STRATEGIC PRIORITY: Economic Development
AGENDA DATE: April 12, 2023
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize the First Amendment to the Consolidated Lease of Land and Facilities with TWG Aviation, Ltd. ("TWG"), to (i) reduce the leased premises by approximately 500 square feet to accommodate the relocation of electrical equipment servicing Denton Drive, (ii) authorize monthly rent credits to TWG in a total amount not to exceed $459,670.49 for the cost of relocating the electrical equipment, and (iii) to extend the time for completing new capital improvements by fifteen months - Estimated Revenue Foregone: Aviation Fund $1,087,169.44 (over the approximately thirty-two years remaining in the primary term of the lease) (see Fiscal Information)
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BACKGROUND
On December 9, 2020, the City Council authorized a new thirty-four year and five-month Consolidated Lease of Land and Facilities (the "Lease") with TWG Aviation, Ltd. ("TWG"), for approximately 619,065 square feet (14.21 acres) of land with existing facilities at Dallas Love Field (the "Airport") comprised of three contiguous tracts. As a key term of the Lease, TWG is required to expend no less than $6,000,000.00 in the construction of a new aircraft hangar with office space, vehicular parking, and aircraft ramp area on the undeveloped Tract 3, which contains approximately 346,498 square feet (7.95 acres) of land, by December 21, 2023 as part of its Phase I improvements. The City also agreed to abate rent payments for Tract 3 during the thirty-six-month construction period.
During the design phase of the Phase I improvements, TWG discovered electrical equipment owned by Oncor Electric on the Tract 3 premises. This equipment services Denton Dr. and does not have any connections to TWG's leased premises. The City and TWG have been working with Oncor to relocate...
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