AGENDA CAPTION:
Title
Consider approval of Resolution 2026-104R, approving a First Amendment to Commercial Aviation Ground Lease with 2080 Airport Drive, LLC, a First Amendment to Airport Redevelopment Lease Agreement for Commercial Use with Sykes-Vaughan Investments, LLC, and an Assignment and Assumption of Ground Leases from 2080 Airport Drive, LLC to Berry Aviation, Inc.; authorizing the City Manager, or her designee, to execute said instruments on behalf of the city; and declaring an effective date.
Body
Meeting date: July 7, 2026
Department: Airport
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Background Information:
In 2024, Berry Aviation, Inc. exercised a purchase option related to the former Redbird Flight Simulations leasehold interest and improvements at 2080 Airport Drive. For purposes of that transaction, 2080 Airport Drive, LLC, an affiliate of Berry Aviation, Inc., was formed to acquire and hold the leasehold estate and related improvements. Following the transaction, 2080 Airport Drive, LLC entered into ground leases with the City and subleased the premises to Berry Aviation, Inc.
In conjunction with the acquisition of Berry Aviation, Inc. by Bristow Group Inc., Berry Aviation has exercised its purchase option under the sublease agreements with 2080 Airport Drive, LLC. The proposed Assignment and Assumption of Ground Leases transfers 2080 Airport Drive, LLC’s leasehold interests and obligations to Berry Aviation, Inc., making Berry Aviation the direct tenant under the applicable City ground leases.
In addition, a boundary issue was identified between the 2080 Airport Drive leasehold and the adjacent leasehold held by Sykes-Vaughan Investments, LLC, doing business as US Aviation. To resolve the issue, both parcels were re-surveyed and the lease boundaries were adjusted. The proposed lease amendments update the legal descriptions, square footage, and corresponding rent for each affected lease to reflect the revised lease areas.
Approval of this resolution authorizes the City Manager, or her designee, to execute the lease amendments and assignment documents necessary to reflect the revised lease boundaries and transfer the 2080 Airport Drive leasehold interests to Berry Aviation, Inc.
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