City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 6, 2026 FROM: CITY MANAGER – AIRPORT WARD: 3 SUBJECT: RIVERSIDE AIRPORT LEASE AGREEMENT WITH CAVU AERO SERVICE, LLC FOR ESTIMATED REVENUE OF $245,688 FOR A FIVE-YEAR TERM COMMENCING JANUARY 2, 2026, AND ENDING JANUARY 2, 2031, WITH ONE ADDITIONAL FIVE-YEAR OPTION TO EXTEND UPON MUTUAL WRITTEN CONSENT.
ISSUE:
Consider approving a Riverside Airport Lease Agreement with CAVU Aero Service, LLC for a five-year term commencing January 2, 2026, and ending January 2, 2031, with one additional five-year option to extend upon mutual written consent.
RECOMMENDATIONS:
That the City Council:
Approve a Riverside Airport Lease Agreement with CAVU Aero Service, for estimated revenue of $245,688 for a five-year term commencing January 2, 2026, and ending January 2, 2031, with one additional five-year option to extend upon mutual written consent; and Authorize the City Manager, or designee, to execute the Second Amendment Riverside Airport Lease Agreement with CAVU Aero Service, including making minor and non-substantive changes.
BACKGROUND:
On July 26, 2018, City Council approved a five (5) year lease agreement with option to extend two (2) five (5) year terms with NextGen Flight Academy, Inc. for a 4,513 square foot aircraft maintenance hangar and associated office space located at the Riverside Airport (also known as “Hangar G”).
In October 2018, Mr. Brandon Martini, owner of NextGen Flight Academy, Inc., incorporated “Hangar G” under a new company name, CAVU Aero Services, LLC. The name change did not affect the existing lease agreement and was for business purposes only. CAVU Aero Services, LLC continues to provide complete aircraft maintenance services to Airport tenants and pilots from other airports that elect to come to the Riverside Airport for their aircraft maintenance needs.
Due to the company name change, the City and Lessee desire to enter into a new five-year lease agreement with one (1) option to extend upon mutual written consent.
DISCUSSION:
CAVU Aero Service, LLC currently leases a 4,513 square foot hangar and office building located at Riverside Airport (also known as “Hangar G”). This lease agreement will ensure that the Airport is in full capacity for leasing space and furthering the Airport’s sustainability as a self-supporting enterprise fund.
The term of this Lease shall commence January 2, 2026, and shall terminate on January 2, 2031. The City hereby grants lessee an option to extend this lease upon mutual written consent for an additional period of five (5) years following the expiration of the initial term as provided herein this paragraph. Any extension to this lease shall be subject to approval by City and on the same terms and conditions contained herein, provided, however, the rental payments shall be subject to negotiation by the parties.
Monthly rent shall be adjusted each year commencing with the rental payment due on August 1, 2026, to reflect the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario Standard Metropolitan Statistical Area (“Index”) published by the Bureau of Labor Statistics of the United States Department of Labor for most recent 12-month published index, based upon the corresponding increase, if any, in the Index as it stands on May that year over the Index as it stood on May of the prior year.
FISCAL IMPACT:
The fiscal impact of this action is estimated revenue of $245,688 which is comprised of base rent of $245,688 for the five-year term, CPI is not included in this base rent estimate. Monthly rent is $4,094.80 and will be increased on an annual basis based off the Consumer Price Index for the Riverside-San Bernardino-Ontario area. Revenue will be deposited in the Airport Fund, Airport Building & Ground Rental revenue account 0000530-346120.
Prepared by: Daniel Prather, Airport Manager
Approved by: Daniel Prather, Airport Manager
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Gilbert Hernandez, Assistant City Manager Approved as to form: James Johnson, City Attorney
Attachments: Agreement
CAVU Second Amendment Lease Agreement ● Page 2