12 - LEASE REASSIGNMENT AT COX FIELD

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Item No. 12 memorandum TO: City Council John Godwin, City Manager FROM: Shawn Napier, P.E., Director of Engineering, Planning & Development SUBJECT: LEASE REASSIGNMENT AT COX FIELD DATE: June 1, 2015 BACKGROUND: Mr. Bill Booth signed a ground lease agreement for a private hangar in June 2009. The ground lease agreement was for a 30 -year period and will expire on June 21, 2039. The hanger that Mr. Booth constructed is referred to as hanger J and is located at the very northeast edge of the hangar complex. The lease agreement was reassigned from Bill Booth to Gene Svoboda (General Partner of Magnum Performance, L.P.) in February 2012. Mr. Gene Svoboda passed away and his wife Mrs. Lynne E. Svoboda is the independent executive of the Gene Svoboda Estate. The Airport Advisory Board voted to approve the reassignment of the ground lease from Mrs. Lynne E. Svoboda to Mr. Eric Zarones by a vote of 4 -0 on May 28th, 2015. STATUS OF ISSUE: Mr. Eric Zarones would like to purchase the building from the estate of Gene Svoboda. The original lease agreement will not change. BUDGET: N/A RECOMMENDATION: Reassign the hangar ground lease agreement from Lynne E. Svoboda to Eric Zarones.