TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for the Fourth Amendment to Lease
No. 24271 with Flight Safety International, LLC, a New York corporation, for City-owned property at 4330 East Donald Douglas Drive. (District 5)
DISCUSSION
On October 31, 1995, the City Council authorized the execution of Ground Lease No. 24271 with Flight Safety International (Flight Safety), for City-owned property at 4330 East Donald Douglas Drive (Leased Premises) at the Long Beach Airport (Airport). From this location, Flight Safety provides advanced flight simulator training to commercial pilots, with a focus on Gulfstream GIV, G450, G550, and G650, as well as Cessna Citation II and V, and Beechcraft King Air 200 aircraft. Flight Safety also provides maintenance training for all in-production Gulfstream aircraft in partnership with Gulfstream under their Total Technical Training Program.
The current Ground Lease is set to expire on October 31, 2020. However, Flight Safety is afforded two remaining five-year extension options in the Ground Lease for a potential termination date of October 31, 2030. Concurrent with each five-year option, the rent is to be adjusted to fair market with a maximum increase of 25 percent over the current rental amount. Given recent appraisals of similar properties at the Airport, the rental adjustment will reflect the maximum increase provided for under the terms of the Ground Lease.
The Leased Premises currently measure 1.88 acres. An approximate 0.14 acres of an adjacent parking area is currently utilized by Flight Safety under an Airport Commercial Use Permit on a month-to-month basis. This parking area was created during the construction of Parking Structure B and the southerly extension of Donald Douglas Drive to Lakewood Boulevard. This parking area also serves as access to Flight Safety’s parking lot behind its facility. The Airport is seeking to incorporate this parking ...
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