SR-111186-11AAP:HED:mh
City Council Meeting 11/11/86
TO: Mayor and City Council
FROM: City Staff
/1-~
N(~Y 1 ! 1986
Santa Monica, California
SUBJECT: Authorization for City Manager to Negotiate an
Amendment to Supermarine Lease to Accommodate
Construction of New Donald Douglas Museum on the
Parcel
Introduction
This report requests that the City Council authorize the City
Manager to negotiate an amendment to the fixed base operator
lease of Supermarine of Santa Monica which adds a parcel of
approximately 1.3 acres to the leasehold in exchange for the
commitment by Supermarine to construct a new Donald Douglas
Museum of approximately 15,000 square feet as part of their
development. The Airport Commission unanimously endorsed the
proposed amendment at their meeting of October 27, 1986.
Background
Since the mid Seventies, the City has leased space free of charge
to the Donald Douglas Museum and Library to operate its aviation
museum at the Santa Monica Airport. The lease is a year to year
lease, cancellable by the City at will. The City will require
the museum's space at the conclusion of the redevelopment of the
Airport. It was accordingly incumbent upon the museum to find a
new location.
~~~~1
NOV 1 ! 1986
- 1 -
On April 22, 1986, the Santa Monica City Council approved the
execution of a lease with Supermarine of Santa Monica for 9.21
acre parcel for a full service fixed base operation. The lease
(#4671 CCS) was executed on May 5, 1986.
Since that time, Supermarine has offered to construct free of
charge to the museum a 15,000 square foot area for a Donald
Douglas Museum and Library and to furnish this space. The
officers of Supermarine have joined the Board of Trustees of the
Museum and the Museum has accepted this offer. City staff has
encouraged this development because Council and the community
have long expressed support for the Douglas Museum and because
prior fund-raising efforts by the Museum have not been very
successful. Supermarine of Santa Monica has retained
Solberg+Lowe Architects AIA, Inc. to design the museum as an
integral part of the fixed base operation and have also included
a restaurant as part of the facilities.
Supermarine has asked the City to add approximately 1.3 acres
(see figure 1) to their parcel to accommodate tiedowns which will
be displaced by museum aircraft and by the museum itself.
Inasmuch as the City has been leasing land and a building free of
charge to the Douglas Museum for some time now, staff recommends
that their request be approved and that rent not be charged for
the additional acreage, provided that Supermarine covenants to
provide 15,000 square feet to the Museum free of charge for the
term of their lease with the City. The Airport Commission
unanimously supported the staff recommendation at their meeting
- 2 -
of October 27, 1986, noting that the new museum would be a major
cultural and educational asset to the Airport and the entire
City.
Budget/Financial Impact
The proposed additional acreage for the Supermarine lease will
mean a future annual loss of $13,260.00 in tiedown revenue. This
will be offset by the eventual ability of the City to lease the
existing museum space for office uses. None of these fiscal
impacts will occur in FY1986-87.
Recommendation
City staff and the Airport Commission recommend that the City
Council authorize the City Manager to: 1) negotiate an amendment
to the Supermarine of Santa Monica lease (#4671 CCS) to
accommodate the construction of the Donald Douglas Museum on the
parcel; and 2) return to City Council for final approval of the
amendment.
Prepared by: Hank Dittmar, Airport Director
attachment: Figure 1
- 3 -
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Figure 1: Parcel 'C' of 1.31 Acres
to be added to Supermarine
Lease (#4671 CCS)
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Reference Contract
No. 4671 (CCS).