STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: March 24, 2021
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize the Seventh Amendment to the 1999 lease agreement with MLT Development Co. to extend the primary term of the lease by thirty-one years, require a new capital improvement investment of no less than $5,000,000.00 on the construction of new leasehold improvements within 36 months, and provide rent abatement in consideration for the City's use of an undeveloped portion of the leased premises and the granting of a temporary working space easement on an undeveloped portion of property adjacent to the leasehold that is owned by MLT Development Co. for use as a staging and batch plant area for Dallas Love Field Airport's runway reconstruction project and subsequent airfield projects - Estimated Net Revenue: $53,834,264.60
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BACKGROUND
MLT Development Co. ("MLT") currently leases approximately 1,275,241 square feet of land at Dallas Love Field under that certain Lease of Land and Facilities dated January 1, 1999. The lease has a thirty-year primary term plus two five-year extension options.
As part of the Love Field Runway Reconstruction Project necessary to address pavement issues and bring the runway to current Federal Aviation Administration (FAA) requirements, the City requires use of an undeveloped portion of the MLT leased premises and an undeveloped portion of property adjacent to the leased premises that is owned by MLT to accommodate the staging area for the project for a period of five years with two additional one-year options. MLT will grant the City a temporary working space easement on the adjacent land and allow the City access to and use of the leased premises for the described purposes. The land will also be used as a staging yard to store the required construction...
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