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
BRITTNEY VERROS, Airports Property Supervisor
Airports Department
SUBJECT
Title
Actions related to the Second Amendment to the Ground Lease Agreement between the City of Fresno and SkyWest Airlines, Inc., for hangar facility and ramp space at Fresno Yosemite International Airport (FAT) (Council District 4)
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines
2. Approve the Second Amendment to the Ground Lease Agreement with SkyWest Airlines, Inc. (SkyWest). The potential revenue generated by this Agreement is $8,369,791.60 plus annual CPI adjustments over the full term
Body
RECOMMENDATION
Staff recommends that City Council 1) adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines and 2) approve the Second Amendment to the Ground Lease Agreement (Amendment) with SkyWest Airlines, Inc.
EXECUTIVE SUMMARY
SkyWest has continuously rented and operated a regional maintenance hub at FAT since 1998, when they acquired previous tenant's operations. The current lease was executed September 1, 2016 with an initial term of three (3) years and seven (7) one-year extensions for an end date of August 31, 2026. SkyWest has exhausted all of the options in the original Agreement. The parties are moving forward with negotiating a new Agreement but have not completed it yet. Therefore, both parties wish to extend the original Agreement on a year-to-year basis for no more than ten (10) years, to allow for the negotiation of a new Agreement. Upon completion of the new Agreement and approval by City Council, this Agreement will terminate and the other Agreement will take precedence...
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