AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: July 17, 2019
TO: Honorable Mayor and City Council Members
FROM: Maintenance Services Department
SUBJECT:
Title
City Council consideration of First Amendment of the May 16, 2018 Master Sub-Lease Agreement with Diamond Aero Corporation for Parcels II and VI at the Corona Municipal Airport.
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RECOMMENDED ACTION:
Recommended action
That the City Council
1. Approve and authorize the Mayor to execute the attached First Amendment of the May 16, 2018 Master Sub-Lease Agreement with Diamond Aero Corporation for parcels II and VI for the Corona Municipal Airport.
2. Recommend to the U.S. Army Corps of Engineers (USACOE), the City's master lessor for the Corona Municipal Airport, that it approve the of First Amendment to the May 16, 2018 Master Sub-Lease Agreement with Diamond Aero Corporation for Parcels ll and VI.
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ANALYSIS:
As Diamond Aero Corporation ("Diamond Aero") has been a long-term master sub-lease holder in good standing for Parcels II and VI, on May 16, 2018 the City entered into an extension of their agreements, which extension was combined into a Master Sub-Lease Agreement for parcels II & VI ("Master Sub-Lease or "Lease Agreement").
Parcel II: Diamond Aero has been the City's Master Sub-Lease holder for Parcel II since 04-01-92. The original term of their agreement was for 15 years through 03-31-07. As allowed under the agreement, 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 retroactively extended the term from 03-30-17 through 01-31-37.
Parcel VI: Fred Peters, individually and through his corporate entity, Diamond Aero, has been the City's Master Sub-Lease holder for Parcel VI 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 leas...
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