SUBJECT
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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
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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 effor...
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