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 Lease and Use Agreement of Land and Facilities between the City of Dallas and Commemorative Air Force, Inc. ("CAF") at Dallas Executive Airport to: (1) allow CAF's subtenants to fulfill existing benchmarks for various rent abatement opportunities; (2) allow CAF's subtenants to fulfill the existing capital investment obligation and increase the total required capital investment by an additional $2,000,000.00; and (3) modify the leasehold mortgage provision to the lease; and (4) increase the reimbursement amount to CAF for the cost of constructing the new aircraft ramp - Not exceed $70,000.00, from $1,260,580.00 to $1,330,580.00 - Financing: No cost consideration to the City Aviation Fund
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BACKGROUND
On December 10, 2014, City Council authorized the City Manager to enter into a thirty-nine-year lease agreement with Commemorative Air Force, Inc., a Texas 501c(3) nonprofit corporation, for approximately forty-five acres of improved and unimproved land, aircraft hangar, ramp, and automobile parking by Resolution No. 14-2184.
On August 26, 2020, City Council authorized the first amendment to the lease agreement to shift the City's lease obligation to construct 90,000 square feet of additional ramp space on the leased premises to CAF and reimburse CAF for construction costs in an amount not to exceed $1,260,580.00 upon substantial completion of the ramp. CAF has completed the construction of the ramp, but the final construction cost exceeded the initial estimate by $70,000.00. The proposed amendment will increase the previously approved reimbursement amount by an additional $70,000.00 to cover the total final construction cost for the ramp area.
On Dec...
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