COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Kelly Garry, City Attorney
SUBJECT:Title
Discussion and Possible Action, if Necessary, to Comply with Arizona Open Meeting Law following the Executive Session Regarding:
Amendments to Airport Fixed Based Operator Leases, Consent to Assignment of Leases, and Estoppel Certificates Regarding the Transfer of Airport Sites 3 and 4 Fixed Based Operator Leases from Desert Skies Executive Air Terminal, LLC, to Havasu Air Center, LLC (Kelly Garry)
Body
FUNDING SOURCE:
N/A
PURPOSE:
To consider the Lessor Consent to Assignment and Assumption of Leases and Estoppel Certificates to allow the transfer of Airport Sites 3 and 4 Fixed Based Operator Leases from Desert Skies Executive Air Terminal, LLC, to Havasu Air Center, LLC.
BACKGROUND:
Lake Havasu City received a request to consent to the transfer of the Fixed Base Operator (FBO) Leases for Sites 3 and 4 at the Lake Havasu City Municipal Airport from Desert Skies Executive Air Terminal (Desert Skies) to Havasu Air Center (HAC).
The Site 3 FBO Lease was originally executed in 1992 and assigned to Desert Skies in 2007. It expires on September 30, 2027. Site 3 includes a restaurant, hangars, and office space as shown on the attached map.
The Site 4 FBO Lease was originally executed in 2008 and assigned to Desert Skies in 2014. Site 4 includes hangars, office space, and a pool.
Certain amendments to the FBO Leases for Sites 3 and 4 are requested at this time and prior to any assignment. The Amendments include provisions regarding liens and mortgages and Federal Aviation Administration (FAA) grant assurances. Attached are Amendments to the FBO Leases for Sites 3 and 4.
Desert Skies and HAC request the City’s consent to the assignment of Sites 3 and 4 from Desert Skies to HAC. Attached are Consents to Assignment and Assumption of Lease for Sites 3 and 4. If approved, this action would transfer the Sites 3 and 4 FBO Leases from Desert Skies to HAC for the remainder of lease terms.
Desert Skies and HAC also request the City to execute Estoppel Certificates for Sites 3 and 4. Estoppel certificates serve to confirm the accuracy of lease terms between a tenant and landlord for a third party, such as a potential buyer or lender. Attached are Estoppel Certificates for Sites 3 and 4.
COMMUNITY IMPACT:
N/A
FISCAL IMPACT:
N/A
ATTACHMENTS:
Map of Airport
Second Amendment to Fixed Based Operator Lease Site 3
Consent to Assignment of Lease Site 3
Estoppel Certificate Site 3
First Amendment to Fixed Based Operator Lease Site 4
Consent to Assignment of Lease Site 4
Estoppel Certificate Site 4
SUGGESTED MOTION:Recommended Action
I move to approve the Second Amendment to the Fixed Based Operator Lease for Site 3 and the First Amendment to the Fixed Based Operator Lease for Site 4 and the Consent to Assignment of Leases and Estoppel Certificates for Airport Sites 3 and 4.