Title
Authorize the City Manager to finalize and execute a Consent to Assignment of Ground Lease with DAG KHQZ Airport LLC.
Body
On February 19, 2018, the City of Mesquite entered a ground lease with LBL - Birdhouse Too, LLC, for the construction of a 9,600-square-foot hangar located at 1438 Airport Boulevard. The term of the ground lease is 25 years. In accordance with the assignment provisions of the ground lease, DAG KHQZ Airport LLC. has negotiated terms to purchase the hangar from LBL - Birdhouse Too, LLC, under the same terms and conditions as the original ground lease.
According to the Dallas Central Appraisal District, the hangar located at 1438 Airport Boulevard in 2024 had a taxable value of $600,000.00. DAG KHQZ Airport LLC intends to purchase a jet aircraft for its business, which will be stored in this facility. All of which will be subject to taxes.
The City Attorney’s office has reviewed the Consent to Assignment.
Recommended/Desired Action
Staff recommends the City Manager be authorized to finalize and execute a Consent to Assignment of Ground Lease with DAG KHQZ Airport LLC.
Drafter
Eric Pratt, A.A.E.
Head of Department
Eric Pratt, A.A.E.