STRATEGIC PRIORITY: Sustainable
AGENDA DATE: June 25, 2025
COUNCIL DISTRICT(S): 6
DEPARTMENT: Department of Aviation
EXECUTIVE: Dev Rastogi
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SUBJECT
Title
Authorize the Eighth Amendment to the Lease of Land and Facilities with MLT Development Co. to (1) reduce the leased premises by approximately 16,576 square feet (0.38 acres) for the purpose of constructing a new airport vehicle access road, Estimated Revenue Foregone: Aviation Fund $263,454.07, (2) add approximately 102,315 square feet (2.35 acres) of land improved with an approximately 14,938 square-foot building to the leased premises and increase the rent accordingly - Estimated Revenue: Aviation Fund $5,786,010.53; and (3) increase the rent accordingly, and grant MLT an additional twenty four months in which to expend $5,000,000.00 for capital improvements to the leased premises - Estimated Net Revenue: Aviation Fund $5,522,556.46
Body
BACKGROUND
MLT Development Co. (“MLT”) currently leases approximately 1,275,241 square feet (29.28 acres) of land at Dallas Love Field under that certain Lease of Land and Facilities dated January 1, 1999, as amended.
As part of the Dallas Love Field ARFF Station 21 Replacement project, the City requires a portion of MLT’s existing leased premises for the construction of a vehicle access road to the new Aircraft Rescue and Fire Fighting (ARFF) station. As consideration for the take-back of the approximately 16,576 square feet of land needed to accommodate the construction of the vehicle access road, the City will extend MLT’s deadline to complete construction of new leasehold improvements at an expense of no less than $5,000,000.00 to twenty-four months from the effective date of the proposed Eighth Amendment and add approximately 117,253 square feet of land, including the existing approximately 14,938 square foot ARFF station, to the leased premises following the relocation of Dallas Fire-Rescue to the new station. Rent will be adjusted accordingly to reflect the reduction and addition of property.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 12, 1998, the City Council authorized a Lease of Land and Facilities with MLT Development Co. (“MLT”) at Dallas Love Field Airport with a thirty-year primary term and two five-year extension options for approximately 945,986 square feet (21.29 acres) of land improved with hangars, aircraft ramp areas, and automobile parking, by Resolution No. 98-2271.
On August 11, 1999, the City Council authorized the First Amendment to the lease agreement with MLT, to grant MLT an additional twelve months in which to expend $6,000,000.00 for capital improvements to the leased premises and add approximately 48,755 square feet (1.12 acres) of land to the leased premises and increase the rent accordingly, by Resolution No. 99-2286.
On February 13, 2002, the City Council authorized the Second Amendment to the lease agreement with MLT, to add approximately 61,694 square feet (1.42 acres) of land to the leased premises and increase the rent accordingly, by Resolution No. 02-0627.
On August 9, 2006, the City Council authorized the Third Amendment to the lease agreement with MLT, to add approximately 165,283 square feet (3.79) acres of land to the leased premises and increase the rent accordingly, by Resolution No. 06-2000.
On April 10, 2013, the City Council authorized the Fourth Amendment to the lease agreement with MLT to provide rent abatement as consideration for the City's temporary use of an undeveloped portion of the leased premises containing approximately 123,475 square feet (2.83 acres) as a staging area for the Love Field runway 31R/13L safety enhancement phase II project, by Resolution No. 13-0604.
On January 14, 2015, the City Council authorized the Fifth Amendment to the lease agreement with MLT to add approximately 53,523 square feet (1.23 acres) of land to the leased premises and increase the rent accordingly, by Resolution No. 15-0104.
On December 14, 2016, the City Council authorized the Sixth Amendment to the lease agreement with MLT to provide rent abatement as consideration for the City's temporary use of an undeveloped portion of the leased premises containing approximately 176,998 square feet (4.06 acres) as a staging area for the Airfield Pavement Repair Project as well as four subsequent airfield projects at Dallas Love Field, by Resolution No. 16-1905.
On March 24, 2021, the City Council authorized the Seventh Amendment to the lease with MLT 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 as consideration for the City’s temporary use of an undeveloped portion of the leased premises containing approximately 241,743 square feet (5.55 acres) and the granting of a temporary license agreement on an undeveloped portion of property adjacent to the leased premises containing approximately 769,162 square feet (17.66 acres) 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, by Resolution No. 21-0480.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $5,786,010.53
Estimated Revenue Foregone: Aviation Fund $263,454.07
Estimated Net Revenue: Aviation Fund $5,522,556.46
OWNER/EXECUTIVES
MLT Development Co.
Regal Assets, LLC, its General Partner
Timothy Bannon, Chief Operating Officer