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SR-10-24-1978-6D6Santa Monica, California September 14, 1978 6D TO: Mayor and City Council OCT 2 4 1978 FROM: City Staff SUBJECT: Proposed Lease of City -owned Hangar T -200 to WINGS WEST, INC. Introduction: This report addresses itself to the above proposed five year lease of the city owned Hangar T -200 to William Hirsch and Al Rogers, dba: WINGS WEST, INC. a flight school currently in operation at Santa Monica Municipal Airport. Background: Hangar T -200 is a City -owned (28,000 sq. ft.) commercial hangar, currently occupied by the following tenants: 1. (1/2 of area) by Steve Bragg Associates, an aircraft, boat, bus interior modific- ation firm, who, in the past, has paid the City a month l rental of $1,750. plus 1/2 of utilities. 2. (1/2 of area) by the Douglas Aeronautical Museum on a (rent -free) basis - with the City paying 1/2 of utilities and maint- enance costs - Douglas Museum is currently in the process of relocating to the former Army Reserve Facility. OCT 2 4 1978 TO: Mayor and City Council FROM: City Staff Background: (Continued) Santa Monica, California September 14, 1978 The Airport Director, with concurance of the City Manager, has negotiated a Master Lease (governing the Hangar T -200 area) with Wings West, Inc., said proposed lease, (copy attached) is for a period of 5 years - at a basic rental rate of $5,000. per month. Said Lease is subject to CPI plus 1% adjustment after three years - and the City also shares 1/2 of any sub - tenant rental above the basic $5,000. figure. The proposed Lease also is a triple -net lease - with all costs assumed by Lessee. Note: Steve Bragg Associates would become a sub- tenant of Wings West, Inc. The Airport Commission at its regular meeting September 13, 1978 formally considered the proposed lease and unanimously recommends City approval of same. Alternative Solution: Recommendation: None recommended. Approve proposed lease. Prepared by: C. V. Fitzgerald, Airport Director attachment - 2 - TRANSMITTAL INSTRUCTIONS FOR CITY AGREEMENTS, DEEDS, ✓ 6 RESOLUTIONS, ETC. DATE October 2, 1978 TO Joyce Snyder, City Clerk FROM C. V. Fitzgerald, Airport Director SUBJECT: "WINGS WEST" (HANGAR T -200 LEASE) EFFECTIVE DATE: October 1, 1978 (Date approved by Council, signed by Manager, calendar date, other) The attached material is to be distributed as outlined below: Letter &, signed document to: The following three people: (include address) (1) WINGS WEST, INC., 3300 Airport Avenue, S.M. 90405 (2) CITY CLERK, City Hall (3) AIRPORT DIRECTOR, 3200 Airport Ave., S.M. 90405 Carbon copy of letter and document to: (include address) Other instructions: 11 -1 -78 Pursuant to phone call with Rose at the Airport the contract is being renegotiated. JJ