DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Subordination Agreements for the San Antonio Airport System
SUMMARY:
Consideration of two Ordinances related to Subordination Agreements for the San Antonio Airport System:
A. This Ordinance approves the Deed of Trust Agreement between HH Aviation, LLC and Bank SNB. The lease agreement of HH Aviation allows the firm to use its leasehold interest at the San Antonio International Airport as a security for a loan agreement to finance their interest in the hangar, furniture, fixtures, equipment and fuel storage tanks located at the leasehold at 10226 John Cape Rd.
B. This Ordinance authorizes the Aviation Director and Chief Financial Officer or their designees to execute Subordination Agreement that will allow a tenant of the San Antonio Airport System to use their leasehold interest as a security for a loan agreement.
BACKGROUND INFORMATION:
HH Aviation is the corporate aviation division of HOLT CAT that operates out of the Holt Hangar at San Antonio International Airport. Holt is a San Antonio-based company and the largest Caterpillar heavy equipment and engine dealership in the United States with locations throughout Texas. HH Aviation has operated at San Antonio International Airport for almost 30 years. The tenant would like to use its leasehold interest as a security for a loan agreement with Bank SNB to finance their interest in the hangar, furniture, fixtures, equipment and fuel storage tanks located at 10226 John Cape Rd., San Antonio International Airport. While tenants have used personal property such as equipment and aircraft as collateral, they may request approval to use their leasehold interest.
Item A
Their most current lease agreement was approved by City Council in June 2011 through Ordinance 2011-06-09-0476 and included language that referenced that "any pledge or collateral assignment of Lessee's interest [HH Aviation] in the L...
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