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File #: 14-2682   
Type: Real Property Lease
In control: City Council A Session
On agenda: 11/13/2014
Posting Language: An Ordinance authorizing an amendment to the lease agreement with M7 Aerospace to recapture a building and 36,316 square feet of ground space at San Antonio International Airport. [Ed Belmares, Assistant City Manager; Frank Miller, Director, Aviation]
Indexes: Aviation Lease Agreements
Attachments: 1. Exhibit Highlighting AICC, 2. Proposed Lease Exhibit for M7, 3. M7 DCD, 4. Draft Ordinance, 5. Ordinance 2014-11-13-0905
DEPARTMENT: Aviation


DEPARTMENT HEAD: Frank Miller


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Amendment to Lease Agreement with M7 Aerospace at San Antonio International Airport


SUMMARY:

This Ordinance authorizes an amendment to the lease agreement with M7 Aerospace to recapture Building 1804 and 36,316 square feet of ground space at San Antonio International Airport. The City of San Antonio will use the building and ground space for the Airport Integrated Control Center.


BACKGROUND INFORMATION:

In 2010, City Council authorized a lease agreement with M7 Aerospace under Ordinance 2010-11-18-0980. The leasehold includes 12 buildings and 25.53 acres.

M7 approached the Aviation Department about reducing their leasehold and asked about any firms that may be interested in leasing part of their leasehold. At the same time, the City of San Antonio initiated the development of an Airport Integrated Control Center (AICC). The mission of the AICC is to modernize airport operations, streamline incoming and outgoing information for all stakeholders in real-time and unify essential operational business processes of the airport. The program will include changes to airport processes and procedures. It also requires a centralized location for these purposes.

M7 and the Aviation Department identified Building 12/1840 for the recapture. The building is comprised of 20,008 square feet. In addition, there is 36,316 square feet of ground space available for parking and equipment storage.

With the recapture, the leasehold for M7 will be reduced to 901,530 square feet of ground space and 437,940 square feet of building spaces.




ISSUE:

City Council authorization is required for lease agreements and amendments.


ALTERNATIVES:

City Council could elect to not authorize the amendment to the lease agreement. However, the proposed amendment will allow the City to utilize an existing building for the AICC without building ...

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