Prescott
AZ

Council Memo
2664

Approval of Lease Amendment 1993-067A2 with Guidance Helicopters, Inc., which revises terms contained within the original lease sections pertaining to lease payment, lease adjustments, and duration.

Information

Department:AirportSponsors:
Category:Amendment

Attachments

  1. Printout
  2. City Contract 1993-067A2 (This file has not yet been converted to a viewable format)

Document Comments

Recommended Action: MOVE to approve Lease Amendment 1993-067A2 with Guidance Helicopters, Inc., which revises terms contained within the original lease sections pertaining to lease payment, lease adjustments, and duration.

Body

Item Summary

 

This Council item approves an amendment (A2) to the City Facilities Commercial Premises lease on City Contract 1993-067 with Guidance Helicopters Inc. This amendment allows restoration of a lease option, coupled with future adjustments to the lease rate and a City option for early lease termination for future airport development.

 

Background

 

On May 31, 2000; City Contract 1993-067 Commercial Premises lease was assigned to Guidance Helicopters Inc. The original lease agreement was for a twenty-five (25) year term with two five-year options to extend the term, with the initial term expiring on November 30, 2018.  Due to lack of timely notification for the renewal option, the lease reverted to a month-to-month holdover tenancy.

 

This contract amendment allows the lessee to restore the renewal options contained within the original lease terms, with the following revisions:

 

1)     Establish an initial lease payment amount, which includes a Consumer Price Index payment adjustment.

2)     Revise the terms of the duration of the lease agreement authorizing the first renewal option (December 01, 2018 - November 30, 2023) contained in the original lease, and allows a second five-year option to renew. 

3)     Allow for early termination of the lease (with six-month notice) during the second five-year renewal option term, as need for airport/terminal expansion without penalty or liability to the City for early termination.

4)     Revise future lease payments to fair market value in a graduated fashion, should the Lessee exercise the second five-year option.

 

Financial Impact

 

In addition to the annual lease payment adjustments, approval of this lease amendment will increase Airport revenues in years 8-10 of the agreement, should lessee exercise the renewal option within this amendment.

 

Meeting History

Sep 10, 2019 3:00 PM  City Council Voting Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:Alexa Scholl, Councilwoman
SECONDER:Steve Sischka, Councilman
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Jim Lamerson, Alexa Scholl, Steve Sischka