On September 25, 2006, John Nash entered into a West End Hangar Ground Lease for two parcels to build a duplex style hangar so he could utilize one side of the duplex hangar and sell the other unit.  The Lease term was for 20 years, beginning October 1, 2006 and terminating on September 30, 2026.  Mr. Nash sold the other hangar unit and assigned the accompanying ground Lease on April 9, 2007 to Jonathan R. Scott.  Mr. Scott now desires to sell his hangar located at 2803 Overlook Drive to another Airport tenant, Julia Holdings, L.L.C.  The hangar sale will also require the ground Lease to be assigned to Julia Holdings, L.L.C.
Since the commencement of this ground Lease, several standard lease requirements have changed; therefore, in conjunction with the Assignment of the 2006 ground Lease, an Amendment Two to the Lease will be implemented on this parcel to bring the lease language up-to-date with standard lease requirements.  A previous Amendment One to correct an error in the description of the premises was approved by the City Council on April 9, 2007.  The term of the amended Lease will not be impacted by this Amendment.

Julia Holdings, L.L.C. also has an existing hangar at the Airport, located at 2521 Overlook Drive, and with the purchase of Mr. Scott's hangar, desires to sell her hangar to a new tenant, Steve J. Inman.  The sale of Julia Holdings, L.L.C.'s current hangar will also require the ground Lease assumed by Julia Holdings, L.L.C. to be assigned to Steve J. Inman.   Julia Holdings, L.L.C. acquired the hangar and assumed the ground Lease from Martin Elshire on November 28, 2005.  The term of this Lease commenced November 1, 1998, and expires on October 31, 2018.  Since the commencement of this Lease, several standard lease requirements have changed; therefore, in conjunction with the Assignment of the 1998 ground Lease assumed by Julia Holdings, L.L.C., an updated Lease with Steve J. Inman will be implemented on this parcel to bring the lease language up-to-date with standard lease requirements and provide the new tenant with additional term. The updated Lease will commence July 1, 2015 and terminate on June 30, 2025, and replace the original 1998 Lease assumed by Julia Holdings, L.L.C.  Both Assignment transactions are interdependent; if one Assignment is not approved, the other Assignment also fails.  Copies of all documents are on file in the City Clerk's Office.
 

City Council may:

• Approve the Assignment and Transfer from Jonathan R. Scott to Julia Holdings, L.L.C., the Amendment Two to the assigned Lease on the parcel at 2803 Overlook Drive, the Assignment and Transfer from Julia Holdings, L.L.C. to Steve J. Inman, and the updated Lease with Steve J. Inman on the parcel located at 2521 Overlook Drive; or
• Disapprove all documents for both transactions.

There is no financial impact from either of these Assignments, Amendment Two to the 2006 Lease assumed by Mr. Scott, or the updated Steve J. Inman Lease.  The names on the Leases change with each Assignment and Transfer and standard lease language is updated through both the new Lease and the Amendment.  The rental rate on the Leases will continue to be adjusted annually on the anniversary of each Lease using the Department of Labor Consumer Price Index for All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics, for the previous twelve (12) month period.

Staff recommends City Council approve the following: (1) Assignment and Transfer of the West End Hangar Ground Lease from Jonathan R. Scott to Julia Holdings, L.L.C., and Amendment Two to this Lease on the parcel located at 2803 Overlook Drive, and (2) the Assignment and Transfer of the 1998 West End Hangar Ground Lease from Julia Holdings, L.L.C. to Steve J. Inman, and Steve J. Inman's updated West End Hangar Ground Lease on the parcel located at 2521 Overlook Drive.