City Council
	Agenda Request
Agenda Of:	05-04-10	Agenda Request No:		iii-f
Initiated By:	Phillip W. Savko	Responsible Department:		Aviation
Presented By:	Phillip W. Savko	Department Head:		Phillip W. Savko
		Additional Department. Head (s):
Subject / Proceeding:	Approve Lease
Exhibits:	Exhibit A – Lease Layout 2B hard copy of Lease in the Council office
Clearances			Approval
Legal:	Aaron Dobbs Assistant City Attorney		Executive Director:	N/A
Purchasing:	N/A		Asst. City Manager:	Steve Griffith
Budget:	N/A		City Manager:	Allen Bogard
Budget
Expenditure Required: $			0
Current Budget: $			0
Additional Funding: $			0
Recommended Action
Approve ground lease (in conjunction with business hangar land lease)
Executive Summary
Anson Air has operated a flight school at the Sugar Land Regional Airport since 2004. The current location conflicts with planned Taxilane J development and the flight school will need to relocate. There is a site in the new T-hangar Complex that has been designated for Anson Air, with 2 adjacent lease sites that Anson Air has expressed an interest in developing. In addition to the 1.81 acre site designated for Anson Air’s hangar, the airport is proposing a separate ground lease with Anson Air for a small adjacent site. This ground lease is for Lease Layout #2B, a 0.13 acre site (abutting the 1.81 acre site), which will be used to construct additional parking, associated fencing, access gate and landscaping. The term is 30 years, at a rate of $135 per month, for the first five years, with a 10% escalation every five years. There is also an adjacent 0.88 acre site (Lease Layout #1), which may be used for future expansion of Anson Air’s hangar, or may be leased to a third party to construct a hangar. There is a provision in this ground lease to offer Anson Air right of first refusal for the third site (in the event that the airport has the opportunity to lease the site to another party). If Anson Air does not enter into a lease for the 0.88 acres within a specified time, the 0.13 acre site and any associated improvements will revert to the City, in accordance with lease terms. The 0.13 acres may then be combined with the 0.88 acres to create a more desirable site to lease for development. The effective date for the ground lease is July 1, 2010.