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Home My WebLink About2006-03-15 STAFF REPORTS 2M ?ALM SAQ iy V N x ryC�tAORAiEO iA' CITY COUNCIL STAFF REPORT DATE: MARCH 15, 2006 CONSENTAGENDA SUBJECT: AMENDMENT NO. 3 TO AGREEMENT NO. A4821 WITH SIGNATURE FLIGHT SUPPORT CORPORATION (FBO)TO PROVIDE AN ADDITIONAL NINETEEN (19) MONTHS FOR THE PURPOSE OF CONSTRUCTING ITS NEW $3.7 MILLION DOLLAR CORPORATE FACILITY AND REMOVE LANGUAGE REQUIRING A PAYMENT OF $35, 989.28 DOLLARS TO SIGNATURE FLIGHT SUPPORT FROM THE AIRPORT UPON • COMPLETION OF DEMOLITION TO HANGAR (PARCEL 13) FROM: David H. Ready, City Manager BY: Aviation Department SUMMARY Amendment No. 3 to Agreement No. A4821 with Signature Flight Support Corporation Fixed Base Operator(FBO)to provide an additional nineteen (19) months for the purpose of constructing its new$3.7 million dollar corporate facility and remove language requiring a payment of $35, 989.28 dollars to Signature Flight Support from the Airport upon the completion of Hangar demolition on parcel 13. RECOMMENDATION: 1. Approve Minute Order No. authorizing approval of Amendment No. 3 to Agreement No. A4821, with Signature Flight Support Corporation Fixed Base Operator (FBO) to provide an additional nineteen (19) months for the purpose of constructing its new $3.7 million dollar corporate facility and remove language requiring a payment of $35, 989.28 dollars to Signature Flight Support from the Airport upon completion of demolition to Hangar (parcel 13). 2. Authorize the City Manager to execute all necessary documents. Item No. 2 . A . City Council Staff Report March 15, 2006 - Page -2- Amendment No. 3 to Signature Lease STAFF ANALYSIS: Due to unforeseen market conditions affecting capital improvements corporate-wide, Signature Flight Support Corporation has experienced delays toward construction commencement. Signature's new Corporate facility is an important improvement representing upwards of a $3.7 million dollar investment at Palm Springs International Airport. Once completed, this facility will set the standard for future corporate improvements. In exchange for this extension of time, Signature will concede the lease provision requiring the payment of $35,989.28 to Signature from the Airport for the demolition of the `old bird" Hangar on Parcel 13. The Airport Commission, at its regularly scheduled meeting on February 1, 2006, recommended the City Council approve Amendment No.3 to the Signature Agreement. FISCAL IMPACT: Approval of Amendment No. 3 to Agreement No. A4821 represent a POSITIVE impact to the Airport's budget in that the Airport will be no longer required to pay Signature $35, 989.28 for the demolition of the "ol p rd" Hangar on Parcel 13. Richard S. Walsh, A.A.E., Director of Aviation David H. Ready, Cl_"4n:'aW Attachments: Amendment No. 3 to Signature Agreement MINUTE ORDER NO. AUTHORIZING APPROVAL OF AMENDMENT NO. 3 TO AGREEMENT NO. A4821, WITH SIGNATURE FLIGHT SUPPORT CORPORATION FIXED BASE OPERATOR (FBO) TO PROVIDE AN ADDITIONAL NINETEEN (19) MONTHS FOR THE PURPOSE OF CONSTRUCTING ITS NEW $3.7 MILLION DOLLAR CORPORATE FACILITY AND REMOVE LANGUAGE REQUIRING A PAYMENT OF $35, 989.28 DOLLARS TO SIGNATURE FLIGHT SUPPORT FROM THE AIRPORT UPON COMPLETION OF DEMOLITION TO HANGAR (PARCEL 13). I HEREBY CERTIFY that this Minute Order, authorizing approval of Amendment No. 3 to Agreement No. A4821, with Signature Flight Support Corporation Fixed Base Operator (FBO) to provide an additional nineteen (19) months for the purpose of constructing its new $3.7 million dollar corporate facility and remove language requiring a payment of $35, 989.28 dollars to Signature Flight Support from the Airport upon completion of demolition to Hangar (parcel 13) was approved by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 15th day of March, 2006. JAMES THOMPSON City Clerk i AMENDMENT NO. 3 TO LEASE WITH SIGNATURE FLIGHT SUPPORT CORPORATION FOR FIXED BASE OPERATOR (FBO) SERVICES This AMENDMENT NO. 3 TO LEASE #A4821 WITH SIGNATURE FLIGHT SUPPORT CORPORATION FOR FIXED BASE OPERATOR(FBO) SERVICES ("Amendment No. 3") is made and entered into this day of 2006, by and between the CITY OF PALM SPRINGS, a California municipal corporation("City") and SIGNATURE FLIGHT SUPPORT CORPORATION, a Delaware Corporation ("Tenant"). RECITALS WHEREAS, on January 21, 2004, City and Tenant entered into that certain Lease with Signature Flight Support Corporation for Fixed Base Operator(FBO) Services ("Agreement"), for Tenant's lease and operation of its FBO at the Palm Springs International Airport ("Airport"), as more specifically described in the Agreement; WHEREAS, on January 12, 2005, City and Tenant amended the Agreement pursuant to the terms of Amendment No. 2, superseding Amendment No. 1 in its entirety, to designate restricted building setbacks on Parcels 3 and 6. WHEREAS, the Tenant has requested an additional nineteen (19) months for the purpose of constructing its new, $3.7 million dollar, Corporate Facility and the City wishes to grant the additional nineteen (19) month extension. WHEREAS, the City wishes to remove certain language requiring a payment of Thirty-five thousand nine hundred eighty-nine dollars and thirty-four cents ($35,989.28) to Tenant upon completion of the demolition to Hangar(Parcel 13). WHEREAS, the parties wish to Amend the Agreement pursuant to the terms of this Amendment No. 3 and subject to the conditions of this Amendment. AGREEMENT ' NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Tenant agree as follows: 1. Amendment to Section 2.2. Section 2.2 of the Agreement entitled "New Corporate Facility(Parcel 1)" shall be amended to replace the following clause immediately following the existing language in such Section 2.2, with all existing language remaining in full force and effect: ".....Tenant shall construct improvements to house Tenant's corporate operations and parking facilities (collectively"New Corporate Facility") upon Parcel 1, which construction shall be completed, as evidenced by Tenant's receipt of a duly issued certificate of occupancy, by no later than May 31, 2006 (being approximately twenty-seven(27) months of the Commencement Date)." With: ".....Tenant shall construct improvements to house Tenant's corporate operations and parking facilities (collectively"New Corp[orate Facility") upon Parcel 1, which construction shall be completed, as evidenced by Tenant's receipt of a duly issued certificate of occupancy, by no later than January 1, 2008." 2. Amendment to Section 4.1(a). Section 4.1(a) of the Agreement entitled"Adjustment for Lease of Hangar" shall be amended to delete the following clause immediately • following the existing language in such Section 4.1(a), with all existing language remaining unmodified and in full force and effect: ". . . . . Following Tenant's demolition of the "Hangar" improvements, and to help offset Tenant's demolition costs, the City will credit Tenant Thirty- five thousand nine hundred eighty-nine dollars and thirty-four cents ($35.989.28) total in rental payments (representing the total accumulated rental payment by Tenant, based on rent of $0.17 per square foot per annum, for the 24-month period before Tenant's submission of plans for such demolition.)." 3. Due Execution. The person(s) executing this Amendment No. 3 on behalf of the parties hereto warrant that(i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 3 on behalf of said party, (iii) by so executing this Amendment No. 3, such party is formally bound to the provisions of this Amendment No. 3, and (iv) the entering into this Amendment No. 3 does not violate any provision of any other agreement to which said party is bound. 4. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment No. 3, the terms of the Agreement shall remain unchanged and in full force and effect. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. CITY OF PALM SPRINGS ATTEST: a municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: By: • City Attorney CONTRACTOR: Check one: _Individual_Partnership_Corporation Corporations require two notarized signatures, one from A and one from B: A. Chairman of Board, President, or any Vice President: and B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer). By: By: fi Signature(notarized) Signature(notarized) Name: sj-e-v,6.w, w• Name: ,Jri�_f' E— �"C=�I�S�Z=rs✓ Title: �r sA �, (/ P /��C.z Title: State ofr"L6>Il-rur-r } State of r_c;,z_, D,7 } Countyof }ss Countyof r�r.>=?✓vr;�; }ss On E-LFa s. , �d�?-, 2006 before n-le, On F`t�=<5 2006 before me, • personally appeared personally appeared to tom'. LcEL personally known J-:.ac7�,-s - . G. personally known to me (or proved to me on the basis of satisfactory to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged subscribed to the within instrument and acknowledged to me that he/she/they executed the same in to me that he/she/they execiuted the same in Iris/her/their authorized capacity(ies), and that by his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), or the entity upon behalf of which the persons)acted,executed the instrument. persons) acted, executed the instrument. WITNESS my hand and official seal. WITNESS my hand and official seal. n / 1 , Notary Signature:,.� yt`-,w)el.�.:�.i..(,-c . b �Olu,r.t„:, NotarySignature:,1�"LL FOt.�,t"{_ti. - ,f�-.l(;,�,i.,lay,s2r'- =� / Ij Notary Seal: W Notary Seal: `�'.�fy"••, Josephine A Deitmore ,qM"P� .,; Josephine A Dettmore ; : sr r MYCOMMISSION# DD15a466 EXPIRES &r ,,t, MY COMMISSION Y. DD158466 EXPIRE$ z+, November 8,2006 °, •e`c NovemMr 8,2006 e,' BONDED THRU TROY FAIN INSURANCE,INC �. ''�'•$fi N. ,fr\,�" WNCED THRU TROY FAIN INSURANCE,INC