HomeMy WebLinkAbout12/18/2013 - STAFF REPORTS - 2.Q. pALM$.
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Cq<IFORN�p+ CITY COUNCIL STAFF REPORT
DATE: December 18, 2013 CONSENT AGENDA
SUBJECT: ACCEPTANCE OF HANGAR LEASE SURRENDER FROM HECKMANN
ENTERPRISES
FROM: David H. Ready, City Manager
BY: AIRPORT
SUMMARY
An action to approve an aircraft hangar ground lease surrender by Palm Springs
International Airport aviation tenant Heckman Enterprises, owner of Desert Springs
Aviation LLC., and accept the donation of the hangar building.
RECOMMENDATION:
1. Approve surrender of a lease agreement No. A3978.
2. Approve the Donation Agreement for the hangar building of Desert Springs
Aviation located at 3200 Aviation Way.
3. Authorize the City 9 necessary Manager to execute all documents.
ry
STAFF ANALYSIS:
Heckman Enterprises, a corporate flight operation, leases a 30,000 square foot City
aircraft hangar on three acres of airport land located on Taxiway G.
Heckmann Enterprises has a leasehold interest in an aircraft hangar under a previous
assignment in 1998, until 2024, at which time, the hangar will become the property of
the Airport. As part of this arrangement, they lease the land under the hangar from the
Airport for $4,500 monthly.
As Heckman Enterprises now utilizes the airport at their corporate offices in Phoenix,
they no longer require the facility at the Palm Springs International Airport. Hence, they
are proposing to surrender the ground lease and donate the hangar to the Airport now,
instead of in 2024.
ITEM NO. _,,.,_
City Council Staff Report
December 18. 2013- Page 2
Acceptance of Lease Surrender from Heckmann Enterprises
Upon receipt of the hangar, the Airport will begin efforts to secure another tenant lease
arrangement for the same facility with a fixed base operator. The facility is considered
to be in very good condition and if leased, would generate additional revenue to the
Airport.
FISCAL IMPACT:
Under the current arrangement with Heckmann Enterprises, the airport collects $4,500
per month for the ground lease. Staff is in the process of obtaining the appropriate
appraisals for a new tenant — who will pay market rate for land and hangar facilities. In
the event a new tenant is not secured, the Airport would receive less revenue from the
site than it does currently, while the property is not occupied.
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Thomas Nolan,
Executive Director, Airport
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David H. Ready, City lager
Attachments: Donation Agreement
02
DONATION AGREEMENT
THIS DONATION AGREEMENT ("Agreement") is made as of November 10, 2013,
between the City of Palm Springs, a California charter city ("Donee"), and Heckmann
Enterprises, Inc. (owner of Desert Springs Aviation, LLC, A Single Member LLC) ("Donor").
Donor is the Lessee of certain property leased from the Donee and generally located at
3200 Aviation Way, Palm Springs, California ("Leasehold") and is the owner of the
improvements on the Leasehold, including a substantial hangar facility, for the life of the
Leasehold. Donor has generously agreed to surrender the Leasehold to the City and donate the
hangar and related improvements to the City for airport related uses.
The Parties agree as follows:
1. Donation of Property. Donor voluntarily surrenders all of its right, title, and interest in
the Leasehold and to donate, give,transfer, and convey to Donee, at no cost to the Donee, and
Donee agrees to accept from Donor, the remainder of the Leasehold interest of Donor and the
hangar and related improvements thereon. The Leasehold interest is legally described on the
attached Exhibit A. The Donee acknowledges that no goods or services were provided to the
Donor in consideration, in whole or in part, for any cash or other property, which is the subject
of this agreement,transferred to the Donee.
2. Costs. Donee will pay any costs of recording any documents, if any, necessary to place
record title in the name of the Donee. Donor shall pay all property and possessory interest
taxes owed or otherwise accrued on the Leasehold and any improvements thereon up to and
including the Date of this Donation Agreement. Donor shall also be responsible for all utility
costs incurred through such Date.
3. Use of Leasehold. The uses permitted on the Leasehold shall be those uses allowed
under federal law on property conveyed to Donee for airport uses.
4. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, legal representatives, successors and permitted
assigns.
5. Notices. Any Notice required or permitted under this agreement shall be given by
either (1) personal delivery on an authorized representative of the other party, or (2) United
States registered or certified mall, return receipt requested, postage prepaid, or (3) facsimile
copy followed by mailed notice, or (4) a nationally recognized, reputable overnight courier, in
each case properly addressed as follows:
If to Donee: City of Palm Springs, California
Attn: City Manager
3200 E.Tahquitz Canyon Way
P.O. Box 2743
03
Palm Springs. CA 92263-2743
(T)760.322.8350 (F)760.323.8207
If to Donor: Heckmann Enterprises, Inc.
Attn: Mr. Richard Heckmann
75-080 Frank Sinatra Drive
Palm Desert,CA 92211
(T) 760.341.3606 (F)760.341.3727
Any party may change Its address for the receipt of notice by giving notice of such change ten
(10)days prior to the effective date of such change.
6. Governing Law. Agreement shall be construed and enforced according to and
governed by the laws of the State of California.
7. Counterparts. This Agreement may be executed in any number of counterparts, which
counterparts when considered together shall constitute one and the same agreement.
Donee: Donor:
City of Palm Springs Heckmann Enterprises, Inc.
By: By:
David H. Ready, City Manager l6chard J. Heckmann, President
November 10, 2013
ATTEST:
By:
James Thompson,City Clerk
November 10, 2013
APPROVED AS TO FORM:
By:
Dougl1411olland,City Attorney
November 10, 2013
04
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CnnL CODE§ 1189
State of Califo is
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On ' A613 before me
Date Here Insert alne ntl T'MI`I the 61ficer
personally appeared rCi
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who proved to me on the basis of satisfactory
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I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
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paragraph is true and correct.
WITNESS h nd and officials
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Place Notary Seal Above Signature of Notary Public
OPTION"L
Though the information below is not required bylaw,it may prove valuable to persons retying on the document
and could prevent fraudulent removal and reattac ant of this form to another document.
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