AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 2/6/2019
TO: Honorable Mayor and City Council Members
FROM: Maintenance Services
SUBJECT:
Title
City Council consideration of First Amendment to Corona Municipal Airport Master Sub-Lease Agreement with Diamond Aero Corporation for Parcels II and VI.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Approve the First Amendment ("Amendment") to Corona Municipal Airport Master Sub-Lease Agreement with Diamond Aero Corporation for Parcels II and VI.
2. Authorize the Mayor to execute the Amendment.
3. Recommend approval to the U.S. Army Corps of Engineers ("USACE"), the City's master lessor for the Corona Municipal Airport, that they approve the Amendment.
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ANALYSIS:
As Diamond Aero Corporation ("Diamond Aero") has been a long-term master sub-lease holder in good standing, the City entered into an extension of their agreements on May 16, 2018, which combined the Parcel II and VI Agreements into a single agreement.
Parcel II: Diamond Aero has been the City's Master Sub-Lease holder since 04-01-92. The original term of the lease agreement was for 15 years through 03-31-07. As allowed under the lease, Diamond Aero twice exercised its unilateral right to extend the term for 5 years each through 03-31-12 and then 03-31-17. Thus, the current lease agreement expired on 03-30-17 and the City has allowed Diamond Aero to be a "holdover" tenant since that time.
Parcel VI: Fred Peters, individually and through his corporate entity, Diamond Aero, has been the City's Master Sub-Lease holder since 02-15-06, when SVS Development assigned the lease agreement to Fred Peters (Fred Peters subsequently assigned the lease agreement to Diamond Aero on 01-05-11). The City's original lease holders were Gary Shelton, Richard Van Frank and David Smith (they assigned the lease agreement to their corporate entity, SVS Development, by a document dated 04-18-74). The original lease agreement w...
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