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SR-6-F (75) . ...... ., 6F AP:JPM:TAw;mh:berav~on Santa Monica, Cal~forn~a OCT f 1 1994 C~ty Counc~l Meet~ng 10/11/94 To: Mayor and C~ty Counc~l From: C~ty Staff SubJect: Recommendation To Authorlze Clty Manager To Negot~ate And Execute A Lease Wlth Berlln AVlon~cs Inc. For Hangar Space At Santa Monica Alrport. Introduction ThlS report requests the Clty Councll to authorlze the City Manager to negotlate and execute a lease with Berlln AvionlCS Inc. for hangar space at the Santa Mon~ca A~rport Speclalty Hangar BUlldlng. Backaround The Spec~alty Hangar BUlldlng has hangar space ava~lable for lease to alrcraft speclalty operators to conduct fl~ght tra~n~ng, a~rcraft malntenance and repair, aVlonlCS work and alrcraft charter and rental. The hangar space is located on the upper level of the bUlldlng wlth the lower level reserved for non-av~at~on buslnesses. The revenue from the hangar space ~s used to pay the debt serVlce on the construct~on of the bUlldlng. D1SCUSSlon Berlln AVlonlcs Inc. lntends to occupy 3,000 square feet of hangar space for a per~od of three years beglnnlng October 1, 1994. Berlln AVlonics Inc. provldes alrcraft ma~ntenanOCT f 1 ~ 6F . ~-- ~ parts and related serVlces to the aVlatlon public. The lease negotlated wlth Berlln AVlonlcs Inc. lS slmllar to prevlous leases approved by Councll for the Speclalty Hangar aviatlon spaces. The company lS sound flnancially and all reference checks were positlve. The company has been a tenant at the Alrport for over 10 years and the operation lS compatlble wlth the other aVlatlon tenants. Budgetary/Financlal Imnact The three year lease wlth Berlln AVlonlcs Inc. wlll generate a total of $43,200 In revenue for the Clty. Annual revenue ; of $14,400 is included In the 1994/95 budget and will be budgeted In subsequent years. Reconunendatlon Staff recommends that the Clty Councll authorlze City Manager to negotlate and execute a lease wlch Berlln AVlonics Inc. for hangar space ln the Specialty Hangar BUlldlng at Santa Monlca Alrport. prepared by' Timothy A. Walsh, Alrport Manager Jeffrey P. Mathleu, Dlrector, Resource Management