O-2002-2545 - Laserfiche WebLink

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REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: S. Gillett March 18.2002 ~ Appropriation Agenda Date Requested: Source of Funds: N/A Department: Public Works Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: N/ A Exhibits: Ordinance Amount Requested: N/A Exhibits: First Amendment to Agreement and Lease Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City of La Porte has an Agreement and Lease for Fixed Base Operations with Tri-Star Aviation, Inc. (formerly Bayport Aviation) effective from January 1, 1985 to December 31, 2014. The lease is for 11.12 acres and thirty (30) paved tie-downs. Tri-Star Aviation has proposed to lease a total of fifty (50) tie-downs and immediately construct two (2) T-hangers on Sites 1 and 2 as shown on Exhibit "A" of the proposed First Amendment to Agreement and Lease. Exhibit "8" is the proposed construction schedule for the two (2) T-hangers. Article IX, 1, C. of the original lease contains provisions for termination of the amendment "If the Lessee shall fail to perform, keep and observe all the covenants and conditions contained in this Agreement and Lease to be performed, kept and observed by it". The proposed lease rate for the two- (2) T-hanger sites is $580.69 per year. The lease rate is subject annually to the Consumer Price Index for all Urban Consumers, with 2001 as the base year. Rental of these sites will commence on September 1,2002 or upon issuance ofa certificate of Occupancy by the City, whichever occurs first. The lease rate for the fifty- (50) tie-downs will be 30% of gross revenue or $144.00 per year per tie-down; whichever is greater, for a total annual rental rate of$7,200.00. The cost of living provision will not apply to the tie-down area. Finally, the proposed amendment will extend the lease period for additional twenty- (20) years, expiring on March 31,2022. Tri-Star Aviation has tendered $500.00 for the lease preparation fee. Rental will be billed monthly, and will begin as outlined in the Agreement. Action Required bv Council: Approve an ordinance authorizing the City Manager to execute the First Amendment to Agreement and Lease between the City of La Porte and Tri-Star Aviation, Inc. Approved for City Council Agenda G\~T, ~ Robert T. Herrera, City Manager 3. t<....o"L Date