Williams Enterprises entered into a Non-Commercial Aviation Ground Lease on March 27, 2000 for a 33,120 square foot parcel on the west end of the Airport, and subsequently constructed a 70 ft. x 140 ft. hangar on the parcel with a 70 ft. x 20 ft. office addition.  On July 14, 2008, the City Council approved Amendment One to the Ground Lease, adding 960 square feet to the leased parcel to accommodate the size of both the hangar and the office addition, and an Assignment and Transfer of the amended Ground Lease from Williams Enterprises to B & J Properties Limited, LLC, the current Lessee.  B & J Properties subleased its hangar to Skysource Aviation, and has now requested additional space be added to the Ground Lease to accommodate increased parking needs for its new hangar occupants.  Amendment Two amends the Ground Lease to add 4,992 more square feet to the leased parcel for a total of 39,072 square feet, and to amend the "specific uses" section of the Lease to allow the limited commercial operations that Skysource Aviation is performing in the hangar. Additionally, since the original 2000 Ground Lease is dated and requires updated language, the Ground Lease is also being amended via Amendment Two to reflect current standard lease language regarding market adjustments, specific privileges, insurance, and non-discrimination language.  A copy of Amendment Two is on file in the City Clerk's office.
 

City Council may:

• Approve Amendment Two adding space, amending specific uses, and updating lease language; or
• Disapprove Amendment Two adding space, amending specific uses, and updating lease language.

The addition of the 4,992 square feet to the leased parcel will increase annual rental revenue to the City by $1,277.45 for the current year.  Annual rent will continue to be adjusted each year on the anniversary date by the Department of Labor Consumer Price Index For All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics, for the previous twelve months to keep pace with annual inflation.
 

Staff recommends City Council approve Amendment Two to the Non-Commercial Aviation Ground Lease with B & J Properties Limited, LLC on a parcel located at 2415 Overlook Drive, adding square footage to the leased parcel, amending specific uses, and updating standard lease clauses.