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TO: The Honorable Mayor and City Council
FROM: The Law Department
DATE: November 21, 2018
SUBJECT:
An Ordinance authorizing the assignment of a lease between the City of Aurora and Arr-ow Aviation, Inc. to ALB Properties, Inc., the amendment of said lease to include the terms and conditions set forth in the lease authorized by Ordinance O18-087, adopted October 23, 2018., and the cancellation of the lease authorized by Ordinance O18-087.
PURPOSE:
To facilitate the assignment of a leasehold interest in a hangar located at Aurora Municipal Airport (Airport) from one business to another.
BACKGROUND:
On October 23, 2018, the City Council authorized a lease between ALB Properties, Inc. (ALB) at ALB's request for a hangar at the Airport currently leased to Arr-ow Aviation, Inc. (Arr-ow). Arr-ow is in selling its interests at the airport to ALB. ALB initially requested a new lease with the City rather than an assignment of the City's existing lease with Arr-ow.
Shortly after the Council's approval of Ordinance O18-087, counsel for the businesses informed the City that because Arr-ow had two sub-lessees for space at the hangar, the mechanics of the transaction would be greatly simplified if Arr-ow was allowed to assign its lease to ALB. The City's existing lease with Arr-ow expressly provides that Arr-ow may assign the lease with the City's consent. Once the transaction is closed and the lease assigned to ALB, ALB will agree to amend the former Arr-ow lease to reflect the terms and conditions that were part of the lease authorized by O18-087. The City would then cancel the October 23, 2018 lease with ALB leaving the City and ALB in the same position they intended to be at the onset of this process.
DISCUSSION:
While the above explanation may be confusing, the parties are essentially asking the Council to assist them in taking an alternate path to the same destination. While the path the Council authorized by O18-087 was what the parties initially wanted, the...
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