DEPARTMENT: Aviation
DEPARTMENT HEAD: Jesus H. Saenz, Jr.
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease Agreement with Lewis Aeronautical, LLC at the San Antonio International Airport
SUMMARY:
This ordinance approves a five-year lease agreement with Lewis Aeronautical, LLC for 108,900 square feet of ground space and 21,902 square feet of building space at 567 Sandau Road at the San Antonio International Airport. It also terminates the current 10-year lease agreement with AHR Avionics, Inc. The new lease agreement was requested by AHR Avionics, the current tenant, who advised that they are dissolving AHR Avionics.
If approved by Council, the new lease agreement will retroactively become effective on January 1, 2020 and will expire on December 31, 2025. If the tenant makes capital improvements on the leasehold valued at $1 million before the conclusion of the fourth anniversary of the execution of the agreement, as approved by the Airport Director, then upon mutual agreement, the term may be extended for an additional five years, pending City Council approval of the extension. The lease agreement will generate approximately $96,526.24 per year and such funds will be deposited in the Airport Operating and Maintenance Fund.
BACKGROUND INFORMATION:
In October 2012, City Council authorized a 10-year lease agreement with AHR Avionics pursuant to Ordinance 2012-10-18-0819 for 108,900 square feet of ground space and 21,902 square feet of building space at 567 Sandau Road. The tenant has been operating at this location since 1992 as an aircraft services company which provides general aviation aircraft avionics and maintenance, repair and overhaul services.
During the past year, AHR notified Aviation Department staff that it was dissolving and that the principals of AHS would like to negotiate a new lease agreement under Lewis Aeronautical, LLC. Lewis Aeronautical will use the leasehold solely for aircraft and/or aircraft parts and equipment sales...
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