SR-07082008-1I~~~
City of
Santa Monicam
City Council Report
City Council Meeting:
Agenda Item: I - Z
To: Mayor and City Council
From: Robert Trimborn, Acting Airport Director
Subject: Lease of space at 3011 Airport Avenue and 3159 Donald Douglas Loop
South at the Santa Monica Airport.
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute lease agreements with two existing specialty fixed base operators: Justice
Aviation and Santa Monica Aviation providing for the continued operation of their
business activity at new locations on the Santa Monica Airport.
Executive Summary
Justice Aviation is a long standing specialty fixed base operator tenant who desires to
relocate its operation to a designated aviation use facility at 3011 Airport Avenue. The
seven-year term of the proposed lease agreement will not extend past June 30, •2015.
Justice aviation has been operating a flight school at the Airport since 1994 and is
currently located at the specialty aviation facility west of the Airport Administration
Building. Their twenty piston-powered rental and flight .school aircraft are. located in a
tiedown area one hundred yards from their operations office. This arrangement has
proved to be only marginally successful. Customers and flight instructor access to their
tiedown area creates an on-going safety and security concerh. Relocating Justice
Aviation will correct these operational issues and create a much safer, secure and
compatible operating environment. The relocation to the new site will also reduce
parking congestion in and around the Airport Administration Building. Justice Aviation
plans to renovate the new leasehold space to approve its overall appearance and
functionality.
Santa Monica Aviation is another long standing specialty fixed base operator located
within the specialty aviation facility at 3141 .Donald Douglas Loop South. Santa Monica
Aviation desires to relocate to a larger leasehold located in the same building. The
seven-year term of the proposed lease agreement will not extend past June 30, 2015.
Santa Monica aviation has been conducting piston-powered aircraft maintenance,
flight/ground school and rental/sales-business at its present location since 1989. Due to
1
space constraints, this arrangement has proved to be only marginally successful with.
very little room for customer aircraft to park and wholly inadequate meeting and training
space. Relocation to the new facility will improve spatial relationships allowing
technicians to have more space to work on customer aircraft thereby creating a safer
more efficient working environment. Santa Monica Aviation also plans to also renovate
the new leasehold space to approve its overall appearance and functionality.
Background
Justice Aviation
Justice Aviation is a long standing existing specialty fixed base operator tenant who
desires to relocate its operation to a designated aviation use facility comprised of a
6,720 sq ft hangar, a single-story 2,109 sq ft office and an adjoining aircraft tiedown
area which is located at 3011 Airport Avenue, Santa Monica, California 90405: The
seven-year term of the Lease Agreement will not extend past June 30, 2015.The
leasehold space is located in a designated aviation use area on the north side of Airport
Avenue and is adjacent to the lower taxiway.
Justice aviation has been operating apiston-powered flight school and aircraft rental
operation at Santa Monica Airport since 1994. Justice Aviation moved from the Krueger
Aviation leasehold to their present location in the specialty aviation facility located just
west of the Airport Administration Building at 3163 Donald Douglas Loop South in 2002.
The twenty piston-powered rental and- flight school aircraft are located in the midlevel
tiedown area adjacent to Airport Park. This arrangement has proved fo be only
marginally successful -the office area is cramped with little room for ground school
training. The aircraft tiedown area is located a considerable. distance away from the
office. Customers and flight instructors must walk from the Justice Aviation office east
on the Airport service road, through a secure pedestrian gate (with a cipher lock) and
upwards of one hundred yards to get to the aircraft tiedown area. This is arrangement is
considered a safety and security concern that needs to kie rectified. Even though there
has not been an incident to date, the cipher code on the pedestrian gate can easily be
dissemiriated to individuals who don't have business being on the airport. Pedestrians
walking on the service road and across aircraft ramps pose a safety concern that needs
2
to be addressed. Relocating Justice Aviation to the 3011 Airport Rvenue Leasehold
facility will correct .these operational issues and create. a much safer and secure
operating environment that is considerably more customer friendly. Their business plan.
will not change following the completion of the move.
3011 Airport Avenue. is a designated aviation use facility. During its 60+ years of
existence, it has been used by several aviation service providers and for .other uses.
The facility was temporarily used as an interim home for the City's Park Maintenance
Division due. to methane contamination at their. previous location at the City Yard,.
Coinciding with the construction of Airport Park (which displaced aircraft tiedowns),
3011 Airport Avenue was returned to aviation use to comply with the tenets of the 1984
Settlement Agreement to provide for the requisite space for aircraft parking.. Park
Maintenance was subsequently relocated to the old Fisher Lumber site. The Hangar
and office space is currently being used as temporary storage space for reserve fire
apparatus and equipment. The Fire Department will relocate their equipment to other
locations to allow for. the Justice Aviation use of the facility. The outside tarmac is
already used for aircraft parking -these aircraft will be moved to the tiedown spaces
vacated by Justice Aviation.
Santa Monica Aviation
Santa Monica Aviation is another long standing existing specialty fixed base operator
located within the specialty aviation facility at 3141 Donald Douglas Loop South (west of
the Airport Administration Building). Santa Monica Aviation desires to relocate their
operation to a larger leasehold space located in the same facility. The proposed
leasehold is comprised of 8,535 sq ft of hangar space; 3,410 sq ft of
office/meeting/training room areas and four aircraft tie-down spaces. The new location
is located at 3159 Donald Douglas Loop South, Santa Monica, California 90405. The
seven-year term of the Lease Agreement will not extend past June 30, 2015. The
leasehold space is located in a designated aviation use area.
3
Santa Monica aviation has been conducting piston-powered aircraft maintenance,
flight/ground school .and aircraft rental/sales operations at its present. location since
1989. Its two rental and flight school aircraft are located in the tiedown area adjacent to
the facility. Due to space constraints, this arrangement has proved to be only marginally
successful with very little room for customer aircraft to park and wholly inadequate
meeting and training space. Relocation to the new facility at 3159 Donald Douglas Loop
South will improve spatial relationships allowing technicians to have more space to work
on customer aircraft thereby creating a safer more efficient working environment. Santa
Monica Aviation plans to renovate the new leasehold space to approve its overall
appearance and functionality. Their business plan will not change following the
completion of the move.
Airport Commission Review
During the June 2, 2008 Airport Commission meeting, staff presented Santa Monica
Airport Applications for Commercial Operations Permit (COP) for both Justice Aviation
and Santa Monica Aviation for the Commissions review and recommendation.
Subsequently, the Airport Commission recommended that the City Manager
conditionally approve the COPS with the stipulation that the City .Council approve the
Lease Agreements.
Discussion
The relocation of these specialty fixed base operators to new facilities will improve
efficiency, security and safety of the Airport. Additionally, the new locations will afford
much improved customer access and service. Both Justice Aviation and Santa Monica
Aviation have proven to be model tenants with exemplary reputations within the
industry. Their business plans exclusively revolve around compatible piston-powered
aircraft -the desired type of aircraft operations expressed by the community and the
Airport Commission. Justice Aviation and Santa Monica Aviation actively participate in
the Fly Neighborly Program and fully cooperate with the City in the enforcement of the
provisions of the Airport Code and regulations of the Noise Abatement Program. Both
4
are required to fully brief and give new customers a copy. of the City's aircraft noise
abatement regulations and procedures. The tenants are responsible for all approved
leasehold improvements -the City will not do the work. The planned renovations will
restore spaces that have been vacant for many months and. in need of facility repair.
These repairs include inoperative doors, leaks, floor resurfacing and painting. Thee
proposed improvements will greatly enhance the value of the City's assets. The cost of
the improvements will be borne by the tenants.
Financial Impacts & Budget Actions
Justice Aviation will pay the City $4,822 per month in initial rent for the leasehold facility.
The monthly rental is subject to an annual CPI increases commencing September 1,
2009. Justice Aviation will expend a minimum of $75,000 in leasehold improvements to
improve the appearance and functionality of the facility.
Santa Monica Aviation will pay the City $4,778 per month in initial rent for the leasehold
facility. The monthly rental is subject to an annual CPI increases commencing
.September 1, 2009. Santa Monica Aviation will expend a minimum of $160,000 in
leasehbld improvements fo enhance the appearance and functionality of the facility.
The proposed FY2008-09 budget- reflects the increased rent of the 33203.402110
Airport Hangar account.
. Prepared. by:
Robert D: Trimborn, Acting Airport Director
Approved: Forwarded to Council:
5
Reference Contract Nos.
8945 (CCS) and 8946
(ccs).