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Santa Monica, California
NOV 1 19&B
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Council Meeting 11/01/88
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TO:
Mayor and city Council
FROM:
City staff
SUBJECT:
Recommendation to Authorize City Manager to Negotiate
and Execute a Lease with Danforth Aviation and other
Lessees for Office Space in the Clover Field Terminal
and Administration Building and Space in the
Specialty/Limited Fixed Base Operator Hangar at Santa
Monica Airport
Introduction
This report recommends that the City Council authorize the City
Manager to negotiate and execute a lease with Danforth Aviation
for approximately 10,000 square feet in the upper level of the
Special ty /Limi ted Fixed Base Operator Hangar and 2,600 square
feet in the Hangar's lower level. It also recommends that the
City Manager be authorized to negotiate and execute other leases
for space in the Clover Field Terminal and Administration
Building and the Specialty/Limited FBO hangar.
Background
The January, 1984, agree1nent between the City and the Federal
Aviation Administration required the City to redesign the Airport
into a smaller configuration while maintaining the level and
quality
of
aviation
services
then
provided.
The
Specialty/Limited Fixed Base Operator hangar was constructed to
accommodate individual operators offering one or two basic
aeronautical services such as flight training, airframe and
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'=:>-D
NOV] 1988
powerplant
repa'
aircraft
and
. . -1
av~on~cs sa es
and
service,
,
propeller repairs, pilot supplies, and related activities.
In establishing rates for the hangar, staff consulted with an
independent real estate appraiser experienced in valuing
aviation properties. In addition, lease rates for new facilities
were surveyed at other airports in California and the
southwestern United States.
Lease rates were set at $.57 per
square foot for the upper level of the hangar and $1.25 per
square foot for the lower level.
The rates reflect both
comparable rates at other, similar aviation facilities and the
type of use that is appropriate for each type of space. The
lower level is comparable to store front office space and has
both retail and office uses. The upper level is comparable to
space designed for storage and industrial/manufacturing uses.
No tenant improvement allowance is being offered for either type
of space in the hangar, although the City has agreed to reimburse
lessees for construction of the demising walls.
Danforth Aviation proposes to move its existing operations to the
new facilities including used aircraft sales and leasing, flight
training and retail pilot supplies. In addition, Danforth will
offer airframe and powerplant repair in the upper level of the
hangar. The owner of Danforth Aviation, Gary Danforth, has been
in business at the Airport for a number of years and has managed
several fixed based operations.
He has always been extremely
helpful with regards to the noise abatement program and was one
of the original members of the Airport Working Group.
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The basic terms ~the Danforth lease are oulltned below:
- The rental rate of $.57 per square foot for the upper level
includes space for four airplane tie downs: the rental rate of
$1.25 per square foot for the lower level includes three aircraft
tiedowns.
- The five year lease term will commence on December 1, 1988,
or, if no certificate of occupancy is received by that date, the
lease term will commence on the date the certificate of occupancy
on the building is issued.
- There are three five year options.
- The lease will include standard City liability clauses and
insurance requirements and Federal Aviation Administration lease
provisions and assurances.
Cloverfield Terminal
The City Council authorized the City Manager to negotiate and
execute a lease with SOlberg + Lowe Architects in March, 1988,
for approximately 5,000 square feet of office space in the new
Clover Field Terminal and Administration Building. On September
6, 1988, a lease was executed with Solberg + Lowe for 5,626
square feet, based on the terms outlined in the March staff
report.
Similar terms are being offered for the remainder of the space in
the building, as follows:
- The rental rate for the premises is $1.75 per square foot
the first year, $1.80 per square foot the second year and $1.85
per square foot the third year.
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- A three ye~1eaSe term commencing on tit date of execution
of the lease.
J
- A two year option at a rental per square foot of $1.85
adjusted upwards by the total percentage increase in the Consumer
Price Index (CPI) for All Urban Wage Earners and Consumers for
the Los Angeles-Long Beach-Anaheim, California area, for the
thirty-six month period commencing on the first day of the lease
term plus one percent (1%).
- City shall pay a $15 per square foot tenant improvement
allowance.
Lease to include standard city liability clauses and
insurance requirements.
Budgetary/Fiscal Impact
Funds for tenant improvements for the Clover Field Terminal are
budgeted in Account No. 33-710-631-000-908. Appropriate revenue
accounts will be adjusted as part of the mid year process.
Recommendation
staff respectfully recommends that the city Council authorize the
city Manager to negotiate and execute leases with Danforth
Aviation and other lessees for space in the Specialty/Limited
Fixed Base Operator Hangar and the Clover Field Terminal and
Administration Building~
Prepared by: Hank Dittmar, Airport Director
Linda sullivan, Sr. Administrative Analyst
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