DATE: September 19, 2019
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT
Title
Second Amendment to the Existing Ground Lease with Mahabal Hospitality, LLC.
End
RECOMMENDATION
Recommendation
That the Council Airport Committee (CAC) reviews this report and recommends approval by Council.
End
SUMMARY
In November 2017, the City entered into a lease agreement with a developer to build two new hotels on vacant airport parcels. Plans and specifications for each site are currently under final review and construction on the Home2Suites hotel on Hesperian Boulevard is expected to commence shortly.
Prior to construction of the first hotel, the FAA requested additional information related to its siting and proximity to protected airspace. A seven-month delay in approval of the revised Airport Layout Plan (ALP) and property release documents by the FAA caused construction of the Hyatt Place development to be pushed back to 2020, which is outside the lease-mandated two-year construction timeline of no later than November 2019. Accordingly, an amendment is required that would extend the Hyatt Place construction period from November 2019 to November 2020.
If this action is approved by the Committee, the item will be tentatively placed on the Council agenda for October 1, 2019.
ATTACHMENTS
Attachment I Staff Report
Attachment II Mahabal (Hyatt) Parcel Map
Attachment III Ramesta (Home2Suites) Parcel Map