AGENDA CAPTION:
Title
Consider approval of Resolution 2019-214R, approving amendment number two to the Commercial Ground Lease of Airport Property located at 1837 Airport Drive with Coast Flight Training and Management, Inc. to extend the term of the lease for 18 months through June 30, 2021; authorizing the City Manager or his designee to execute the amendment; and declaring an effective date.
Body
Meeting date: November 6, 2019
Department: General Services / Airport
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☒ Economic Development - Promote & Support Potential of San Marcos Regional Airport
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Background Information:
On December 20, 2016, City Council approved a two-year ground lease for Coast Flight Training & Management to install a temporary modular facility. The modular facility has been utilized for classroom instruction and office space. The lease was extended for one year on November 11, 2018.
Coast has been working closely with airport management and the Greater San Marcos Partnership to determine an appropriate long-term, permanent solution. Coast has continued to grow and has contributed significantly to airport operations, based aircraft counts, and fuel sales while training US Military helicopter pilots and civilian pilots.
In June of this year, Coast was selected by American Airlines to provide flight training as part of the American Airlines Cadet Academy program.
Coast has requested an additional 18 months on the ground lease to continue working through the details of a permanent location to accommodate their growth. The amendment changes the lease term from three years to four and half years (new expiration of June 30, 2021) and requires Coast to provide plans for future development no later than March 31, 2021.
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Recommendation:
Texas Aviation Partners recommends approval.