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 Second Amendment to the 1993 Ground Lease with MLT Development Co. to add approximately 61,149 square feet of land and improvements currently leased by MLT Development Co. on a month-to-month basis and add an additional thirty-four years to the primary term of the lease in consideration for the City's right of first offer to purchase any portion or all of approximately 175,569 square feet privately-owned land with improvements adjacent to the leasehold - Estimated Revenue: Aviation Fund $11,462,796.50 during the primary term of the lease
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BACKGROUND
MLT Development Co. ("MLT") currently leases approximately 124,122 square feet of land at Dallas Love Field under that certain Ground Lease dated December 22, 1993 (the "EDS Lease"). The EDS Lease has a thirty-year primary term which commenced on May 13, 1995, with two five-year options to extend the lease.
MLT also leases approximately 61,149 square feet (1.40 acres) of land with an existing fuel farm facility under that certain Lease of Land and Facilities at Dallas Love Field dated February 20, 1980 (the "Shorecrest Lease), which has been held-over as a month-to-month lease since its expiration on January 31, 2021.
The City now desires to terminate the month-to-month Shorecrest Lease and consolidate the leased premises into the existing EDS Lease. Upon execution of the proposed Second Amendment, rent on the additional 61,149 square feet of land and improvements shall be increased to the Airport's prevailing rental rates for similar premises. Furthermore, rental rates for the additional land and improvements shall escalate every three years in accordance with the existing terms of the EDS Lease. The City also desires to ...
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