CC - Agendas - City Council - REGULAR - 11/28/2017

Home

I 8.1 ('IT Vol,PREScoTT COUNCIL AGENDA MEMO MEETING DATE/TYPE: VOTING MEETING 11-28-17 DEPARTMENT: Airport AGENDA ITEM: (1) Approval of Consent to Assignment of Airport Lease Agreement for Airport Lease (City Contract No. 1990-029C) from Ritt-Aire LLC to JDS Family Limited Partnership; and (2) Approval of Amendment (City Contract No. 1990-029CA1) to add a fifteen year extension to the Lease Agreement. Approved By: Michael Lamar, City Manager Item Summary These related airport items are for: (1) consenting to the assignment of an existing Lease between the City and Ritt-Aire LLC to JDS Family Limited Partnership; and, (2) after consenting to the assignment of the Lease to JDS Family Limited Partnership, to amend the term of the Lease by twenty five years. Background The "Ritt-Aire Complex", located on the corner of Wilkinson and Melville Road, was constructed in 1990. The original lease was between the City and Arizona Flight School Inc. The first amendment to the lease (City Contract No. 1990-029A) changed the term to twenty five years with one twenty five year extension. There was also a slight adjustment to the square footage that was leased. The lease also was sold and assigned to Arizona Pacific Aviation. The second amendment to the lease (City Contract No. 1990-029AS) was an agreement for accord and satisfaction, as the lessee did not construct the office space that was originally agreed upon within the lease. City Council also approved, on July 30, 1996, the construction of a 10,000 gallon fuel tank to be constructed on the property. The third amendment (City Contract No. 1990-029A1) was the lease transfer from Arizona Pacific Aviation to RittAire, LLC on July 22, 1997. The fourth amendment increased the lease size to 7 acres and adjusted the lease payment. This was approved by council on May 11, 1999. I Packet Pg. 125 I