REQUEST FOR CITY COUNCIL ACTION
DATE: 05/03/2023
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
SUBJECT:
Title
AUTHORIZATION TO WITHDRAW APPROVAL OF CONSENT TO ASSIGNMENT OF AIRPORT LEASES TO FLIGHT VENTURES, LLC
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EXECUTIVE SUMMARY:
This staff report asks Council to withdraw its approval to assign the lease agreements for Parcel IV and V of the Corona Municipal Airport from Corona Executive Hangars to Flight Ventures USA, LLC. The transaction was not finalized as scheduled and Flight Ventures has been non-responsive to requests for updates. Staff is seeking Council's authorization to withdraw its approval and retrieve documents from escrow to properly terminate this transaction.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Withdraw approval of Consent to Assignment and First Amendment to Lease Agreement between the City of Corona and Corona Executive Hangars for Parcels IV and V; and
b. Authorize the City Manager, or his designee, with the assistance of legal counsel, to prepare and deliver a letter to escrow withdrawing the City's approval and to retrieve all associated documents from escrow.
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BACKGROUND & HISTORY:
The City of Corona holds a Recreational Lease from the United States Army Corps of Engineers. Under this lease, the City utilizes approximately 1600 acres as open space, park areas, and the Corona Municipal Airport. The City currently has three (3) sub-Master Lease Holders at the airport: 1) CW Transportation leases Parcel I, 2) Diamond Aero Corporation leases Parcel II and VI, and 3) Corona Executive Hangars leases Parcel III, IV, and V. The City holds Parcel VII to maintain a tie-down area for transient and long-term aircraft parking.
On August 17, 2011, the City of Corona and Corona Executive Hangars entered into a Lease Agreement for Parcel III, IV, and V. Parcel III is approximately 1.61 acres and has 48 hangars and two offices. Parcel IV is approximately 1...
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