DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Amendment to the Lease Agreement with Sierra Victor, Inc. at San Antonio International Airport
SUMMARY:
This Ordinance will authorize an amendment to the lease agreement with Sierra Victor, Inc. (Sierra Victor) at the San Antonio International Airport to extend the term for an additional 10-year period with the option to extend an additional three one-year periods. The extension of the term is contingent on Sierra Victor completing the work described below. The amendment also provides with a guarantee that the city will not require Sierra Victor to relocate if necessary for seven years from the date of execution of the amendment. This agreement will also increase the leased premises in the amount of 5,503 square footage of ground space for a surface parking area and a covered carport structure at the rental rate of $0.42 per square foot and will be adjusted periodically.
BACKGROUND INFORMATION:
Sierra Victor, Inc. has provided storage and the maintenance of corporate aircraft since October of 1996 through Ordinance 84988. The lease agreement was for a term of 10 years with the option to extend for a five-year period. In 2006, the agreement was extended for another five-year period through Ordinance 2006-09-07-1034. In November 2015, City Council authorized an amendment to the agreement for an additional three years with two, one-year extension in exchange of Sierra Victor's demolishing two hangars (Buildings 1400 and 1401) and constructing a security fence that meets the Transportation Aviation Security (TSA) regulations under Ordinance 2015-11-12-0944. This work was completed by Sierra Victor.
Sierra Victor would like to extend their lease agreement; build a covered carport on additional ground space; and, have an agreed-upon period where the firm could not be relocated. The City would like to have additional buildings on the leased premises dem...
Click here for full text