File #: Res. 2020-227R    Version: 1 Name:
Type: Resolution Status: Individual Consideration
File created: 10/6/2020 In control: City Council
On agenda: 10/20/2020 Final action:
Title: Consider approval of Resolution 2020-227R, approving an Airport Facility Lease Agreement for Commercial Use for Airport property located at 2049 Airport Drive with Gryphon Aviation, Inc for an initial eighteen-month term; authorizing the City Manager or his designee to execute the lease on behalf of the City; and declaring an effective date.
Attachments: 1. Resolution - Airport - Gryphon Aviation Lease.pdf, 2. Texas State 2049 Airport - Tenant Executed.pdf
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AGENDA CAPTION:

Title

Consider approval of Resolution 2020-227R, approving an Airport Facility Lease Agreement for Commercial Use for Airport property located at 2049 Airport Drive with Gryphon Aviation, Inc for an initial eighteen-month term; authorizing the City Manager or his designee to execute the lease on behalf of the City; and declaring an effective date.

 

Body

Meeting date:  October 20, 2020

 

Department:  General Services

 

Amount & Source of Funding
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Fiscal Note:
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City Council Strategic Initiative:  [Please select from the dropdown menu below]

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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
Economic Development - Promote & Support Potential of San Marcos Regional Airport
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Background Information:

Gryphon Aviation (dba Texas State Aviation - no connection to the University) is a flight school that has been based in San Marcos since 1998.

 

Texas State Aviation’s current lease with the City expired on May 31, 2018 with a clause for first right of refusal for continued occupancy under a revised lease. Due to the age of the hangar and associated office space, a Condition Facility Assessment was commissioned to determine the anticipated useful life of the building.

 

Upon receipt of the report, it was determined that reconstruction of the entire facility was the most economically sound option. Texas State Aviation agreed with this assessment.

 

Both parties agreed to a short-term lease arrangement whereby Texas State Aviation could continue to operate at San Marcos until they relocate. The airport may immediately begin marketing the property for redevelopment.

 

The City therefore recommends award of a Facility Lease Agreement for Commercial Use to Gryphon Aviation for 18 months with a lease rate of $2.50 per square foot ($2,000 per month). Upon expiration, the lease may continue on a month-to-month basis for no more than six months at an increased PSF rate of $2.75 ($2,200 per month).

 

Council Committee, Board/Commission Action:
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Alternatives:

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Recommendation: 

Texas Aviation Partners and City staff recommends award of a Facility Lease Agreement for the use of 2049 Airport Drive for a term of 18 months in the amount of $2,000 per month.