SUBJECT
title
Authorizing the City Manager to execute a Parcel Development master ground lease agreement between the City of Laredo and Freeman Holdings of Laredo, LLC, for a total of 95,688.2 square feet , made up of multiple tracts of land owned and operated by the airport, including: (1) a 1.37-acre ground lease tract for the construction and development of FBO improvements; (2) the existing Fuel Pad facility; and (3) Hangar 1309. The combined annual rent for all leased premises shall be $213,040.84, consisting of: (i) annual ground rent of $40,000.00 for the 1.37-acre tract; (ii) annual rent of $13,322.40 for the Fuel Pad; and (iii) annual rent of $159,718.44 for Hangar 1309. Rental amounts shall be adjusted in accordance with changes in the Consumer Price Index (CPI), in addition to periodic fair market rental value adjustments as provided in the applicable lease agreements. Lessee shall also be responsible to comply with fuel flowage fees and landing fees approved by the Laredo City Council; providing for severability; and providing for an effective date.
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PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
The Laredo International Airport is proposing to enter into a parcel development ground lease agreement with Freeman Holdings of Laredo LLC, a limited liability corporation, for the purposes of constructing and developing a Fixed Based Operator (FBO) Facility at the Laredo International Airport. The Laredo International Airport currently has two FBO’s that provide service to General Aviation aircrafts. In order to better service customer’s landing at LRD, the airport is interested in developing a new FBO facility.
Freeman Holdings Group is assuming multiple leases from Barker Aeromotive, one of the FBO’s at the Laredo International Airport. Barker Aeromotive, is a long term tenant of the Laredo International Airport who has remained in good standing. Freeman Holdings Group, LLC is proposing to develop an FBO facility on a 1.37 acre tract of land in an effort to expand the services Barker Aeromotive currently provides. Approving this lease will allow for the development of the new facility, as well as provide increased services at the Airport.
The break down of the tracts of property and the monthly/annual rents are as follows:
(1) 1.37 acre tract of land - Monthly Rent: $3,333.33; Annual Rent: $40,000
(2) Fuel Pad - Monthly Rent: $1,110.20; Annual Rent: $13,322.40
(3) Hangar 1309 - Monthly Rent: $13,309.87; Annual Rent:$159,718.44
Combined Total Monthly Rent: $17,753.40
Combined Total Annual Rent: $213,040.84
Combined Total Square Feet: 95,688.2 sqft +/-
The Laredo International Airport is in support of the development of said project. If approved, this project will attract more aircrafts to the Laredo International Airport and will also create new jobs, leading to the stimulation of our economy.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
Policy 1.5.1: Encourage the development of new industrial areas and the redevelopment of existing older or marginal industrial areas.
Policy 9.2.5: Seek partnerships with cities in the broader region to cooperate on economic development initiatives.
Goal 9.3: Provide the necessary environment for local, regional, and international entrepreneurs to find success in Laredo.
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Policy 9.3.10: Encourage the development of higher bandwidth networks throughout the city, especially those servicing the target industries identified herein.
Summary of alignment:
This lease agreement strongly supports Viva Laredo’s focus by advancing its core focus on industrial growth and economic diversification. It reinforces the plan’s emphasis on regional collaboration and entrepreneurship by attracting aviation, logistics, and international business activity while creating opportunities for both local and global operators. Additionally, the project supports the plan’s forward-looking focus on infrastructure and innovation by driving investment in modern, high-bandwidth systems essential for competitive, globally connected industries.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this motion.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: N
Source of Funds: Aeronautical Land Rent - Revenue
Account #: 242-000-361-2070
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Revenue collected will be allocated in the Laredo International Airport Fund revenue account: 242-0000-361-2070.
(1) 1.37 acre tract of land - Monthly Rent: $3,333.33; Annual Rent: $40,000
(2) Fuel Pad - Monthly Rent: $1,110.20; Annual Rent: $13,322.40
(3) Hangar 1309 - Monthly Rent: $13,309.87; Annual Rent:$159,718.44
Combined Total Monthly Rent: $17,753.40
Combined Total Annual Rent: $213,040.84
Combined Total Square Feet: 95,688.2 sqft +/-