TITLE
Consider a memorandum/resolution approving termination of lease agreement with Jacob Paxton d/b/a Paxton Aviation at Skylark Field.
SUMMARY
DATE: June 20, 2017
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: JACOB PAXTON LEASE TERMINATION (SKYLARK FIELD)
BACKGROUND AND FINDINGS:
On January 26, 2016, Council approved a lease agreement with Jacob Paxton d/b/a Paxton Aviation for the lease of a 6,400 sq. ft. hangar on Skylark Field. The lease included authorizing the tenant to engage in the business activities of a Fixed Base Operator, providing aircraft maintenance, flight training, aircraft rental, charter operations, sale of pilot supplies, and related aeronautical business activities.
On May 15, 2017, staff received a written request from Mr. Paxton requesting release from the lease agreement citing inability to pay for continued rental of the building. The request did indicate that he would honor and pay the past due balance of rents and fees owed through May, 2017, but as of the date of this staff report approximately $8,600 in rent and late fees remain due.
This tenant has a history of late payments and insufficient fund check payments to the City. On January 24, 2017, a certified letter of demand was sent to the tenant demanding payment of past due rents and fees. On March 16, 2017, a lock-out was placed on the hangar for non-payment of rent. Upon receipt of a satisfactory repayment plan and initial payments on the plan, the lock out was suspended; however when payments lagged behind the repayment plan, the lock-out was re-instated on April 4, 2017. With the receipt of a relatively large payment on April 5, 2017, the lock-out was again suspended. The payments per the agreed repayment plan continued through May 15, 2017; however, no subsequent payments have been received as of June 5, 2017.
Staff has determin...
Click here for full text