REPORT TO THE CITY COUNCIL
FROM: MARK THORPE, Director of Aviation
Airports Department
BY: JOSHUA CASTELLANO-GONZALEZ, Assistant Director of Finance and Administration
Airports Department
MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
SUBJECT
Title
Approve the Third Amendment to the Airport Lease Agreement with United Parcel Services, Inc., for use of the cargo ramp located at the Fresno Air Terminal, extending the term for six (6) months, through June 30, 2027, and land rent revenue generated by this lease extension is approximately $26,034.96 (Council District 4)
Body
RECOMMENDATION
Staff recommends Council Approve the Third Amendment to Airport Lease Agreement with United Parcel Services, Inc., for use of the cargo ramp located at the Fresno Air Terminal, extending the term for six (6) months, through June 30, 2027, and land rent revenue generated by this lease extension is approximately $26,034.96, and authorize the City Manager, or designee, to execute all documents related to this amendment.
EXECUTIVE SUMMARY
Lessee’s current eighteen-year Lease at FAT will expire on December 31, 2026. Lessee has been at its current location, running its air cargo operations, since August 1, 2008. The Third Amendment will extend the term through June 30, 2027, which coincides with the date all signatory airlines’ initial terms of their Airport Use and Lease Agreements (AUA) at FAT are set to expire. As Lessee’s landing fees (how the fees are calculated) are tied to the rate calculation(s) expressed in FAT’s AUAs, the intent is to merge Lessee’s land rent into a future AUA. This proposed Third Amendment would allow Lessee to continue operating at FAT, without any disruption to its cargo operations, potentially through June 30, 2027, while Lessor and Lessee negotiate a new AUA, which will coincide with all signatory airlines’ extending their existing AUAs.
BACKGROUND
Lessee currently runs an air cargo operation that supports Fresno an...
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