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Home My WebLink About9/17/2003 - STAFF REPORTS (4) DATE: September 17, 2003 TO: City Council FROM: Executive Director-Airports SIGNATURE FLIGHT SUPPORT CORPORATION AGREEMENT-AMENDMENT NO. 7 RECOMMENDATION: Thatthe City Council approve Amendment No.7 to Agreement No. 684 between the City of Palm Springs and Signature Flight Support Corporation for office space needed for a general aviation processing facility for the Bureau of Customs and Border Protection (BCBP) at the Palm Springs International Airport (PSP). SUMMARY: Approving Amendment No. 7 to Agreement No. 684 between the City of Palm Springs and Signature Flight Support Corporation. BACKGROUND: Airport staff has been working with Signature Flight Support Corporation in regard to proposed expansion plans which includes a new executive terminal and several corporate hangars. Additionally, airport staff has also been corresponding with the Bureau of Customs and Border Protection (BCBP) regarding a new user fee facility that will meet the technical requirements necessary for general aviation processing. Correspondence from the Customs LAX Port Director has acknowledged that the floor plans presented for the modification of Signature's existing executive terminal and the time lines presented for relocation of BCBP are acceptable. As the first step to this process, an amendment to the existing agreement between the City of Palm Springs and Signature Flight Support for approximately 2,868 square feet of office space and 14,000 square feet of aircraft ramp space is needed in order to meet the deadlines imposed by Customs. The amendment will reduce the monthly rental rate for parcel no. 1 by $4,000 a month for a total time limit not to exceed twenty-four months. This is the anticipated time needed for construction of the new executive terminal. Once this new facility is constructed, the existing executive terminal including the space occupied by Customs will revert back to the City. Airport staff had initially thought that a sublease agreement would need to be executed for use of the Signature space. The Airport Commission approved a proposed sublease agreement which utilized a standard form lease agreement provided by Signature Flight Support at its September 3, 2003 meeting. However, after closer review by the City Attorney, it was determined that an amendment would be a more appropriate method to modify the existing lease in order to accommodate the Customs operation and meet the deadline of September 30, 2003 for the proposed relocation. In order to move forward in the process and meet the deadline, we are asking City Council consideration of the proposed amendment which will can ratified by the Airport Commission if approved by City Council at its October 1, 2003 meeting. 0A City Council Meeting 9-17-03 Palm Springs International Airport Signature Flight Support -Amendment No. 7 Page 2 of 2 Airport staff is continuing to negotiate with Signature Flight Support over several issues related to the proposed expansion of the existing and proposed leasehold areas. As these plans are finalized, airport staff will present a new lease agreement to the Airport Commission for recommendation to the City Council. The Planning Commission has had preliminary review of the proposed leasehold expansion and continues to work with the developers. ALLEN F SMOOT, A.A.E. /$4R} � GF2IFFITH Executive Director--Airports Assistant Director of Aviation APPROVED—u--" ' City Manager�� r Attachment: (1) Amendment No. 7 REVIEWED BY DEPT.OF FINANCE (1) Minute Order r� N:\WordPerfect\City_Council\Signature_Customs_AmendmentNo.t09-17-2003 wpd AMENDMENT NO. 7 TO INDENTURE OF LEASE AND AERONAUTICAL CONCESSION AGREEMENT NO. 684 This AMENDMENT NO. 7 TO INDENTURE OF LEASE AND AERONAUTICAL CONCESSION AGREEMENT NO. 684 ("Amendment") is made and entered into this day of September, 2003, by and between the CITY OF PALM SPRINGS, a California mruucipal corporation("Lessor") and SIGNATURE FLIGHT SUPPORT CORPORATION, a Delaware corporation("Lessee") with reference to the following facts and proposes: RECITALS WHEREAS,on October 13, 1969,Lessor and Lessee's predecessor entered into that certain Indenture of Lease and Aeronautical Agreement No. 3776, as amended and assigned, (collectively "Lease")pursuant to which Landlord leases to Tenant that certain real property located at the Palm Springs International Airport("Airport"), as more specifically described at Exhibit"A"and"A.1"to the Lease ("Demised Premises"); WHEREAS,Lessor wishes to recapture a portion of the Demised Premises,pursuant to the terms of this Amendment, for use by Bureau of Customs and Border Inspection ("Customs") for official duties,comprised of a portion on Parcel 1 of 2,868 square feet within the Executive Tenninal Building, plus aircraft parking positions consisting of two (2) parking spaces of 7,000 square feet each,all as depicted in detail at Exhibit"A"and"A.1"attached hereto and incorporated herein(the recaptured areas are hereinafter collectively referred to as the "Customs Parcel"); WHEREAS,Lessee intends to build certain improvements within Parcel 1, described as the proposed New Corporate Facility within two years of the date of this Amendment, as such improvements will be described in a new lease agreement between Lessor and Lessee; WHEREAS, as an incentive to proceed with the construction of the New Corporate Facility within two years, Lessor wishes to reduce Lessee's rent obligations under the Lease,in the amount set forth below and as consideration for the recaptured Customs Parcel, for two years from the date of this Amendment, after which time such rent reduction shall be terminated; and WHEREAS,Landlord and Tenant desire to amend the Lease to memorialize the recaptured Customs Parcel and temporary abatement of rent for such recapture pursuant to 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, Lessor and Lessee agree as follows: IRV#14123 vI -1- C� �13 1. Recapture. Pursuant to Article X of the Lease,Lessor desires to recapture that portion of the Executive Terminal Building at Parcel 1, described above as the Customs Parcel and as depicted at Exhibit"A" and"A.V. 2. Unamortized Improvements / Release. Lessee agrees that no unamortized improvements exist on the Customs Parcel, and hereby gives its release,through its execution of this Amendment, to Lessor to recapture the Customs Parcel. 3. Temporary Rent Reduction. The rent payable by Lessee to Lessor under Article II, La(1)of the Lease,as amended,representing rent for Parcel 1,shall be reduced by Four Thousand and 00/100 Dollars ($4,000.00) per month for twenty-four (24) months (for a total of$96,000) ("Temporary Rent Reduction"),commencing on the Effective Date of this Amendment,as first written above. At the termination of said twenty-four(24)months,the Temporary Rent Reduction shall cease,and rent payable by Lessee to Lessor shall increase to that existing under the terms of the Lease. Notwithstanding the termination of the Temporary Rent Reduction, Lessee shall not be entitled to lease or otherwise use the Customs Parcel, or any portion thereof, after the termination of said twenty-four (24)months. 4. Securi . Lessee acknowledges that Lessor and Customs require that the Customs Parcel remain strictly secure and unavailable for use or entry by Lessee, its employees, agents or contractors, except as otherwise available to members of the public or otherwise authorized in writing by Lessor and Customs. In light of such security needs, Lessee acknowledges and agrees that any violation of this Section 4 shall constitute a material and immediate breach of this Lease and subject Lessee to any penalties and remedies available to Lessor or Customs under State, Federal or local laws. 5. Due Execution. The person(s) executing this Amendment 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 on behalf of said party,(iii)by so executing this Amendment, such party is formally bound to the provisions of this Amendment,and(iv)the entering into this Amendment does not violate any provision of any other agreement to which said party is bound. 13. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment, the terms of the Lease shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the day of September, 2003. "Lessor" ATTEST: CITY OF PALM SPRINGS, CALIFORNIA IRV 414I23 vl a l9 q By: City Clerk City Manager REVIEWED AND APPROVED: City Attorney "Lessee" SIGNATURE FLIGHT SUPPORT CORPORATION, a Delaware corporation Name: Title: Name: Title: Lessee: Check one: _Individual Partnership_Corporation (Corporations require two notarized signatures: One from each of the following: A. Chairman of Board,President,or any Vice President:AND B. Secretary,Assistant Secretary,Treasurer,Assistant Treasurer, or Chief Financial Officer). ravu1aizsvi -3 owl - 13ECOME5 VP MAW LAW750E ENTRANCE PROJECT FOR 516NAM FUCNT 5Lff0kT 13 • e. /1 ROOM OFFICE� f RO O%1 AmaLm IA X IO 01, ` WMR OFF MOPIFICA11ON ICE AWI ROOMoom I,AI30RAT .5 X9.5 1 10 A CM 0 -I'A,�{� o ® ROOM OFFICE 9CANA 5W� 20 X 10 IVn I OM pru GA/'II .= 9.5 6.5 f /`G4��lyi� I'R0CE551hL MA FOR if�l 19X28 51GNAtlA'e I � /'I� .i f ail WANING MA UJ GUJI OMJG �� 25X11 IMMMATI —BN� COMPLETION DATE OFFICE Na to 5cal e E%MATW a - MaMW 30,2003 `.FtN7-P AAA 11�11 2868 5Q.Ff. SHEET TITLE ® ' " O rhnau OP FLOOR FLAN �STROOM k"ESTROOM DATE COVEMi7 PllG11576,2CO3 WRAtJLE MIMAY pIIA.ICACCE55-► �STi3LLE e w+.�cwNwv �vk� >Es C15TOM50FFICE ® 2OX20 4 Palm Springs Springs Intern AiNart WANING ..A 51GRA�U'.c �u�s r+Escarrcar 35X19,5 � `'' ' kWfiNG[WJrtA VE$¶6L1.E Palm Spnngs International Airport Palm East Springs, Calif Canyon Way " P60, Spnngs.California .318. 2262 T6g.318.388g—FAX 7fi8.318.3815 Ell* SHEET NO. 1 A0AACM55 Exhibit ccA�� .xrursrexmuonarrrc PROJECT rax+wzwxzvw zrnr. uxio C� tD • � tee. Gas,. rkopo%t? M0121FICA11ON • � 5WUE17P�cA 1'0 a 51CANAM a� . . . . . J FOP U5 Cu5f0M5 COMPLETION DATE E511MMP mcm35R 30,Z003 SHEET TITLE ctw FOR FLAN DATE AWU5r6,Z003 Ad Palm Sings Intemational Airport AMERr`A'S RE9JRIPOR! Palm Springs International Airport 3400 East Tahquitr Canyon Way Palm Springs,California 92262 760.318.3800—FAX 760.318 3815 SHEET NO. Aml MINUTE ORDER NO. APPROVING AMENDMENT NO. 7 TO AGREEMENT NO. 684 BETWEEN THE CITY OF PALM SPRINGS AND SIGNATURE FLIGHT SUPPORT CORPORATION FOR OFFICE SPACE NEEDED FOR GENERAL AVIATION PROCESSING FACILITY FOR THE BUREAU OF CUSTOMS AND BORDER PROTECTION (BCBP) AT THE PALM SPRINGS INTERNATIONAL AIRPORT (PSP) I HEREBY CERTIFY that this Minute Order, approving amendment no. 7 to agreement no. 684 between the City of Palm Springs and Signature Flight Support Corporation for office space needed for general aviation processing facility for the Bureau of Customs and Border Protection (BCBP) at the Palm Springs International Airport (PSP) was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 171h day of September, 2003. PATRICIA A. SANDERS City Clerk 4;3