Staff recommends that the City Council Adopt Resolution No. 8604, Consenting to the Assignment of the Through-The-Fence Agreement and Concession Agreement for Aviation Fueling Operations From 3507 JNA LLC to 3507 Jack Northrop Owner LLC from the sale of the Property located at 3507 Jack Northrop Avenue, Hawthorne, CA 90250, and authorize the City Manager to execute all related documents.

Hawthorne Hangar Operations, L.P. ("HHO") filed for bankruptcy protection in March 2023 (case no. 2:23-bk-11789-BR). HHO owned a hangar facility at the airport. On August 30, 2023 the bankruptcy court approved the sale of the bankruptcy estate's ("Estate") rights, title, and interest in and to the HHO hangar facility, including the fuel farm and its rights to the Through-the-Fence ("TTF") and the Concession Agreement for Aviation Fueling Operations ("Fueling Agreement") (collectively, the “Property") to 3507 JNA LLC for the total sum of $13,350,000. 

On September 15, 2023 the City of Hawthorne consented to the Assignment of the Through-The-Fence Agreement and Concession Agreement for Aviation Fueling Operations to 3507 JNA LLC for the property located at 3507 Jack Northrop Avenue, Hawthorne, CA 90250. 

3507 Jack Northrop Owner, LLC is purchasing the Property from 3507 JNA LLC. 3507 Jack Northrop Owner, LLC is requesting consent to the Assignment of the Through-The-Fence Agreement and Concession Agreement for Aviation Fueling Operations From 3507 JNA LLC to 3507 Jack Northrop Owner LLC from the sale of the Property located at 3507 Jack Northrop Avenue, Hawthorne, CA 90250.    

The City entered into the TTF Agreement with HHO in 2009. The hangar is located at 3507 Jack Northrop Ave. and sits outside the airport fence. The TTF Agreement allows the airplanes in the hangar a direct access to the airport grounds with the lease of a tarmac area immediately in front of the hangar. The agreement required HHO to pay the City $18,000 annually for the lease of the tarmac. 

The Fueling Agreement was executed in 2017. The agreement allowed HHO to sell fuel at the airport until February 2032. Under the Fueling Agreement, HHO was to pay the City the greater of fourteen cents per gallon or the fee per gallon for fuel sold by other authorized tenants at the airport. The only other authorized tenant to sell fuel at the airport is Archer Aviation, Inc., the holder of the airport's Master Ground Lease.

Both the TTF and the Fuel Agreement require the assignment of 3507 JNA LLC's rights under the agreements to be approved by the City. However, the City cannot unreasonably withhold its consent since the new owners are well qualified to run a hangar operations business.

A new business in the City.
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 businesses 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.

None. 

72 Hours posted notice pursuant to the Ralph M. Brown Act.