cover
TO: Mayor Richard C. Irvin
FROM: Steve Andras, P.E., Acting Airport Manager
DATE: December 2, 2021
SUBJECT:
An ordinance authorizing the execution of a lease amendment between the City of Aurora and Suburban Properties, LLC for two hangars located at the Aurora Municipal Airport.
PURPOSE:
To obtain City Council approval authorizing an amended lease which will combine the terms of the two existing leases into a single amended lease for a twenty years between the City of Aurora and Suburban Properties, LLC.
BACKGROUND:
Presently, there are two leases for the hangars located at 43W514 and 43W516 U.S. Route 30 at the Aurora Municipal Airport. Both leases are between the City of Aurora and Suburban Properties, LLC. The original leases were with a different tenant, and were assigned to Suburban properties under ordinance O06-33 on April 25, 2006 for building 43W514 and ordinance O06-18 on March 28, 2006 for building 43W516. Both leases assignments are attached for your reference.
DISCUSSION:
Suburban Properties, LLC is in the process of refinancing both hangars and has requested an amendment to each lease to extend the current term (see attached email). Tim Ryan of Suburban Properties, LLC has indicated that there are less than 20 years remaining on both original leases and that it is difficult to secure financing without a minimum of a 20 year lease.
IMPACT STATEMENT:
Approving an amended lease should have little impact to the City of Aurora. Suburban Properties, LLC is in good standing with the City of Aurora.
RECOMMENDATIONS:
We request that the Building, Zoning and Economic Development Committee make a favorable recommendation to the Committee of the Whole for the approval of this amended agreement.
cc: Building, Zoning and Economic Development Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Authorizing the Execution of an Amended Lease Between the City of Aurora and Suburban Properties, LLC. for two hangars at the Aurora Airport.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora owns and operates the Aurora Municipal Airport; and
WHEREAS, there presently exists, with reference to said Airport, two leases between the City of Aurora and Suburban Properties LLC. which were originally executed as lease assignments under ordinance O06-18 on March 28, 2006 and under ordinance O06-33 April 25, 2006; and
WHEREAS, Suburban Properties, LLC. has requested an amendment to both leases to provide a longer term for financing purposes; and
WHEREAS, a copy of the proposed amended lease is attached as Exhibit A..
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: the City is hereby authorized to enter into the Amended Lease attached herein as "Exhibit A".