Title
Ground Lease with LGSTX Services, Inc. (Ordinance S-45124)
Description
Request to authorize the City Manager, or his designee, to enter into a Ground Lease with LGSTX Services, Inc. (LGSTX) for approximately 80,000 square feet of vacant space to park its fleet of tractor trailers on Aviation land. Rent will be approximately $80,000 for the first lease year. The rent will be adjusted annually based on the Consumer Price Index.
Report
Summary
LGSTX specializes in providing facility maintenance services, aviation ground support equipment services, and distribution services. The company is requesting to enter a ground lease for approximately 80,000 square feet of vacant space to park its fleet of tractor trailers on Aviation land. LGSTX will install fencing, a seal coat and striping, and will have 24-hour security. LGSTX has also requested, and the lease may contain, the option to expand its leasehold in year two of the agreement up to approximately 179,000 square feet. This lease request is in conjunction with an additional request by LGSTX to lease cargo space in West Air Cargo Buildings A, B, and C to conduct air cargo operations.
Contract Term
The term of the ground lease will be for two years, with two, one-year options to extend at the sole discretion of the Aviation Director.
Financial Impact
Rent will be approximately $80,000 for the first lease year. The rent will be adjusted annually based on the Consumer Price Index.
Location
610 S. 24th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.