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File #: ID 24-1545    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 11/4/2024 In control: City Council
On agenda: 12/5/2024 Final action:
Title: Approve an Early Termination of Lease with Air Land and Storage Investors, a Limited Partnership, at Fresno Yosemite International Airport (FAT) to terminate the Land Lease approximately 20 years early. (Council District 4)
Sponsors: Airports Department
Attachments: 1. 24-1545 Early Termination of Lease with Air Land and Storage Investors
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REPORT TO THE CITY COUNCIL

FROM: HENRY THOMPSON, Director of Aviation
Airports Department

THROUGH: BRITTNEY VERROS, Airports Property Supervisor
Airports Department

BY: MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department


SUBJECT
Title
Approve an Early Termination of Lease with Air Land and Storage Investors, a Limited Partnership, at Fresno Yosemite International Airport (FAT) to terminate the Land Lease approximately 20 years early. (Council District 4)

Body
RECOMMENDATION

Staff recommends that the City Council (Council) authorize the Director of Aviation, or designee, to execute this Early Termination of Lease with Air Land & Storage Investors, a Limited Partnership, to terminate the Land Lease of +/- 2.19 acres, approximately 20 years early due to death of original Managing Member and dissolution of the partnership entity.

EXECUTIVE SUMMARY

Atwood Grove Construction Company, Inc. entered into a Lease with the City in 1977. That Lease was then partially assigned to Air Land & Storage Investors for Lots 16 and 17, consisting of approximately 2.19 acres. Air Land and Storage Investors (Lessee) then entered into a direct Land Lease with the City on August 1, 2007. In the time since the execution of aforementioned Leases, neither Atwood Grove Construction Company nor Air Land & Storage Investors made any improvements on or to the land. It is not in the City's best interest to enforce the full term of the Lease. The City of Fresno (City) wishes to retake the parcel and explore options for future development.

BACKGROUND

Atwood Grove Construction Company, Inc. entered into a Lease with the City in 1977. That Lease was subsequently replaced with the agreement between Air Land & Storage Investors and City of Fresno on August 1, 2007. That Agreement was set to expire on December 31, 2044. Ultimately, Lessee's plans to develop the land did not materialize. On or around November 30, 2023, Lessee contacted City to advise of their ...

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