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SR-13-B (3) TO: FRON: . Santa Monica, California, January 27, 1981 . /38 Mayor and City Council Acting Airport Director I .r...... r '.'f < -i..~/{. \ ;":. ,,, \ "'-~ ..... \> \, . SUBJECT: Airport Commission Action Thp c;"r:ltJ :1vl,; \..d Ai rport commi ssion, at their regu I ar- lll~eting - h~d ~1onday, January 26t.l'L tn....1.- "::':~ ~::: :~.:~~; =-,:+; '1n' T t was movprl hH Cc::::::~:.:. ~ ;:.;-;;:, :;CUI ~, ':'~":'V;-'~;:~ ::" C':~,~ ''5 i oner .- ..r ~~.:.1;, :":""jz.~ :":1<= ';;'l'UI i. CUlllluisslOn recommend to the !i~y r~ln~hat the City Council notify all holders of month-to-month leases of Airport property, the premises are to be vacated within one year of the date on which the notice is served to the leaseholders. Further, the Commission finds this recom~endation is based on the Commission'$ concern for the safety of the residents living in proximity to the Airport.~ Also, the City's need for additional funds, coupled with the obvious economic potential of the land, makes development for other purposes a desirable goal. ~7~' ~~a -^-vcC' . ~~:1C~.I.IC ~~ - Sear~ Roney -- ---- NOES: Vaus!!1l ...,.. - ~;o~-HeY-=r <<[.I. U VJl1 '2..:1" ~ . . More discussion between Jennings and Scott about who the non airport uses are . Scott said that exclusion could be done at a later date. YG said we should notify, if there are particular cases likethe Douglas Museum that want to come to us for specifl consideration we can do that. Stark said I wanted the same clarification re motion that I did with Jennin~s. Does her motion incoroorate what I interpret to be the airport commission's intent to include the a provision with respect to those persons whose leases~a~~ expire during the one year period. YG said that is iHX my intention, Shane aaid and with the intent that Mr. Jennin~s made that b they be ~iven one year additional. MYT YG said no, one year flat. They will be noticed now that they have an additional month to month tenancy after their lease expires up to the one year time so they get the same notice. That is my motion. Reed asked who the non airport related tenan-s are at the airport and request that McClain Drovide me with that inforMation. While seeking that infDr~atlon, Bambrick Mayor Bambrick announced that 46 chits have been handed in on the item with four to sfeak. em Rhoden ~ovcd to hear rrenbers of the public for three ~inut€s each. Second by r~PT YG. The rrction was approved ~~Xff~~MI~~~~X~MKe~ by a vote of 5XX five to one, CouncilrreFber Reed vctin~ no. .~ . . Jim Hoyt if I had been at aht Airport Commission meetin~ the spoke in support of the Airport Commission recommendation. Dennis Zene urge council to support the proposal to issue one year notice to short ter~ airport lease holders as a first important step to resolve this issue in interests of peopel you are elected to serve to close this Airport. Robert Gunnell representing Gunnell Aviation spoke in opposition to this action and the proposed Council action and closing the Airport Michael Emery spoke in support of closir.g the Airport RMK~X Rozanne Azelton spoke to reauest in support of closing the airport and develoDMent of a master plan terminating current Charles Davis spoke in upport of closing the airport aN~ uses for redevelop~ent of the land t.xfrNrll8l~:x:xR~ Jim Sharp address a portion of the land use study that has been i~nored; that area would raise almost $5 ~il in revenue by adding R~~XX~~XMIM*X so called co~patible development nixed with more T-hangars and tie-dowrs. We have been led to believe this would make the airport financially profitable. Far frcn bein~ the case, all ~~mYi~2 profits from this are fromco~mercial develop~ent of land tr.at is unrexlated to airport ooeratior.s. Also, the airnort operatiors would char.ge fro~ an enterprise that provides approx $220th dollars a year in rev to the city to a financial loss. The city would be in s position of subsidizing airport. ~ust recogn~ze that the airport cnannot and will ~ver supply city with reasonable 2.-, . . to dnll new wells on the lands so reramed and to operate, produce. rednll, deepen or plug back to any depth, and to perforate casmg at any depth belIeved to be 10 an all or gas zone. and properh' to malntam all such wells ~ubject to all provISIons of thIS lease. so long as such wells respectl1felr shall produce Ollar gas In quanrltles deemed paVIng by Lessee Temporarv d,scontmuance of pro- ductIOn from anI' wen In order to work On such well, or cessation of productIon 10 any well which 15 followed by work on such well dllIgentll' concluered to restore productIon therefrom shaH not be deemed to be an end of prodUCing from such well w:thin the meanmg of thIS paragraph Forfeiture of nghts 10 thIS paragraph pro\>lded shall be the exclUSIve remedy of lessor for the breach of anv obh- gatlOns hereunder except the obligatIons of lessee to make payments of renr:als or rovaltles 18 l'\'ocwlthstandmg anydung In thiS lease con tamed to the concrarv, tt IS expressly underscoocl and agreed that the obligatIOnS Imposed upon lessee may be suspended so long as and to the extent thar lessee IS prevented from or delayed In performmg such obltganons b\' the elements, aCCIdents, stnkes, lockouts, nots, delays 10 transpouatlOn, mablhty to secure matenals m the open market. acts of war or condItIOns attnbutable to war or complIance by lessee With federal, State, county, mUniCipal or other governmental agency regulatIOns, rules or orders, or wtth proration or curtaIlment regulanoas of authorttIes constImted by law, or other causes "evond the reasonable control of lessee, whether SImIlar or diSSImIlar to the foregomg. This lease shall remam 10 full force and effect dunng any suspensIOn of any of lessee's obhganons under an\' proVISiOnS of thiS paragraph and for a reasonable tlme thereafter. proVIded. that aftet the removal of the cause Or causes preventing or hmdenng the performal1l;e of such obhganon. ~essee dlhgenrIv commences or resumes the performance of such obhgatlOn lessee shall have rhe tight to Jom In rhe executlon of and co comp1\' WIth rhe voluntary agreement of producers representmg a maJone-1' of the produalOn In rhe dlstna In which rhe leased land IS located WIth respect: to proration or curt<nlment of production In sad dlSttlct, prOVided such agreemenr IS not contran' to law or to comply With any laws, regulations or governmental orders WIth respe<:t to any such proranon Or curtaIlment of production Whenever lessee IS requIred to make a payment or suffer tetmmatlOD of thIS lease as ro any of the bnds mduded hereunder as an alternatIve to commenCing dnlhng opemtlOns, then, so long as the obhgatton to commence dnllmg operations IS suspended by anv prov1S1on of thiS paragraph, lessee shall not be reqUIred to make such payment nor shall thIS lease be termmated If before lessee may commence dnllIng operations m the leased land It must secure a permit therefor or approval thereof In anI' form from any federal, state. counry or mun.Clpal body or agency, then If lessee shall have applied for such petmlt wuhm SIXty (60) days pnor to the dare upon wh,ch such dnlhng operatIOns must be commenced under the tl:rms of th,s lease to aVOId a forfeiture or termmatlon thereof, the obhgatlon to commence such dnlhng operations shall be suspended unnl such tlme as such permit IS gramed, or In the event such permn I' deme<! 50 long as Lessee shall m good faIth and WIth due dlhgence conduct proceedmgs appealmg from such denJal, and for a penod of rhltty (30) davs thereafter, prOVided, however, that In no event shall such obltgatlon be suspended under thiS paragraph be\'ond a petlod of one (I") vear from the time upon whICh such dnlhng operations should otherwise have been commenced 19 "Dnllmg operat~ons" as used m thIS lease IS define<! to mean am' work or acmal operanons for the purpose of dtllhng a well. mdudlOg but nor lImited to the preparattOn of the ground therefor and the bUilding of roads and facllme5. prOVIded the same be followed by the construction or erecnon of a dernck, the Installation of dnll1ng eqUlpmenc and acmal dullmg ID the ground, and that all such work be prosecuted dlltgently 20 In the event thar the leased land IS less than the enure fee Interest 10 the lands descnbed, or 1f mmeral nghts only are leased and less than the entlre mmeral nghts are covered, then the royalties herem proVided for shall be palO. Lessor onlv In the pro- portion whICh lessors 'nterest bears to the enttre undIVIded fee mterest m the land as a whole or 10 the mmeral rIghts therem If It develops that Lessor owns less than the mteresr purported ro be leased hereby. then the rentals herem prOVIded for shall be palO. lessor onh. ID the propornon which Lessor's Interest bears to the llltereSt purported co be leased hereb" If Lessor owns a greater Interest In the lands descnbed than IS purported to be leased hereby or hereafrer acqUires am' additIonal Interesr or tIde 10 the lands descubed. then thiS lease shall co\'er such greater or addmonal after-acqulIed IOterest or title, and Lessor agrees co gIve Lessee wntten nOtice of anv such acqUlsltlon as soon as the same IS made, III which event the renrals and royalnes payable to lessor shalt be mcreased pwportlOnatel} 21 lessor hereb\' agrees that Lessee, at JtS optIon. may pay and discharge anv raxes, mortgages or other hens eXlsrmg, leVIed or as~essed 00 or agalOst the leased land and, In the event tt exerCIses such optIOn, tt shall be subrogated to the tights oi any holder or holden thereof and may reImburse Itself by applymg to the discharge of any such mortgage, tax or mher lIen, any royalty or rentais acctumg hereunder lessee agrees that thiS lease shall be sub Jeet and s<.:bordmate to the hen of anv mortgage or deed of trust here- after executed by Lessor or hiS successor or assigns to secure a bona tide loan or renewal of any 5Uch loan lessee, at ttS option. shall have the nght to defend any SUIt brought attackIng lessor's nde to the leased land, Ot to bnng a qUiet-tide acnon lO Lessors name to validate Lessor's [Ide thereto or 10 ttS own name to valtdate Lessee's tide to the leasehold created hereby, and III such case lessor agrees full\' to aSSiSt and cooperate With Lessee III any such action The reasonable COSt and expense of any aCtIOn to defend or valodate lessor's mle shall be deductible bT lessee from momes becommg due co lessor hereunder 22 If the estate of either parry hereto IS aSSIgned or conveyed r and the pnvllege of aSSlgmng 10 whole or In part IS expressl\' allowed j the nghts and obhgattons created hereby and the co\'enanrs hereof shall extend to and be bmdlng upon such parry's assIgns or transferee. and the part\' so assigning or transfernng such Interest shall thenceforth be released froro all obligations hereunder ro the extent of the mterest so asSigned or transferred. bur no change of ownershIp 10 rhe land or In the rentals or royalties shall be recognIzed b,' Lessee unnllessee has been furnIShed w~rh written nott,e of such transfer or a5SIgnmenr. together with a certIfied copy of the Instruments of transfer or aSSIgnment If thiS lease shall be assigned as to a particular part or as to partlcular parrs of the leased land, such dlVl51cn or se\'eranCe of the lease shall consnture and create separate and dlst10ct holdlllgs under the lease of the sevetal portIOns of the leased land as thus dIVided. and [he holder of each such pornon of the leased land shall be requIred to comply with and perform the Lessee's obltgatlons under thiS lease for, and only [Q the extent of, hiS portIOn of the leased hmd, proVIded rhat nothmg herem shall be con~trued to enlarge the dnlhng or rental obhganons, and proVIded further that the commencement of the cnlltng operatIons and the prosecutIon thereof, as proVIded m Paragraph 6 hereof, either bv the lessee or any assignee hereunder, shall proteCt the lease as a whole .:. ~ lessee, at ItS electIOn, may make all payments aCCtlllllg ro Lessor hereunder and delIver statements prOVIded for herem bv mallmg or delivenng the same to lessor personally, or b\' malhng or dellvenng the same to Bank of Amenca National Trust & Savmgs .A.ssoclatloo, Seventh and Spnng Streets, ~os Angeles 14, Cahforma, or CO 1[S successors or assigns, herem deSignated by Lessor as deposltolT, for the credIt of Lessor, and Lessor hereby appoints said deposItory as rhe agent of Lessor to receive rov31ty and other payments and statements hereunder, give acquIttance therefor and otherwise act for Lessor m regard to such payments and statements ~4- . . Scott said there is nothing in either of my Motions and in this Motion that takes the position that categorically that the city is closin~ the airport. McClain read list of non airport tenants Reed said it should be clear to the Council that action you are taking is M in no way going to clear the airport of everyone but the Duke lease. There are otter leases with other options. whether or not they are airport or nonairport and I'm not so sure you would want to p arbitrarily put some of these people out of business who hw we have just heard listed who have nothin~ to do with the airport and I wonder what your concent of land lord tenant relations are. Jennin~s discussed five year options. - unilateral? There are some who could be thE:re 10 years. (no one was sure about what) ~,kClain said something in leases relates to a chan~e in the land use and I K~K believe that the airport related uses that have those options are required to quit if the land USES chan~es, I can't say that applies to each and every option, but to sone. Rhoden - re question of whEther or not ti~ downs and han~a~ rentsals should be included ir. one YEar nctice. likE clarification and advice as to ~dvisability of incl~din~ that, why include those, we can ~lv0 thc~ 30 day ~otiCE any tine ~E wa~t. correct? ~~ . . McClaim said I wouldnft see why you couldn't. Rhoden - so clarification if it was your int~nt to include that ir. the motion and I would ~ot ~ind excluding that if it was your intention. Scott - the ~otion before you is that which was approved by the airport conmission, it does not in any respect affect the holder of a valid lease that exists on the airport now. In terMs of those that for whatever reason the Council May wish to exclude or ~odify the terns, you meet twice a month and you can consider those on a case by case basis, but it seems to ~e that what we have before us is quite clear, it affects no one other than holders of what are essentially expired leases holding over on a month to month basis. YG said she would be happy to give notice to all of those tie-downs and hangar lessees because one of the benefits of this motion is that it should at some poir.t rather t soon be~in to lower the nUMber of airport operations around the airport, but I am not sure whether the Airport Commission conid considered the tie-downs and hangars in their motion to us. Can I get clarification? Scott said some arE month to ~onth and some are day to day. Shane said Sea:M:rs who i'lade the Trotion is here at the Airport Com is here anc I recollect that no mention was made as to the tie downs or hanrrar rentasls. YG said. she would like a clarification. )~ . . MPT YO - if it was not included I will ask the Airport Com to consider it next time. Sears member of the Airport Cowmission said it was not the intention of the airport com to include aircraft per se~ it was the intention to include airport ope-ators. MPT YG saidmy motion stands and we can make another. m ... motion to was approved by the followin~ vote: CV: A-f: YO, J€n Rhoden Scott Ne~: Reed Barr-brick MP~ YG moved to direct the Airport ComMission to study the question of tie-down and hangar of Airport tie-down and han~ar leases which may be expiring shortly with options to vie ~ive the Council some direction for us on what should consider. Scott - rather than ~ettin~ into a ~uarrcl acout lessees with options I would ell support t~c ACorn dec1Gi~g what they wish to do about tiedowns and han~e~s, I Gon't think the ComMission at this point needs to ~et involved in... ]~ . . MPT YG m~X amended the motion to direct toXK the Airport Commission to consider action to vacata the month to month or daily tenancies of tie-down and hangar facilities at the Airport and report back to the City Council. Second by Cm Scott. The motion was approved by the following vote: CV: Aff: YG~ Jen Rhoden Scott Bambrick Neg: Cm Reed * eM Jennings moved to request the Plannin~ Commission~ the Airport Co~~ission~ the Housing Commission and the Commission on Older Americans to hold appropriate hearings toXH~I~ solicit views froM the public concernin~ the types and mixes of uses to be developed on the Airport property if the airport is closed or on the prop properties we have just been discussing end to make recommendations to the A Council based upon such hearings. The motion failed for Id~k of a second. Reed said the motion was too broad and too scattered and it needs more focus with a ti~e limit and no great service to public by requiring them to attend different hearings. Ought to put it under one commission~ protably Planr.in~ Commission, and ask they have a study session and invite other cOM~issions to cresent su~gestions to them. Furth2r discussion, including ~PT YG re sin~lc seuarate cOQnission. Jenni~~s a~ainst a separate committee. Scott said you should find rnaKMI~if.sXXX out wt2t hanpcns at the eld election and have a ~eetin~ after the election. E Jennin~s said mavbe it should start with us and refer. 2-1J Scott said recaleAltr for Council referral at~at time. in April MPT YG moved a substitute motion to request the Planning Comission to consider the types and mixes of uses to be developed on the Airport property that will be available at their first ~eetin~ in May. Second by MX em Jennin~s. Scott it seems there isn't a point until triggering anything until after tb.e votes have been counted, enormous staff time before the h€arln~ unless you want to let everyone tell us what they want us to do. Recalendar it for the city council for referral at that time. Followin? dsicsLs discussion, and with the consent of the second, MPT YO amended the substitute motion to include the sgug~estion of CouncilMember Scott to have this the matter of Counci1merr.ber Jenings motion No.3 deleting every thin? but the Plannin~ COMmlson placed before the Citv Council at the second m~~~I*~X meeting in after the electior. April, 1981. Second by C~ Scott. The wotion was approved ty the follo..-.r.!.nR' '.rote: cv. AKXXXM Unanaimously aDproved 6-0 3~