SR-010996-6L
AP:JPM:TAW:mh:comblned
Clty Councll Meetlng 1/9/96
{'on1YCJ(!1 Nos. 117~' (; 1.7}]q (as)
Santa Monlca, callfornlJAN 0 9 1996
TO:
Mayor and Clty Caunell
From:
City Staff
SubJect:
Recommendatlon TO Authorlze Clty Manager To
Negotlate And Execute Leases With Renan
Productlons, Inc., BerllD AVlonlCS and Angel
Fllght For Space At Santa Monlca Alrport.
Intraductlon
ThlS report requests the City Counell autharlze the City
Manager to negotlate and execute leases wlth Renan
Productlons, Inc., Berlln AVlonlCS and Angel Fllght for space
at the Santa Monlca Alrport.
Backaround
The Alrport Admlnlstratlon BU11dlng lower level has spaee
avallable for lease to non-avlatlon bUSlnesses. Many non-
aVlatlon buslDesses such as arehltectural and englneerlng
flrms are leaslng space in the buildings lower level. The
revenue from the offlce space lS used to pay the debt serVlee
on the constructlon of the buildlng whlch was bUllt ln 1988.
The Clty owned Speclalty Hangar BUlldlng was also bUllt In
1988 and has contlnuously provlded spaee avallable for lease
to alrcraft speclalty operators to provlde alreraft
malntenance and repalr, avionlcs work and a varlety of other
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JAN 0 9 1996
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essential aviation services. The exist1ng hangar space lS
located on the upper level of the bU1ld1ng and the revenue
from the hangar space 1S used to pay the debt service on the
constructlon of the bU1ldlng.
D1Scusslon
Renan productlons and Berlln AVlon1CS are propos1ng to lease
space In the Spec1alty Hangar BUlld1ng and Angel Fllght lS
requestlng a cont1nuat1on of thelr lease In the A1rport
Adm1n1strat1on BU1lding. Renan product1ons, Inc. 1ntends to
occupy 2,573 square feet of offlce space for a per10d of flve
years beg1nnlng January 1, 1996. Renan Product1ons, Inc.
provldes vldeo edltlng and consult1ng serV1ces for telev1slon
and mOV1e StudlOS. The lease negotlated wlth Renan
Product1ons, Inc. lS s1m1lar to preVlOUS leases approved by
the Clty CounCll for the Spec1alty Hangar non-avlatlon spaces
and lncludes three 5 year optlons. Each opt1on lS exerc1sed
independently and the base rent lS adJusted annually by the
lncrease ln the consumer prlce lndex. The company 1S
flnanclally sound and all reference checks were poslt1ve.
The company has been a tenant In the space for three years
and the operatlon lS compatlble wlth the other tenants.
Berl1n Avion1cs Inc. lntends to occupy 5,058 square feet of
hangar space for a per10d of flve years beg1nning January 1,
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1996. Berlln AVlonlCS Inc. provides aircraft malntenance,
parts and related serV1ces to the aV1atlon publ1C. The lease
negotlated with Berlin Avionics Inc. is Sl~llar to preV10US
leases approved by the C1ty Councll for the Speclalty Hangar
aVlatlon spaces. The company lS sound flnanclally and all
reference checks were posltlve. The company has been a
tenant at the Alrport for over 10 years and the operatlon 1S
compatlble wlth the other aVlatlon tenants.
Angel Fllght lntends to occupy 1,027 square feet of offlce
space for a perl ad of one year beglnnlng January 1, 1996.
Angel Fllght lS a non-proflt corporation that prov1des free
a1r transportatlon for people requ1r1ng med1cal treatment.
Transportatlon lS prov1ded by pllots who volunteer their tlme
and alrcraft. The lease negotlated wlth Angel FIlght 1S
slffillar to preVlOUS leases approved by the Clty Councl1 for
the Alrport Admlnlstratlon BUlldlng non-avlatlon spaces. The
company lS financially sound and all reference checks were
posltlve. The company has been a tenant 1n the space since
1988 and the operation 18 compatlble wlth the other tenants.
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Budaetarv/F1nanC1al Imnact
The f1ve year lease w1th Renan Productlons, Inc. w1ll
generate $192,938 in revenue for the Clty. Annual revenue of
$38,588 1S 1ncluded 1n the 1995/96 budget and w1ll be
budgeted 1n subsequent years to 1ncrease w1th the consumer
price 1ndex.
The f1ve year lease w1th Berl1n AVlon1CS Inc. w1ll generate a
total of $121,392 1n revenue for the City. Annual revenue of
$24,278 15 1TIcluded lTI the 1995/96 budget and will be
budgeted 1n subsequent years.
The one year lease w1th Angel Fl1ght wlll generate $22,799 1n
revenue for the City Wh1Ch 1S lncluded In the 1995/96 budget.
Recommendat1on
Staff recommends that the C1ty Councll authorlze C1ty Manager
to negot1ate and execute leases with Renan Product1ons, Inc.,
Berlln AVlonlCS and Angel Fllght for space 1n the Speclalty
Hangar and A1rport Admln1stratlon BUlld1ngs at Santa Monlca
A1rport.
Prepared by: Tlmothy A. Walsh, Alrport Manager
Jeffrey P. Math1eu, Dlrector, Resource Management
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