COUNCIL COMMUNICATION

DATE:

 

11-4-02

 

 

 

 

SUBJECT:   FINAL READING OF ORDINANCE NO. 2002-O-285

Authorizing the City Manager to execute an Assignment of lease of that Lease agreement entered into between the City of Laredo, as Lessor, and FedJones Laredo, LLC, as Lessee, by Ordinance No. 2001-0-042 dated February 20, 2001.  Said Lease Assignment is to Fedlaredo Parntership, LP, a Pennsylvania limited partnership, as Assignee, for approximately 2.82 acres at the Laredo International Airport; providing for an effective date.

 

 

INITIATED BY:  Cynthia Collazo

                           Assistant City Manager

 

 

STAFF SOURCE:  Jose L. Flores

                               Airport Director

 

PREVIOUS COUNCIL ACTION:   On October 21, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

 

BACKGROUND:     

 

FedJones Laredo, LLC leased approximately 2.82 acres located on Tract 8 of the Subdivision Plat of the Laredo International Airport Passenger Terminal Subdivision, which is directly north of the passenger terminal on Bob Bullock Loop.  Lessee constructed an approximate 33,500 square foot building which in turn was subleased to Federal Express.  Federal Express uses the premises for retail sale of time-definitive delivery services.

 

The lease agreement allows for assignment. 

 

Lease term ends on February 28, 2041.  Current monthly rent is $1,783.76 and will be adjusted annually according to changes in the Consumer Price Index and further adjusted at every 10th anniversary by Fair Market Value appraisal.

 

FedJones Laredo now wishes to assign its lease to Fedlaredo Partnership, LP and is requesting approval from the Laredo City Council.

 

FINANCIAL IMPACT:  

 

242-0000-361-2070  Aeronautical Land Rent

 

COMMITTEE RECOMMENDATION:  The Airport Advisory Committee recommends approval. 

 

 

 

STAFF RECOMMENDATION: That the City Manager be authorized to execute said Assignment of Lease to Fedlaredo Partnership, LP.

 

 

 

ORDINANCE NO. 2002-O-285

 

 

 

AUTHORIZING THE CITY MANAGER TO EXECUTE AN ASSIGNMENT OF LEASE OF THAT LEASE AGREEMENT ENTERED INTO BETWEEN THE CITY OF LAREDO, AS LESSOR, AND FEDJONES LAREDO, LLC, AS LESSEE, BY ORDINANCE NO. 2001-0-042 DATED FEBRUARY 20, 2001.  SAID LEASE ASSIGNMENT IS TO FEDLAREDO PARNTERSHIP, LP, A PENNSYLVANIA LIMITED PARTNERSHIP, AS ASSIGNEE, FOR APPROXIMATELY 2.82 ACRES AT THE LAREDO INTERNATIONAL AIRPORT; PROVIDING FOR AN EFFECTIVE DATE.

 

 

            WHEREAS, the Airport Director recommends that the City Council approve the proposed Assignment of Lease of that Lease entered between the City of Laredo, as Lessor, and FedJones Laredo, LLC, as Lessee, by Ordinance No. 2001-0-042 dated February 20, 2001, for approximately 2.82 acres located on Tract 8 of the Laredo International Airport, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

 

            WHEREAS, said Assignment of Lease is to Fedlaredo Partnership, LP, a Pennsylvania limited partnership, as Assignee; and

 

            WHEREAS, the Airport Advisory Committee finds that said Assignment of lase is in the best interest of the Airport and recommends that the City Council approve the Assignment of Lease; and

 

            WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1:         The City Manager be hereby authorized to execute an Assignment of Lease of that Lease entered between the City of Laredo, as Lessor, and FedJones Laredo, LLC, as Lessee, by Ordinance No. 2001-0-042 dated February 20, 2001, for approximately 2.82 acres located on Tract 8 of the Laredo International Airport. Said Assignment of Lease is to Fedlaredo Partnership, LP, a Pennsylvania limited partnership, as Assignee, a copy of which is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

 

Section 2:         This Ordinance shall become effective upon passage hereof.

 

            PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2002.

 

 

 

 

________________________

ELIZABETH G. FLORES

MAYOR

 

ATTEST:

 

________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

 

 

BY:_______________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY