J:\FYI\Tenant Files\Air Land and Storage Investors (Atwood Grove)\Legal\Air Land and Storage Investors Early Termination of Land Lease.clean(246441.1).docx
246441v1
EARLY TERMINATION OF LEASE
AT FRESNO YOSEMITE INTERNATIONAL AIRPORT
Issued By
CITY OF FRESNO, CALIFORNIA
A Municipal Corporation
To
AIR LAND AND STORAGE INVESTORS,
A Limited Partnership
1 This Early Termination of Ground Lease Agreement (Termination), is made and entered into as of the 1st day of November 2024, by the City of Fresno, California, a municipal corporation (City), and Air Land and Storage Investors, a Limited Partnership, (Air Land and Storage or Lessee).
RECITALS
WHEREAS, City owns and operates Fresno Yosemite International Airport, (FAT) which is located in the City of Fresno, County of Fresno, State of California (Airport); and
WHEREAS, Lessee and City (each a Party; collectively the Parties) entered into a ground lease dated August 1, 2007 (Lease) for real property described as Lots 16 and 17 of Tract No. 2553, Air-Fresno Business & Industrial Park, in the City of Fresno, Fresno County, California, according to the map thereof recorded on Volume 29 of Plats at page 1, Fresno County Records (Property); and
WHEREAS, Lessee has not made any improvements on or to the Property; and
WHEREAS, the Lease matures on December 31, 2044; and
WHEREAS, on or around November 30, 2023, the Lessee notified City of the death of the managing member of Lessee and its intent to dissolve the partnership entity; and
WHEREAS, on November 30, 2023, Lessee notified City that it desires to terminate the Lease early; and
WHEREAS, as of December 30, 2023, Lessee was delinquent $21,452.73 in quarterly rent payments; and
WHEREAS, the Parties desire and agree to terminate the Lease early and settle the delinquent rents.;
NOW, THEREFORE, for and in consideration of the foregoing, the mutual covenants and promises hereinafter set forth and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties intending to be legally bound, hereby agree as follows:
1. The above Recitals form a material part of this Agreement and are incorporated herein by reference as though set forth in full herein.
2. The City accepts Lessee’s request to terminate the Lease early, before the December 31, 2044, maturity date. A true and correct copy of the Lease is attached hereto as Exhibit A.
3. The City agrees to stop accrual of rents on December 30, 2023.
2 4. On or about June 15, 2024, Lessee paid past due rents in the amount of $21,452.73 pursuant to the terms of the Payment Arrangement entered into on December 21, 2023, attached hereto and incorporated herein as Exhibit B.
5. The Parties agree that in exchange for the June 15, 2024, payment of the past due rents, the Lease shall terminate early, effective on the last date of the final signature of all Parties to this Agreement.
6. This document is the complete agreement regarding early termination of the original Ground Lease. Any other promises made by Lessee or City, oral or written, with regard to the termination of the Lease are replaced by this Agreement.
[Signature on following page]
3 IN WITNESS WHEREOF , Lessee has caused this Early Termination of Lease to be executed by its duly authorized officer, and City has caused the same to be executed by its duly authorized person(s)/officer(s), all as of the day and year first above written.
CITY OF FRESNO, CALIFORNIA
A Municipal Corporation
By: ____________________________
Henry Thompson, A.A.E.,C.A.E.,
IAP
Director of Aviation
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:_____________________________
Brandon M. Collet Date
Assistant City Attorney
ATTEST:
TODD STERMER, CMC
City Clerk
By:_____________________________
Date
Deputy
Address for Notice:
City of Fresno
Airports Department
4995 E. Clinton Way
Fresno, CA 93727
AIR LAND AND STORAGE INVESTORS,
LP
A California Limited Partnership
By: ___________________________
N a m e :
Title: ____________________________
(Managing General Partner)
By: ___________________________
N a m e :
Title: _________________________
(CFO, Treasurer, Secretary or
Assistant Secretary)
Address for Notice:
Air Land and Storage Investors, LP
425 Las Palmas Drive
Santa Barbara, CA 93110
Attachments:
Exhibit A – Original Ground Lease
Exhibit B – Parcel Map
Exhibit C – Fully Executed Payment Arrangement
EXHIBIT “A”
EXHIBIT “”
FRESNO YOSEMITE INTERNATIONAL AIRPORT
PARCEL LEASE SITE MA P
GROVE INDUSTRIAL DR
ANDERSEN AVE
APN 49418020T
2880 N GROVE INDUSTRIAL DR
± 2.19 ACRES
WINERY AVE
EXHIBIT “”
December 21, 2023
Peter Goodell
Air Land & Storage Investors, LP
425 Las Palmas Drive
Santa Barbara, CA 93110
E-mail: pwgoodell@a o l.com
RE: EARLY TERMINATION OF LEASE
Dear Mr. Goodell:
Thank you for your active communication with our department regarding the lease held by Air Land & Storage Investors, LP. Per our discussions, you have indicated an interest in surrendering your complete right, title and interest in the lease dated August 1, 2007, between Air Land & Storage Investors, LP and the City of Fresno covering undeveloped land located at the corner of Anderson Avenue and North Grove Indus- trial Avenue, just south of Fresno Yosemite International Airport (Lease).
In this request to terminate the Lease early, I assume you would also like a complete release of any and all liabilities that may have arisen under the Lease from its incep- tion to the present day.
The Airports Department of the City is agreeable to accepting such surrender and to providing such release, provided that the City Council authorizes same. Additionally, in order for the lease to be terminated, effective June 30, 2024, all past due rents must be paid in full no later than June 15, 2024. If Air Land & Storage fails to make the payments, the agreement will not be terminated and term will continue to run and all back rents, both unpaid and from January 2024 forward will be reinstated.
A draft of the Payment Plan is enclosed for your review and acceptance.
If you wish to proceed with the early termination, please countersign a copy of this letter in the space provided AND obtain the counter signatures of any and all other persons who may have any legally enforceable interest in the Lease and return that copy to me.
Immediately after receiving the countersigned letter, I will draft an appropriate item for consideration by the City Council at the next available meeting of the Council. I will make June 30, 2024, the effective date of the surrender .
Except as specifically mentioned herein, the Agreement shall be and remain in full force and effect.
This Side Letter will be effective upon signature of all parties.
Please note that nothing in this notice waives or limits City’s rights and remedies in this matter.
Sincerely,
Melissa Garza-Perry
Airports Properties Manager
City of Fresno – Airports Department
ACCEPTED:
The City of Fresno, California
Air Land & Storage Investors, LP
By:
By:
Henry Thompson, A.A.E., C.A.E., IAP
Director of Aviation
Name:
Date: Title:
Date:
Enclosure: Payment Plan
cc: Henry Thompson, A.A.E., CAE, IAP, Director of Aviation Francisco Partida, C.M., USAP, Assistant Director of Aviation Brittney Verros, Airports Property Supervisor
Russell G. Smith, Property Management – via email only
Type Trans Date Due Date Accounting Period Activity Period AIR-60605 BLIN 03/14/2023 04/01/2023 April, 2023 April, 2023 $6,309.63 $6,309.63 Quarterly Rent - Lots 16 &
17 of Tract 2553
AIR-61813 BLIN 07/13/2023 08/12/2023 July, 2023 January, 2023 $630.96 $6,940.59 Quarterly Rent - Lots 16 &
17 of Tract 2553
($6,309.63) Less January 2023 rent
previously billed on AIR-
59803
AIR-61822 BLIN 07/13/2023 08/12/2023 July, 2023 April, 2023 $630.96
$6,940.59 Quarterly Rent - Lots 16 &
17 of Tract 2553
($6,309.63) Less April 2023 rent
previously billed on AIR-
60605
AIR-61831 BLIN 07/13/2023 08/12/2023 July, 2023 July, 2023 $6,940.59
$6,940.59 Quarterly Rent - Lots 16 &
17 of Tract 2553
AIR-62294 BLIN 09/08/2023 10/01/2023 October, 2023 October, 2023 $6,940.59 $6,940.59 Quarterly Rent - Lots 16 &
17 of Tract 2553
Air Land & Storage Investors Total:
Report Total:
FIXED - F
FIXED - F
FIXED - F
FIXED - F
FIXED - F
Air Land & Storage Investors
Fresno Yosemite International Airport
Customer Trial Balance - December, 2023
Item Number Description Orig.Amount
13-Dec-2023 10:13 AM
15-Jan-24 15-Feb-24 15-Mar-24 15-Apr-24 15-May-24 15-Jun-24 Balance Payment 1 Payment 2 Payment 3 Payment 4 Payment 5 Payment 6 Inv Bal $6,309.63 $3,575.45 $2,734.18 $0.00
$630.96 $630.96 $0.00
$630.96 $210.31 $420.65 $0.00
$6,940.59 $3,154.80 $1,273.65 $2,512.14 $0.00
$6,940.59 $2,301.80 $1,063.31 $3,575.48 $0.00
$3,575.45 $3,575.45 $3,575.45 $3,575.45 $3,575.45 $3,575.48 $0.00$21,452.73 $21,452.73
13-Dec-2023 10:13 AM