DATE: September 21, 2021
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute a New Lease Agreement with Hayward Hangars, LLC. for Property Located at the Hayward Executive Airport
RECOMMENDATION
That the Council adopts the attached resolution (Attachment II) authorizing the City Manager to execute an agreement with Hayward Hangars, LLC for the lease of Airport property.
SUMMARY
Hayward Hangars, LLC has been a commercial tenant at the Hayward Executive Airport (HWD) since 2006 and provides storage space for general aviation aircraft. The initial lease with Hayward Hangars called for the construction of two hangars (hangar buildings A and B). Due to issues raised by the Federal Aviation Administration (FAA), Hayward Hangars has experienced delays in constructing hangar building A. Because Hayward Hangars has not yet had the benefit of rental income from hangar building A during the past several years, and since it will now cost more to construct the building, the company is requesting that the City enter into a new ground lease that will have a longer term.
The proposed ground lease agreement has similar terms and conditions with changes regarding the effective date, length of term, and monthly rent.
Council Airport Committee Review
This new lease with Hayward Hangars was recommended for Council approval by the Council Airport Committee (CAC) during their meeting held on July 15, 2021.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Leasehold Map
Attachment IV Hangar Location