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SR-800-005 (13) RMD:EDD:F:\RESOURCE\SHARE\STAFFREPORTS\Angel Flight Lease.doc Council Meeting: February 10, 2004 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Five-Year Lease with a Five-Year Option with Angel Flight West, Inc. for space at the Santa Monica Airport INTRODUCTION This report recommends that the City Council authorize the City Manager to negotiate and execute a five-year lease with a five-year option with Angel Flight West, Inc. for space at the Santa Monica Airport. DISCUSSION Angel Flight West, Inc. intends to occupy approximately 2,384 square feet of office space in the Specialty Hangar Building for a period of five years with a five-year option beginning March 1, 2004. Angel Flight West, Inc. is a non-profit corporation that provides free air transportation for people requiring medical treatment. Pilots who volunteer their time and aircraft provide transportation. Angel Flight West, Inc. has been a tenant of the Santa Monica Airport since 1988 and has proven to be a financially sound company and an excellent tenant. The operation is consistent and compatible with the surrounding tenants. This lease will allow Angel Flight West, Inc. to expand and relocate from the current 1,027 square feet they occupy in the Airport Administration Building Courtyard. This site is on the north side of Airport Avenue and the use is aviation related. It is the south side of Airport Avenue that is the primary non- aviation designated area and which includes the arts priority buildings. 1 BUDGET/FINANCIAL IMPACT The five-year lease with Angel Flight West, Inc. will generate $214,581 in revenue for the Airport Fund. Annual revenue of $42,916 is included in the 2004/05 budget and will be budgeted in subsequent years to increase with the consumer price index. RECOMMENDATION Staff recommends that the City Council authorize City Manager to negotiate and execute a five-year lease with a five-year option with Angel Flight West, Inc. for space at the Santa Monica Airport. Prepared By: Jeff Mathieu, Director of Resource Management Rod Merl, Sr. Administrative Analyst ? Special Projects 2