TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for the Third Amendment to Amended and Restated Fixed Base Operation Lease No. 7819 with Fuel Controls, Inc., a California corporation, for City-owned property at 3605 East Spring Street. (District 5)
DISCUSSION
Since 1971, approximately seven acres of City-owned property at 3605 East Spring Street at the Long Beach Airport (Airport) has been leased to Fuel Controls, Inc. (Fuel Controls), for aviation purposes, under Amended and Restated Fixed Base Operation Lease No. 7819 (Ground Lease). Between 1997 and 2012, the Ground Lease was amended to expand the leased premises, amend certain financial terms, and extend the term of the Lease through August 31, 2023. Since 1990, Fuel Controls has subleased a portion of the leasehold to Federal Express Corporation (FedEx), a worldwide cargo/freight operator and one of two cargo/freight operators at the Airport. FedEx continues to occupy office space in the building and occupies the majority of the hangar and ramp space on the leasehold.
Fuel Controls has requested an extension of the Ground Lease to continue its operations with FedEx and to amortize over a ten-year term a series of capital improvements to the leasehold. Negotiations between staff and Fuel Controls have resulted in a proposed Third Amendment to Amended and Restated Fixed Base Operation Lease No. 7819 containing the following major terms and provisions:
· Landlord: City of Long Beach, a municipal corporation.
· Tenant: Fuel Controls, Inc., a California corporation.
· Leased Premises: Approximately 7.482 acres of land at 3605 East Spring Street at the Airport.
· Commencement Date: The Commencement Date for the Third Amendment will be February 1, 2021.
· Term: The term of the Ground Lease will be extended through January 31, 2031, to provide for a full ten years from the Commencement Date.
· Rent: The current monthly ground rent is $13,12...
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