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AP:JPM:TAW:mh:smprop Santa Monlca, Callfornla
Clty Councll Meetlng 10/11/94 OCT 1 11994
To: Mayor and Clty Council
From: City Staff
SubJect: Recornmendatlon To Authorlze Clty Manager To
Negotlate And Execute A lease Wlth Santa
Monlca Propeller For Hangar And Offlce Space At
Santa Monica Alrport.
Introductlon
This report requests the City Councll to authorlze the Clty
Manager to negotlate and execute a lease wlth Santa Mon1ca
Propeller for hangar and offlce space at the Santa Monica
A1rport Speclalty Hangar BUlldlng.
Backaround
The Speclalty Hangar BUlldlng has hangar space avallable for
lease to alrcraft speclalty operators to conduct flight
tralnlng, alrcraft ~aintenance and repalr, aVlonlCS work and
aircraft charter and rental The hangar space lS located on
the upper level of the bUlldlng with the lower level reserved
for non-avlatlon businesses. The revenue from the hangar
space 1S used to pay the debt serVlce on the construction of
the bU1ldlng.
D1SCUSSlon
Santa Monlca propeller lntends to occupy 5,000 square feet of
hangar space and 706 square feet of offlce space for a perlod
of flve years beglnnlng October 1, 1994. In addltion, Santa
Monlca Propeller leases two land areas for propeller OCT 1 1 199ft
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~nstallat~on and equ~pment storage. Santa Mon~ca Propeller
prov~des a~rcraft propeller maintenance, parts and related
services to the av~at~on publ~c The lease negot~ated w~th
Santa Monica Propeller is s~milar to prev~ous leases
approved by Counc~l for the Spec~alty Hangar av~atlon spaces.
The company is flnanc~ally sound and all reference checks
were posltlve. The company has been a tenant In the space
for f1ve years and the operat1on ~s compat1ble with the other
aviation tenants.
Budaetarv/Flnancial ImDact
The flve year lease wlth Santa Mon~ca Santa Monlca propeller
wlll generate a total of $182.404 ~n revenue for the City.
Annual revenue of $36.480 1S included ln the 1994/95 budget
and wlll be budgeted 1n subsequent years.
Reconunendatlon
Staff recommends that the C1ty Councll authorlze Clty Manager
to negotlate and execute a lease wlth Santa Monlca propeller
for hangar and offlce space ~n the Speclalty Hangar BUllding
at Santa Monlca Alrport.
Prepared by: Tlmothy A. walsh. Alrport Manager
Jeffrey P. Mathleu. Dlrector, Resource Management