On July 23, 2012, the City Council approved a new twenty-five year Commercial Aviation Ground Lease with Lynch Flying Service, Inc., DBA Edwards Jet Center (EJC) for a large future aircraft hangar on a vacant, 73,094 square foot parcel known as Commercial Lot 8, located at the east end of the Airport. In conjunction with approval of the new Ground Lease, the City Council approved a Lessor's Consent to Assignment of EJC's interest in the Ground Lease to Stockman Bank to secure the financing for construction of the new hangar.

The hangar construction is nearing completion and EJC now desires to assign its interest in the Ground Lease to EBH, LLC, another entity in its family of companies. EBH will also assume the bank note from EJC on the new hangar, and as a result, Stockman Bank desires to revise the Lessor's Consent to Assignment to reflect the assignment and transfer of the leasehold interest from EJC to EBH, and EBH's assumption of EJC's bank note. Copies of both the Assignment and Transfer of Lease and the revised Lessor's Consent to Assignment are on file in the City Clerk's Office.

The City Council may:

• Approve both the Assignment and Transfer of Lease from EJC to EBH, LLC, and the revised Lessor's Consent to Assignment to Stockman Bank to secure the bank's financing of the construction of the new hangar built on this parcel and to reflect EBH, LLC's assumption of EJC's bank note on this hangar; or
• Not approve both the Assignment and Transfer of Lease from EJC to EBH, LLC, and the revised Lessor's Consent to Assignment to Stockman Bank to secure the bank's financing of the construction of the new hangar built on this parcel and to reflect EBH, LLC's assumption of EJC's bank note on this hangar.

Approval of both the Assignment and Transfer of the Lease and the revised Lessor's Consent to Assignment will have no direct financial impact to the annual Lease revenues to be paid to the City.

Staff recommends the City Council approve both the Assignment and Transfer of the Lease from EJC to EBH, LLC, and the revised Lessor's Consent to Assignment to Stockman Bank to secure the bank's financing for the new hangar construction at the Airport and to reflect EJC's assignment and transfer of the leasehold interest to EBH, LLC.