SR-800-005 (12)
RMD:AIR:F:\RESOURCE\SHARE\STAFFREPORTS
\12-17-02 MoF-VW Lease Amnd.doc
Council Meeting: December 17, 2002 Santa Monica, California
To: City Council
From: City Staff
Subject:
Authorization for the City Manager to Negotiate and Execute a Lease Modification
with Supermarine of Santa Monica to Retain the Museum of Flying and Sub-
Lease Rental Space to an Automotive Design Studio Sub-Tenant
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a modification to the lease agreement between the City of Santa Monica and
Supermarine of Santa Monica to retain the Museum of Flying as a subtenant and to permit
an automotive design studio use at the leasehold premises.
Background
Originally founded as the Donald Douglas Museum and Library in 1974, the Museum of
Flying had been operating at its current location since April of 1989. Citing escalating
insurance and operational costs and the unsuitability of the Airport as base for flying World
War II warbirds, the Museum of Flying suspended operations on July 28, 2002. In
addition Museum officials indicated that funding sources were no longer adequate to
sustain museum operations and hours. Staff met with Supermarine management on
numerous occasions in an attempt to retain the Museum on the field to display artifacts
and exhibits relevant to the history of the Airport.
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Discussion
A reorganization of space has been devised for the Supermarine parcel that would retain
the presence of the Museum of Flying. The proposed museum space would be relocated
to Supermarine Hangar #33 directly across the ramp from its present location and
comprise approximately 12,000 square feet of hangar, ramp and office space. The aircraft
display area will be enclosed with a fence-type enclosure and partially covered to shield
visitors from weather elements, yet still provide an unobstructed view of the aircraft
operating areas. Though reduced in size, it is expected that the new location will provide
greater interaction with the aviation activities on the field and the flexibility to provide the
public with access to aviation memorabilia through a regular program of rotating exhibits.
The present site of the Museum of Flying is proposed for use as an automotive design
studio for Volkswagen of America, Inc. (?Volkswagen?). Volkswagen desires to sublease
approximately 44,000 square feet of design/studio space from Supermarine.
Volkswagen proposes to relocate their North American Design Studios to the site from
their present location in Simi Valley. The company plans to have approximately 50
employees based at the site. The present parking on the north side of the building will be
adequate to accommodate the occupants of the design studio. There will be minimal
public parking needed in the north side parking area.
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The design/studio use is not an identified ?permitted use? as provided in the lease
agreement between the City of Santa Monica and Supermarine of Santa Monica. Even
though the proposed use will be less intensive than any other permitted use, a lease
modification must be approved to accommodate the proposed use.
Airport Commission Review and Recommendation
At its meeting on November 25, 2002 the Airport Commission reviewed, considered and
unanimously supported the relocation of the Museum of Flying and the Application for
Commercial Operations Permit (COP) for Volkswagen, subject to the approval of a lease
modification.
Budget/Financial Impact
There are no budget or financial impacts.
Recommendation
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a modification to the lease agreement between the City of Santa Monica and
Supermarine of Santa Monica to retain the Museum of Flying as a subtenant and to permit
an automotive design studio use at the leasehold premises.
Prepared by: Jeff Mathieu, Director of Resource Management/Airport Director
Robert Trimborn, Airport Manager
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