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AGENDA ITEM NO. 17.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 11/12/2024 Originating Department: City Manager |
City Manager:
Department Head:
SUBJECT:
Hangar 8 Ground Sublease and Purchase and Sale Agreement
RECOMMENDED MOTION:
Staff Recommends that the City Council Approve the Ground Sublease Agreement and the Purchase and Sale Agreement for Hangar 8 at the Hawthorne Municipal Airport.
DISCUSSION:
In the meeting of October 8, 2024, the City Council approved the Non-Disturbance and Attornment Agreements for Hangar 8 and Hangar 13 at the Hawthorne Municipal Airport. As the council is aware, the City is the Master Landlord of the Master Ground Lease with the Lessee, Hawthorne Airport LLC. The said Attornment Agreements essentially states that the City will not interfere with the sublease of Hangars 8 and 13.
Due to a misunderstanding, the Sublease Agreement and the Purchase and Sale Agreement for Hangar 8 were not submitted to the council for approval on October 8th. Although for Hangar 13, only the Non-Disturbance and Attornment Agreement was necessary, for Hangar 8, there were the associated Purchase and Sale Agreement and a Sublease Agreement. Hawthorne Airport LLC seeks to sell Hangar 8 to Michael Osborn, which would also require the ground transfer with a sublease agreement. As the Master Landlord, the city should approve the transaction.
Due to a misunderstanding, the Sublease Agreement and the Purchase and Sale Agreement for Hangar 8 were not submitted to the council for approval on October 8th. Although for Hangar 13, only the Non-Disturbance and Attornment Agreement was necessary, for Hangar 8, there were the associated Purchase and Sale Agreement and a Sublease Agreement. Hawthorne Airport LLC seeks to sell Hangar 8 to Michael Osborn, which would also require the ground transfer with a sublease agreement. As the Master Landlord, the city should approve the transaction.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
1.3 Develop a business support and development collaborative that interfaces directly with existing small and large businesses (support and retention), identifies key sectors (tech, hotels, restaurants) and energetically recruits new business in those sectors (attraction), and coordinates resources to assist growing businesses (expansion). Establish partnerships with entities that can work toward City goals and objectives. Create a database of businesses in the City to track interactions.
FISCAL IMPACT:
None.
NOTICING PROCEDURE:
72 hours posted notice pursuant to Ralph M. Brown Act