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ACTION SHEET ITEM FROM FINANCE COMMITTEE MEETING OF 12/04/17 FOR CITY COUNCIL MEETING OF 12/13/17 ISSUE: q) Request for Approval of Amendment NO. 3 to the Santa Fe Municipal Airport Lease Agreement By and Between the City of Santa Fe and Jet Center at Santa Fe Real Estate, LLC, for Certain Real Property Located at the Santa Fe Municipal Airport. (Kelley Brennan)
FINANCE COMMITTEE ACTION: Approved as discussion item.
FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X X X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
City of Santa Fe,
ew Mexico
200 Lincoln Avenue, P.O. Box 909. Santa Fe, N.M. 87504-0909 www.santafenm.gov Councilors: Signe I. Lindell, Mayor Pro Tem, Dist. I Renee Villarreal, Dist. Peter N. Ives. Dist. Joseph tv\. Maestas. Dist. Carmichael A. Dominguez, Dist. Chris Rivera. Dist.
l
2 2 3 3
Ronald S. Trujillo. Dist. 4 i\t\ikc Harris, Dist. ,1
Memorandum
To:
Members of the Governing Body
From: Kelley A. Brennan City Attorney Re:
Amendment No. 3 Santa Fe Municipal Airport Lease Bv . and Between the Citv of Santa h and .Jct Center at Santa Fe Real Estate. LLC
.
Date: November 20, 2017 frn· the December 4, 2017 Finance Committee Meeting and the December 13. 2017 Meeting of the Governing Body On April 16. 2016 the City entered imo a lease (the J.:.9a~) \Vith Jet Center at Santa F..: Rl:al Estate. LLC (,!_(~SF) for three parcels ofland at the airport. identified as Parcds 13. C and D. The Lease also provided for the City. upon prepayment of certain rent by JCSF. to use the prepaid rent to pay down amounts due to the lessee of a parcel of land improved with a buiiding
identified as .. Building 3002" (the land and improvements collectively, Parcel A) located bemccn Parcel 13 and the airport terminal. Thereafter. Parcel A was leased to .ICSF to use as a terminal for 24 111onths, with a 6-momh extension option. to allow JCSF time to build a terminal building on one of its other lease parcels. The short Parcel A rental term was in anticipation of the City utilizing Parcel A to expand the nirport terminal. In the interim. the City has ddcrmined that it will not need Parcel A. as it ha~ adopted other plans. As a result, Pared A is nmv available for long-term use by JCSF. ·which wishes to incorporate- Pan:cl A into the Lease. In order to do so. additional time is need•:d to review and approve .ICSF's revised development plan and to integrate it into the original Lease. as amended by 1\mendmcnt Nos. I and 2 thrnugh an updated Amended and Restated Lcas1.:. Amendment No. 3 to the Lease. attached. cxtcnd3 the Parcel A lease for 6 months to June 15. 2018. w:t!1 an (>1Jtion to further extend for up to six months.
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AMENDMENT NO. 3 SANTA FE MUNICIPAL AIRPORT LEASE AGREEMENT JET CENTER AT SANTA FE REAL ESTATE, LLC THIS AMENDMENT NO. 3 TO LEASE is made and entered into as of the 13th day of December, 2017, by and between the CITY OF SANTA FE, NEW MEXICO, a municipality and political subdivision of the State of New Mexico~ or Lessor), and JET CENTER AT SANTA FE REAL ESTATE, LLC, a New Mexico limited liability company (,JCSF or Lessee) (collectively, the Parties). WHEREAS, the Lessor owns and operates the Santa Fe Municipal Airport (Airport), located in Santa Fe County, New Mexico; and WHEREAS, on February 25, 2015 the City adopted by ordinance a lease with JCSF (the Lease) for three parcels of land at the Airport identified as Lease Parcel B (Parcel B), Lease Parcel C (Parcel C), and Lease Parcel D (Parcel D) (collectively, the Lease Parcels), together with the unimpeded right of access thereto; and WHEREAS, the Lease became effective on April 16, 2015; and WHEREAS, the City is the owner of that certain parcel of land and the building thereon (Building 3002) identified in the Lease and in Amendment No. I thereto as Parcel A, located between the Airport Terminal and Parcel B; and WHEREAS, the Parties entered into Amendment No. 1 to the Lease dated July 2, 2015, which permitted JCSF to lease Parcel A, including Building 3002 (referred to in Amendment No. I as the "A-1 Premises") along with the unimpeded right of access thereto; and WHEREAS, Amendment No. I provided that the term of the Parcel A lease would be for twenty-four (24) months, expiring on July June 17, 2017, with an option to extend for one (1) six (6) month period upon the same terms and conditions as those set forth in Amendment No. 1; and WHEREAS, Amendment No. 2 to the Lease extended the Parcel A lease term for 6 months to December 15, 2017; and WHEREAS, the Parcel A lease provided for a limited term in anticipation that the City would wish to utilize Parcel A at the end of that period for the expansion of the airport terminal; and WHEREAS, the City no longer anticipates utilizing Parcel A for expansion of the airport terminal; and WHEREAS, the Parties wish to incorporate Parcel A into the Lease for the entire Lease term, but need additional time to effectuate such transaction.
1
3
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the Parties agree as follows: 1. The Parcel A lease, including Building 3002, is hereby extended from December 15, 2017 to June 15.2018 upon the same terms and conditions as those set forth in Amendment No. I. Such term may be further extended for up to six (6) months by written agreement of the Parties. 2. All other terms and conditions of the Lease as amended by Amendment Nos. 1 and 2 shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 3 to the Lease to be executed as of the day and year first above written.
LESSOR:
LESSEE:
iviayor Javier M. Gonzales
John Marchman Managing Member
ATll:ST:
Yolanda Y. Vigil, City Clerk
City Atton cy APPROVED:
Adam Johnson Finance Director 2
4
FINANCE COMMITTEE ACTION: Approved as discussion item.
FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X X X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
City of Santa Fe,
ew Mexico
200 Lincoln Avenue, P.O. Box 909. Santa Fe, N.M. 87504-0909 www.santafenm.gov Councilors: Signe I. Lindell, Mayor Pro Tem, Dist. I Renee Villarreal, Dist. Peter N. Ives. Dist. Joseph tv\. Maestas. Dist. Carmichael A. Dominguez, Dist. Chris Rivera. Dist.
l
2 2 3 3
Ronald S. Trujillo. Dist. 4 i\t\ikc Harris, Dist. ,1
Memorandum
To:
Members of the Governing Body
From: Kelley A. Brennan City Attorney Re:
Amendment No. 3 Santa Fe Municipal Airport Lease Bv . and Between the Citv of Santa h and .Jct Center at Santa Fe Real Estate. LLC
.
Date: November 20, 2017 frn· the December 4, 2017 Finance Committee Meeting and the December 13. 2017 Meeting of the Governing Body On April 16. 2016 the City entered imo a lease (the J.:.9a~) \Vith Jet Center at Santa F..: Rl:al Estate. LLC (,!_(~SF) for three parcels ofland at the airport. identified as Parcds 13. C and D. The Lease also provided for the City. upon prepayment of certain rent by JCSF. to use the prepaid rent to pay down amounts due to the lessee of a parcel of land improved with a buiiding
identified as .. Building 3002" (the land and improvements collectively, Parcel A) located bemccn Parcel 13 and the airport terminal. Thereafter. Parcel A was leased to .ICSF to use as a terminal for 24 111onths, with a 6-momh extension option. to allow JCSF time to build a terminal building on one of its other lease parcels. The short Parcel A rental term was in anticipation of the City utilizing Parcel A to expand the nirport terminal. In the interim. the City has ddcrmined that it will not need Parcel A. as it ha~ adopted other plans. As a result, Pared A is nmv available for long-term use by JCSF. ·which wishes to incorporate- Pan:cl A into the Lease. In order to do so. additional time is need•:d to review and approve .ICSF's revised development plan and to integrate it into the original Lease. as amended by 1\mendmcnt Nos. I and 2 thrnugh an updated Amended and Restated Lcas1.:. Amendment No. 3 to the Lease. attached. cxtcnd3 the Parcel A lease for 6 months to June 15. 2018. w:t!1 an (>1Jtion to further extend for up to six months.
2
AMENDMENT NO. 3 SANTA FE MUNICIPAL AIRPORT LEASE AGREEMENT JET CENTER AT SANTA FE REAL ESTATE, LLC THIS AMENDMENT NO. 3 TO LEASE is made and entered into as of the 13th day of December, 2017, by and between the CITY OF SANTA FE, NEW MEXICO, a municipality and political subdivision of the State of New Mexico~ or Lessor), and JET CENTER AT SANTA FE REAL ESTATE, LLC, a New Mexico limited liability company (,JCSF or Lessee) (collectively, the Parties). WHEREAS, the Lessor owns and operates the Santa Fe Municipal Airport (Airport), located in Santa Fe County, New Mexico; and WHEREAS, on February 25, 2015 the City adopted by ordinance a lease with JCSF (the Lease) for three parcels of land at the Airport identified as Lease Parcel B (Parcel B), Lease Parcel C (Parcel C), and Lease Parcel D (Parcel D) (collectively, the Lease Parcels), together with the unimpeded right of access thereto; and WHEREAS, the Lease became effective on April 16, 2015; and WHEREAS, the City is the owner of that certain parcel of land and the building thereon (Building 3002) identified in the Lease and in Amendment No. I thereto as Parcel A, located between the Airport Terminal and Parcel B; and WHEREAS, the Parties entered into Amendment No. 1 to the Lease dated July 2, 2015, which permitted JCSF to lease Parcel A, including Building 3002 (referred to in Amendment No. I as the "A-1 Premises") along with the unimpeded right of access thereto; and WHEREAS, Amendment No. I provided that the term of the Parcel A lease would be for twenty-four (24) months, expiring on July June 17, 2017, with an option to extend for one (1) six (6) month period upon the same terms and conditions as those set forth in Amendment No. 1; and WHEREAS, Amendment No. 2 to the Lease extended the Parcel A lease term for 6 months to December 15, 2017; and WHEREAS, the Parcel A lease provided for a limited term in anticipation that the City would wish to utilize Parcel A at the end of that period for the expansion of the airport terminal; and WHEREAS, the City no longer anticipates utilizing Parcel A for expansion of the airport terminal; and WHEREAS, the Parties wish to incorporate Parcel A into the Lease for the entire Lease term, but need additional time to effectuate such transaction.
1
3
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the Parties agree as follows: 1. The Parcel A lease, including Building 3002, is hereby extended from December 15, 2017 to June 15.2018 upon the same terms and conditions as those set forth in Amendment No. I. Such term may be further extended for up to six (6) months by written agreement of the Parties. 2. All other terms and conditions of the Lease as amended by Amendment Nos. 1 and 2 shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 3 to the Lease to be executed as of the day and year first above written.
LESSOR:
LESSEE:
iviayor Javier M. Gonzales
John Marchman Managing Member
ATll:ST:
Yolanda Y. Vigil, City Clerk
City Atton cy APPROVED:
Adam Johnson Finance Director 2
4
