DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Assignment and Assumption of a Lease Agreement at the San Antonio International Airport
SUMMARY:
This ordinance consents to the assignment and assumption agreement of the lease agreement from Zachry Industrial, Inc. to Atherton Properties, Inc. dba HH Aviation. Zachry Industrial has built and relocated to a new hangar. HH Aviation would like to assume the leasehold of 15,400 square feet of hangar space and 60,644 square feet of ground space at 10226 John Cape Rd. The company agrees to assume the rights and obligations under the current lease agreement with Zachry Industrial, Inc.
BACKGROUND INFORMATION:
Zachry constructed the hangar facilities it currently occupies at SAT in 1969. The hangar reverted to City ownership in 1994. The facility is located at the intersection of Paul Wilkens and John Cape Road and includes 15,400 square feet of hangar space and 60,644 square feet of ground space. The ten-year lease agreement associated with the property was authorized by City Council in November 2009 and is set to expire on November 31, 2019.
HH Aviation would like to assume this lease agreement as Zachry is moving to its new hangar complex on the northwest side of the airfield. The new hangar complex is under a separate lease agreement with Zachry and not affected by the assumption and assignment of this lease agreement.
The Aviation Department has reviewed the request and is supportive of the action.
ISSUE:
The assignment and assumption of lease agreements require the approval of City Council.
ALTERNATIVES:
City Council can choose not to consent to the assignment of the lease agreement. However, this would be inconsistent with the City policy to consent to the assignment of lease agreements when the current lessee is in good standing and the prospective tenant is qualified.
FISCAL IMPACT:
The assign...
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