Subject: New Lease of Airport Premises, Airport Group International
COUNCIL DISTRICT: City-Wide
Approval of new Lease of Airport Premises between the City of San José and Airport Group International, for the period January 1, 2003 to December 31, 2008, with annual revenue to the City of $10,476.
BACKGROUND
Airport Group International (AGI) has been leasing space from the City in support of its operations since July 1, 1998. AGI’s operations include the provision of ground handling and equipment maintenance services to several airlines at the Airport. AGI’s leased space at the Airport was previously covered in separate agreements with the City for its various operations at the Airport.
The proposed Lease will combine all of AGI’s leased space at the Airport into one agreement.
The proposed Lease is for 1,590 square feet of hangar floor space at 1277 Airport Blvd in support of AGI’s airline ground support equipment repair operation. In addition, the proposed lease includes 474 square feet of Hangar Office space at 1277 Airport Boulevard. The proposed Lease authorizes the Director of Aviation to execute any future amendments to the lease that increase, decrease or relocate the leased premises, provided that the rental rates for any such premises remain unchanged from the rental rates authorized by Council in this proposed first amendment. Either party may terminate the Lease without cause at any time with not less than thirty days written notice. Municipal Code Section 25.08.1340 requires that any lease of Airport property in excess of three years be approved by the City Council.
Not applicable.
This item has been coordinated with the City Attorney’s Office and Risk Management.
COST IMPLICATIONS
The approval of this proposed lease agreement would help the City support the aviation needs of Silicon Valley, provide revenue to the Airport, and thus be consistent with the general principals of the February 4, 2003 budget strategy memo approved by Council.
Resolution No. 67380
PP#: 03-02-039
Ralph G. Tonseth
Director of Aviation
Airport Department