartan) to sublease the vacant hangar space to relocate to the Airport. Spartan is currently located in Inglewood, California, near Los Angeles International Airport (LAX), but will soon be displaced. Spartan’s presence at the Airport would complement other educational institutions on Airport property, including the Embry-Riddle Aeronautical University at the Long Beach Airport Business Park and DeVry University at the Kilroy Airport Center.

The facility was not originally designed and constructed to provide sufficient parking to accommodate an educational school use. The City and Airport are supportive of Spartan’s relocation and have identified undeveloped land adjacent to Macquarie’s existing parking lot for Macquarie’s construction of a secondary parking lot containing approximately 250 parking spaces for Spartan staff and students (attachment).

The proposed Ground Lease contains the following major terms and provisions:

· Landlo...

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