TITLE
Consider a memorandum/resolution approving the Genesis Flight Academy, L.L.C. lease agreement extension at Skylark Field.
SUMMARY
AGENDA ITEM
Skylark Field Genesis Flight Academy, L.L.C. Lease Extension
ORIGINATING DEPARTMENT
Aviation
BACKGROUND INFORMATION
Council approved a lease agreement with Genesis Flight Academy L.L.C. on September 29, 2011, for use of hangar facilities at 1505 Stonetree Drive on Skylark Field. Genesis is authorized by the agreement to operate a Fixed Base Operator business which includes the activities of aircraft maintenance, flight training, aircraft rental, specialized flying services, and the sale of aviation charts, books, and various supplies. On September 9, 2014, Council approved Addendum #1 to the lease agreement extending the term through September 30, 2016.
DISCUSSION/CONCLUSION
Staff has negotiated an addendum with the tenant that will extend the term by one additional year at a monthly rate of $854.27. This rate includes an increase that corresponds with the Consumer Price Index (CPI) rate of increase over the last two years.
FISCAL IMPACT
This lease agreement will provide for approximately $10,251 in annual revenues to be deposited in the Skylark Field Airport Enterprise fund account number 527-0000-324.10-00 FIXED BASE OPERATIONS.
RECOMMENDATION
City Council approve Addendum No. 2 to the Genesis Flight Academy, L.L.C. lease agreement, extending the lease for a duration of one year from October 1, 2016, through September 30, 2017, and authorize the City Manager to execute same.