Title
Approve the purchase of an 8,000-square-foot facility located at 1290 Airport Boulevard, Mesquite, Texas (the "Property"), from LBL - Birdhouse 3, LLC, (the "Seller") for the purchase price of $470,000.00, plus closing costs and authorize the City Manager to finalize and execute a Termination of Ground Lease agreement between the Seller and the City for the purchase of the property, and all other documents and take all other actions necessary or requested to finalize the closing and purchase of the property.
Body
In 2003, the City of Mesquite entered into a ground lease agreement with Norman Preskitt and Stephen Silver for the construction of a 6,000-square-foot hangar with 2,000 square feet of office space attached to the facility located at the Mesquite Metro Airport (Airport). The ground lease allowed ownership of the property for a term of 50 years ending in February 2053. At the termination of the ground lease, the City would then own all improvements made to the property.
In January of 2019, the facility was sold to LBL - The Birdhouse 3, LLC, which took over the responsibilities of the ground lease with the consent of the City Council.
As was briefed to the City Council, City staff believes the current demand for hangar space the Airport will quickly fill this facility with high value jet aircraft. This facility is located directly next to the Airport terminal and will allow for Airport staff to consolidate their operations by bringing equipment closer to the terminal and allow for additional space for transient aircraft to safely hangar overnight.
Financial Implications
Funding is available in the Airport Fund. The Airport Fund will contribute $270,000.00 this fiscal year and $200,000.00 will come from the Capital Projects Fund to be reimbursed by the Airport Fund over the next four years in equal payments of $50,000.00.
Recommended/Desired Action
Authorize the City Manager to negotiate and execute contracts and closing documents to purchase t...
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