DATE: July 19, 2016
TO: Mayor and City Council
FROM: Director Public Works
SUBJECT
Title
Resolution Authorizing the City Manager to Negotiate and Execute an Amendment to the Ground Lease with Meridian Aviation, Inc.
End
RECOMMENDATION
Recommendation
That Council approves the attached resolution authorizing the City Manager to negotiate and execute an Amendment to the Ground Lease with Meridian Aviation, Inc. (Meridian).
Body
BACKGROUND
In July 2012, discussion with Meridian began about the establishment of a Fixed Base Operation (FBO) at Hayward Executive Airport. On October 31, 2013, the Council Airport Committee (CAC) reviewed the company's proposal and recommended that an item be forwarded to Council for action. On November 12, 2013, Council authorized the City Manager to negotiate and execute a lease with Meridian for approximately fifteen acres on the south side of the airport, and a ground lease was executed with Meridian on December 5, 2013.
DISCUSSION
Meridian is developing their site in three phases, which will allow for orderly expansion as customer demand increases. Phase I is 7.23 acres in size; and plans include the construction of a 122,500 square foot aircraft parking apron, one 30,000 square foot aircraft storage hangar, and an attached 6,000 square foot passenger terminal. Construction work on the hangar and terminal in Phase I has begun.
Meridian and their architect have determined that additional space is required to construct the necessary facilities. Specifically, an adjoining 18,130 square foot area is required to contain a private service road on the east side of the Meridian leasehold and provide room to safely maneuver transport trucks for fuel deliveries. An adjoining area of 10,542 square feet is also necessary to accommodate future phases of development to the west. The total additional area totals 28,672 square feet. This increases Phase I of the Meridian le...
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