COUNCIL
COMMUNICATION
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DATE: 4-7-03 |
SUBJECT: FINAL READING OF ORDINANCE NO. 2003-O-091 Authorizing the
City Manager to execute an Assignment of Lease between the City of Laredo, as
Lessor, and International Bank of Commerce (“IBOC”) and Sanchez O’Brien Oil
and Gas Corp., A Joint Venture, as Tenant/Assignor, for approximately 26,965
sq. ft. of land, including the approximate 12,000 square feet constituting
the west section of Hangar No. 1309 located at the Laredo International
Airport authorized by Ordinance No. 93-O-029 dated March 1, 1993, and as
amended on January 5, 1998, by Ordinance No. 97-O-323. Said Assignment will
be to Labata Services, as Assignee.
All other terms and conditions remain unchanged and in effect; and contingent
upon approval of the Assignment of Lease, further authorizing the City
Manager to execute a Release of Tenant’s Liability, for the benefit of
International Bank of Commerce and Sanchez O’Brien Oil and Gas Corporation, A
Joint Venture; providing for an
effective date. |
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INITIATED
BY: Cynthia
Collazo Assistant City
Manager |
STAFF
SOURCE: Jose L.
Flores Airport
Director |
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PREVIOUS
COUNCIL ACTION: On March 24,
2003, Ordinance was introduced by City Council, and Staff was instructed to
proceed. |
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BACKGROUND: On March 1, 1993, City Council
approved through Ordinance No. 93-O-029 a lease with International Bank of
Commerce and Sanchez O’Brien Oil & Gas Corporation, a Joint Venture, for
the approximate 26,965 square feet of land which includes the approximate
12,000 square feet of the west one-third of Hangar No. 1309. This lease was further amended on January
5, 1998, by Ordinance No. 97-O-323 in order to allow Lessee to sublease said
premises. In 1993, IBC / SOB made substantial
improvements to Hanger No. 1309 (west section). Now, International Bank of Commerce
and Sanchez O’Brien Oil & Gas Corporation, a Joint Venture, wish to
assign said lease to Labata Services, a Fixed Based Operation, and Labata
Services wishes to accept said assignment. The
lease provides that the monthly rent be adjusted annually and that the rent
also be adjusted at the tenth (10th) year anniversary being March
1, 2003. An appraisal is being done to adjust the rent effective March 1,
2003. |
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FINANCIAL
IMPACT: Aeronautical
Building Revenue Account
242-0000-361-1086 Current Monthly Rent
$1,513.16 or $0.126 Per Square Foot Fair Market Rent Appraisal will
determine the monthly rent effective March 1, 2003. |
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COMMITTEE
RECOMMENDATION: The
Airport Advisory Committee recommends approval. |
STAFF
RECOMMENDATION: That
the City Manager be authorized to execute an Assignment of Lease and the
Release of Tenant’s Liability. |
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ORDINANCE NO.
2003-O-091
AUTHORIZING THE CITY MANAGER TO EXECUTE AN ASSIGNMENT OF LEASE BETWEEN THE CITY OF LAREDO, AS LESSOR, AND INTERNATIONAL BANK OF COMMERCE (“IBOC”) AND SANCHEZ O’BRIEN OIL AND GAS CORP., A JOINT VENTURE, AS TENANT/ASSIGNOR, FOR APPROXIMATELY 26,965 SQ. FT. OF LAND, INCLUDING THE APPROXIMATE 12,000 SQUARE FEET CONSTITUTING THE WEST SECTION OF HANGAR NO. 1309 LOCATED AT THE LAREDO INTERNATIONAL AIRPORT AUTHORIZED BY ORDINANCE NO. 93-O-029 DATED MARCH 1, 1993, AND AS AMENDED ON JANUARY 5, 1998, BY ORDINANCE NO. 97-O-323. SAID ASSIGNMENT WILL BE TO LABATA SERVICES, AS ASSIGNEE. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND IN EFFECT; AND CONTINGENT UPON APPROVAL OF THE ASSIGNMENT OF LEASE, FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A RELEASE OF TENANT’S LIABILITY, FOR THE BENEFIT OF INTERNATIONAL BANK OF COMMERCE AND SANCHEZ O’BRIEN OIL AND GAS CORPORATION, A JOINT VENTURE; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,
the Airport Director recommends that the City Council approve the proposed Assignment
of Lease between the City of Laredo, as LESSOR, and International Bank of
Commerce and Sanchez O’Brien Oil and Gas Corporation, a joint venture, as
Assignor, for approximately 26,965 square feet of land which includes the
approximate 12,000 square feet constituting the west section of Hangar No. 1309
located at the Laredo International Airport authorized by Ordinance No.
93-O-029 dated March 1, 1993, and as amended on January 5, 1998, authorized by
Ordinance No. 97-O-323 and assigning the lease to Labata Services, as Assignee,
and contingent upon approval of the Assignment of Lease, execute a Release of Tenant’s
Liability, for the benefit of International Bank of Commerce and Sanchez O’Brien
Oil and Gas Corporation, a Joint Venture, 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,
the Airport Advisory Committee finds that said assignment of lease is in the
best interest of the Airport and recommends that the City Council approve the
proposed 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 between the City of Laredo, as LESSOR,
and International Bank of Commerce and
Sanchez O’Brien Oil and Gas Corporation, a joint
venture, as Assignor, for approximately 26,965 square feet of land which
includes the approximate 12,000 square feet constituting the west section of
Hangar No. 1309 located at the Laredo International Airport authorized by
Ordinance No. 93-O-029 dated March 1, 1993, and as amended on January 5, 1998,
authorized by Ordinance No. 97-O-323 and assigning the lease to Labata Services,
as Assignee, and contingent upon approval of the Assignment of Lease, execute a
Release of Tenant’s Liability, for the benefit of International Bank of Commerce
and Sanchez O’Brien Oil and Gas Corporation, a Joint Venture, a copy of which Assignment
of Lease 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
________________, 2003.
______________________
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