DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT: Assignment/Assumption of Aviation Training Lease
RECOMMENDATION
That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.
SUMMARY
Jerry Hoffman, the owner of Aviation Training, Inc., (Aviation Training), entered into a lease with the City of Hayward in 1975 for the leasehold located at 21593 Skywest Drive. The lease expired in 2015 and was extended to 2047 shortly thereafter. At this time, Mr. Hoffman has requested that leasehold rights be conveyed from Aviation Training to Savage Aero, whose principal is Daniel Umanzor.
If this request is approved by the CAC, the item will be tentatively placed on the Council agenda for June 7, 2022.
BACKGROUND AND DISCUSSION
Jerry Hoffman entered into a 40-year commercial lease agreement with the Hayward Executive Airport (Airport) on September 1, 1975, for the parcel located at 21593 Skywest Drive (Attachment II). The lease expired on August 31, 2015, and was subsequently renewed in 2016. The leased area contains 50,018 square feet of space, and a hangar building with an attached office area.
Jerry Hoffman proposes to sell his leasehold interest to Savage Aero, subject to Council approval as outlined in the attached information (Attachment III). All other terms of the lease will remain unchanged.
ECONOMIC IMPACT
No economic impact is associated with this administrative change to the lease.
FISCAL IMPACT
No fiscal impact is associated with this action above and beyond the existing rent amount, which is approximately $22,000 per year.
STRATEGIC ROADMAP
This agenda item pertains to development at the airport and does not directly relate to the Council’s Strategic Roadmap.
SUSTAINABILITY FEATURES
No sustainability features are associated with this report.
PUBLIC CONTACT
The agenda and staff report for this item have been posted on the City’s website and distributed to interested parties.
NEXT STEPS
If recommended by the CAC, this item will be forwarded to Council for consideration on June 7, 2022.
Prepared by: Doug McNeeley, Airport Manager
Recommended by: Alex Ameri, Director of Public Works
Approved by:
_________________________________
Kelly McAdoo, City Manager