On July 27, 2015, the City Council approved a new Lease with Edwards Jet Center (EJC) on a vacant 64,927 square foot parcel known as Commercial Lot 9 located at the east end of the Airport.  EJC will be constructing a new large aircraft hangar on this parcel that formerly housed the rental car wash facilities.  At the July 27 meeting, the City Council also approved an Assignment of EJC's interest in the Lot 9 Lease to secure EJC's financing arrangements.  At that time, EJC intended to obtain financing from First Interstate Bank, and the Assignment document was prepared for that purpose.  EJC has since decided to obtain its financing from Yellowstone Bank instead of First Interstate Bank, which necessitates revising the Assignment document to assign the security interest to Yellowstone Bank instead of First Interstate Bank.  A new Lessor's Consent to Assignment has been prepared for Yellowstone Bank that will replace the previous document prepared for First Interstate Bank.
 
Additionally, the implementation of the new Lot 9 Lease required adjusting the boundaries of the adjacent Commercial Lot 8 Lease, also with EJC.   Amendment One to the Commercial Aviation Ground Lease on Lot 8 reduced the leasehold by 709 square feet, and also updated some of the standard lease language. This Amendment was also approved by the City Council at its July 27, 2015 meeting.  An error in the name of the Lessee was discovered, thereby also requiring a revision to the Amendment document.  With City Council approval, EJC had previously assigned its interest in the Lot 8 Lease to another entity in its family of companies, EBH, LLC.  Amendment One is revised to reflect the current Lessee as EBH, LLC, instead of Lynch Flying Service, Inc., DBA Edwards Jet Center.  Copies of the new Lessor's Consent to Assignment, and revised Amendment One are on file in the City Clerk's Office.
 

City Council may:

• Approve a new Lessor's Consent to Assignment to Yellowstone Bank for the Lot 9 Lease, and a revised Amendment One for the Lot 8 Lease; or
• Disapprove a new Lessor's Consent to Assignment to Yellowstone Bank for the Lot 9 Lease, and a revised Amendment One for the Lot 8 Lease.

There is no financial impact from either the revised Lessor's Consent to Assignment or the revised Amendment One.  These revised documents will merely replace the previous documents approved on July 27.
 

Staff recommends that City Council authorize the Mayor to execute (1) a new Lessor's Consent to Assignment to Yellowstone Bank, to secure the bank's financing to EJC for EJC's new Lot 9 hangar construction at the Airport, and (2) a revised Amendment One to the Lot 8 Lease to revise the Lessee's name to EBH, LLC.