DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with WesternSATLeasing, Inc. at the San Antonio International Airport
SUMMARY:
Consideration of two Ordinances related to a lease agreement for property at 10440 John Cape Road at the San Antonio International Airport (SAT):
A. This Ordinance authorizes a lease agreement with WesternSATLeasing Inc. (Western) at SAT for an initial term of 25 years for a total of 386,562 square feet (approximately 8.87 acres) located at 10440 John Cape Road. The property will be divided into two parcels and developed separately. The initial annual rental rate for both parcels will total $96,640.00 during the construction period of the site development. Once construction on the property is complete, the annual rental rates shall adjust to $154,624.80 for both. The terms for both parcels may be extended for an additional five years if capital investments levels are met.
B. This Ordinance declares two hangars and one building as surplus and authorizes the demolition of all three buildings.
BACKGROUND INFORMATION:
In 2013 Hawker Beechcraft closed its aircraft maintenance facility at SAT as part of a nationwide downsizing effort. The City issued two Request for Interest (RFI) solicitations for the property and, while there was interest, a deal never materialized. In 2017, the City was approached by Western with a proposal to redevelop the property located at 10440 John Cape Road and sublease to other tenants. This proposal will provide a new tenant for a space that has been vacant since 2013 and will generate additional non-airline revenue. In addition, as part of the lease agreement Western will demolish three current structures (Hangar 4, Hangar 6 and Building 5) on the property at their own expense and build new facilities, which will revert back to the City once the term of the lease is complete.
The City and Western agree that the leased premise...
Click here for full text