2002-02-11 Regular Meeting - Laserfiche WebLink

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: February 11, 2002 Requested By: S. Gillett Department: Public Works Report: Resolution: Ordinance: XX Exhibits: Ordinance Exhibits: First Amendment to Agreement and Lease Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City of La Porte renewed the Agreement and Lease for Fixed Base Operations with D. E. Aviation, Inc. on January 26, 1998. The Agreement is for two (2) acres and twenty-four (24) tie-downs for a twenty (20) year period, with two (2) five-year options. D. E. Aviation has proposed to lease three T-hanger sites and immediately construct two (2) ten-unit T-hangers and one (1) four-unit hanger on sites 1,2 and 3 as shown on Exhibit "A" of the proposed First Amendment to Agreement and Lease. Exhibit "C" is the proposed construction schedule for the three (3) 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". Additionally, D. E. Aviation proposes to option T-hanger site 4 until December 31, 2004, with a first right of refusal within 30 days of the City receiving an offer to lease T-hanger site 4. Finally, D. E. Aviation proposes to lease, on a year-to-year basis, thirty four (34) tie-downs shown on Exhibit "B", with the City reserving the right to lease the thirty four (34) to a future lessee of the fixed-base operator site identified on Exhibit "B". The proposed lease rate for the three-(3) T-hanger sites is $1,645.00 per year per site, or $4,935.00 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 August 1, 2002 or upon issuance of a certificate of Occupancy by the City, whichever occurs first. The proposed option is subject to a $500 option fee, with the rental rate per year the same as the individual rental rate for the first three T-hangers. Finally, the lease rate for the thirty-four (34) tie-downs will be 30% of gross revenue or $144.00 per year per tie-down, whichever is greater. The cost of living provision will not apply to the tie-down area. D. E. Aviation has tendered $500.00 for the lease preparation fee, and $500.00 for the option fee. Rental will be billed monthly, and will begin as outlined in the Agreement. Action Required by Council: Approve an ordinance authorizing the City Manager to execute the First Amendment to Agreement and Lease between the City of La Porte and D. E. Aviation, Inc. Approved for City Council Agenda Robert T. Herrera, City Manager a,-~ - 01- Date