File #: 23-6489    Version: 1 Name: Ground Lease Extension Hangar D4
Type: Agenda Item Status: Passed
File created: 3/6/2023 In control: City Council
On agenda: 3/20/2023 Final action: 3/20/2023
Title: Authorize the City Manager to finalize and execute a ground lease renewal with Classic Flight, L.P., for a 10-year extension for Aircraft Hangar D4, located at 910 Airport Boulevard, Mesquite, Texas.

Title

Authorize the City Manager to finalize and execute a ground lease renewal with Classic Flight, L.P., for a 10-year extension for Aircraft Hangar D4, located at 910 Airport Boulevard, Mesquite, Texas.

 

Body

Classic Flight, L.P. purchased Hangar D4 in December 1998 from the developer who built these facilities on a ground lease beginning March 1993. The existing ground lease has an initial term of 30 years that expired on February 28, 2023.  The ground lease allows for two 10-year extensions at the request of Classic Flight, L.P.  The ground lease provides for a rate increase based upon the Dallas Consumer Price Index, every five years. At the end of the lease term, the hangar will revert to City ownership.

 

Recommended/Desired Action

Staff recommends the City Manager be authorized to finalize and execute a ground lease renewal with Classic Flight, L.P.

 

Drafter

Eric Pratt C.M.

 

Head of Department

Eric Pratt C.M.