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AGENDA ITEM NO. 16.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 01/28/2025 Originating Department: City Attorney |
City Manager:
Department Head:
SUBJECT:
Agreement with Hawthorne Airport LLC Regarding Taxiway Rehabilitation at the Hawthorne Municipal Airport
RECOMMENDED MOTION:
Staff Recommends that the City Council Approve the Agreement with Hawthorne Airport LLC Regarding Taxiway Rehabilitation at the Airport.
DISCUSSION:
Hawthorne Airport LLC (HA LLC) are the lessee of the Master Ground Lease at the Hawthorne Municipal Airport (Airport). In or around 2023, a dispute arose over certain section of the Airport which the City leased out to Zelman. HA LLC claimed that they had the first right to the leased land. The City was receiving $10,000 per month from Zelman for the lease. Zelman subleased the land to Space X for the same amount.
HA LLC brought a lawsuit against the City, Zelman and Space X. The case was settled in 2024 in which HA LLC took possession of the land and agreed to pass the Space X rent payments of $10,000 to the City. HA LLC intends on developing more hangars on the land. In anticipation of the hangar development, HA LLC proposed to rehabilitate the taxiway in front of the proposed hangars at their own cost. The rehabilitation would strengthen the taxiway to support heavier airplanes. This agreement is limited to the taxiway rehabilitation. The agreement clearly states that it will not result in any vesting or entitlements to the hangar development because the hangar developments require additional steps, including, CEQA study and an approval from California Department of Toxic Substances Control.
HA LLC brought a lawsuit against the City, Zelman and Space X. The case was settled in 2024 in which HA LLC took possession of the land and agreed to pass the Space X rent payments of $10,000 to the City. HA LLC intends on developing more hangars on the land. In anticipation of the hangar development, HA LLC proposed to rehabilitate the taxiway in front of the proposed hangars at their own cost. The rehabilitation would strengthen the taxiway to support heavier airplanes. This agreement is limited to the taxiway rehabilitation. The agreement clearly states that it will not result in any vesting or entitlements to the hangar development because the hangar developments require additional steps, including, CEQA study and an approval from California Department of Toxic Substances Control.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
The rehabilitation of the taxiway is an improvement for the City's airport.
FISCAL IMPACT:
None
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.