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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 5/18/2021
District B
Item Creation Date: 4/29/2021
HAS - Amendment No. 4 to Lease Agreement with Aero Houston Central, LP at IAH
Agenda Item#: 10.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing Amendment No. 4 to Lease Agreement between City of Houston and AERO HOUSTON CENTRAL, LP, for certain premises at George Bush Intercontinental Airport/Houston (IAH); providing a maximum contract amount - $51,706.45 - Revenue - DISTRICT B - JACKSON |
| | | | | | | | Background:
RECOMMENDATION:
Enact an Ordinance approving and authorizing Amendment No. 4 to a Lease Agreement with Aero Houston Central, LP for certain premises at George Bush Intercontinental Airport/Houston (IAH) and setting a maximum contract amount of $51,706.45.
SPECIFIC EXPLANATION:
On November 30, 1982, City Council approved a Lease Agreement with The King Interests, Inc. for 151,056 square feet of land in the central cargo area of George Bush Intercontinental Airport/Houston (“IAH”) for the business of conducting air and ground transportation for hire of cargo and freight. Aero Houston Central, LP ("Aero"), is the current successor-in-interest and the Lease Agreement has been amended three times.
On May 24, 2017, City Council approved Amendment No. 3 to enable relocation of HAS fleet maintenance operations, necessitated by United Airline’s technical operations center development, to Aero’s Building G premises until replacement facilities could be built. The term was for two years with subsequent month-to-month extensions. Replacement premises for HAS fleet maintenance are currently scheduled to be completed by September 30, 2021. Amendment No. 4 will enable HAS fleet maintenance to continue operating at Aero’s Building G premises for 4 additional months.
The pertinent terms of Amendment No. 4 are as follows:
| Premises: |
10,800 square feet of space in Central Cargo Building G – Suite 300 at 18201 Viscount (same as present).
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| Use: |
Premises shall be used and occupied solely for the servicing of vehicles owned and operated by HAS (same as present).
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| Use Term: |
City's use of the Premises on a month-to-month basis shall be allowed to continue until September 30, 2021, terminable by either party upon thirty (30) days’ advance written notice to the other party.
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| Monthly Use Fee: |
$13.70 per square foot per year. Based upon the square footage of the Premises, deemed to be 10,800 square feet, the Monthly Use Fee shall be $12,330.00 per month. Credits against the rent Aero owes the City are currently being used but are set to be exhausted near the end of May 2021; after such time, payments will be issued to Aero not to exceed the maximum contract amount of $51,706.45.
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Fiscal Note:
Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
Director’s Signature:
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Mario C. Diaz
Houston Airport System
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ESTIMATED SPENDING AUTHORITY
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DEPARTMENT
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FY 2021
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OUT YEARS
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TOTAL
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Houston Airport System
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$14,716.45
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$36,990.00
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$51,706.45
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| | | | | | | | Prior Council Action:
11/30/82 (O) 82-1881
09/26/01 (O) 2001-876
03/05/14 (O) 2014-178
8/13/14 (O) 2014-767
5/24/17 (O) 2017-0355 |
| | | | | | | | Amount and Source of Funding:
$51,706.45
HAS Revenue Fund
Fund 8001 |
| | | | | | | | Contact Information:
Todd Curry 281/233-1896
Molly Waits 281/233-1860 |
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