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AGENDA ITEM NO. 12.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 09/23/2025 Originating Department: City Attorney |
City Manager:
Department Head:
SUBJECT:
Ground Sublease Agreement between Hawthorne Airport, LLC, Space, Space Exploration Technologies Corporation and Zelman Hawthorne, LLC.
RECOMMENDED MOTION:
Staff recommends that the city council approve the Ground Sublease Agreement between Hawthorne Airport, LLC (HA LLC), Space Exploration Technologies Corporation (Space X) and Zelman Hawthorne, LLC (Zelman) and authorize the City Manager to execute the Agreement.
DISCUSSION:
In 2023, a lawsuit was filed against the City of Hawthorne by HA LLC in a dispute over a strip of land at the city's municipal airport. The city had leased the disputed land to Zelman. Zelman had subleased the property to Space X. In January of 2024, the City and HA LLC entered into a settlement in which the City gave the lease rights of the disputed property to HA LLC with a condition that they forward the same lease revenue to the City. (There were other obligations that are not relevant to the current Ground Sublease agreement.) Space X, Zelman and HA LLC have worked out a sublease agreement over the same strip of land. The continued obligation to pay the City the lease revenue has not changed.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
The amicable relationship of major companies at the airport and the city is an important part of the city's economic development.
FISCAL IMPACT:
None
NOTICING PROCEDURE:
72 hours posted notice pursuant to Ralph M. Brown Act.