08 - Ratification of Ground Lease Hangar A-7 Assignment

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Item No. 8 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Resolution ratifying acceptance of assignment of ground lease for Hangar A-7, Cox Field Airport DATE: November 8, 2021 BACKGROUND: On or about December 18, 2018, the City executed an extension of an airport ground lease for Hangar A-7 held by Erik Zarones extending the ground lease until June 22, 2049. On April 15, 2019, Mr. Zarones assigned his ground lease for to Sheradon R. Carter. The former city manager executed the assignment thereby purportedly giving the city's approval and acceptance of the assignment. For reasons that remain unclear, (1) the assignment was never presented to the Council for approval and acceptance, and (2) the attachment to the assignment was the original ground lease, not the extended lease (both were entitled Airport Ground Lease Agreement) STATUS OF ISSUE: This is essentially a clean-up item. Mr. Carter is trying to sell the hangar and assign the lease to a third party, and in order for the paper trail to be clean, City Council needs to ratify the former city manager's actions in accepting and approving the 2019 assignment and attach thereto the Airport Ground Lease Agreement (extension). BUDGET: No impact. RECOMMENDATION: Move to approve a resolution ratifying the acceptance and approval of the 2019 assignment of the ground lease from Erik Zarones to Sheradon R. Carter and attaching to said assignment a copy of the 2018 Airport Ground Lease Agreement (extension).