COUNCIL COMMUNICATION

DATE:

 

4-7-03

 

 

 

 

SUBJECT:   FINAL READING OF ORDINANCE NO. 2003-O-091

Authorizing the City Manager to execute an Assignment of Lease between the City of Laredo, as Lessor, and International Bank of Commerce (“IBOC”) and Sanchez O’Brien Oil and Gas Corp., A Joint Venture, as Tenant/Assignor, for approximately 26,965 sq. ft. of land, including the approximate 12,000 square feet constituting the west section of Hangar No. 1309 located at the Laredo International Airport authorized by Ordinance No. 93-O-029 dated March 1, 1993, and as amended on January 5, 1998, by Ordinance No. 97-O-323. Said Assignment will be to Labata Services, as Assignee.  All other terms and conditions remain unchanged and in effect; and contingent upon approval of the Assignment of Lease, further authorizing the City Manager to execute a Release of Tenant’s Liability, for the benefit of International Bank of Commerce and Sanchez O’Brien Oil and Gas Corporation, A Joint Venture;  providing for an effective date.

 

INITIATED BY:  Cynthia Collazo

                           Assistant City Manager

 

STAFF SOURCE:  Jose L. Flores

                               Airport Director

 

PREVIOUS COUNCIL ACTION:   On March 24, 2003, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

BACKGROUND:     

 

On March 1, 1993, City Council approved through Ordinance No. 93-O-029 a lease with International Bank of Commerce and Sanchez O’Brien Oil & Gas Corporation, a Joint Venture, for the approximate 26,965 square feet of land which includes the approximate 12,000 square feet of the west one-third of Hangar No. 1309.  This lease was further amended on January 5, 1998, by Ordinance No. 97-O-323 in order to allow Lessee to sublease said premises.   

 

In 1993, IBC / SOB made substantial improvements to Hanger No. 1309 (west section).      

 

Now, International Bank of Commerce and Sanchez O’Brien Oil & Gas Corporation, a Joint Venture, wish to assign said lease to Labata Services, a Fixed Based Operation, and Labata Services wishes to accept said assignment.

 

The lease provides that the monthly rent be adjusted annually and that the rent also be adjusted at the tenth (10th) year anniversary being March 1, 2003. An appraisal is being done to adjust the rent effective March 1, 2003.

 

FINANCIAL IMPACT:     Aeronautical Building  Revenue Account 242-0000-361-1086

                                        Current Monthly Rent $1,513.16  or $0.126 Per Square Foot

 

Fair Market Rent Appraisal will determine the monthly rent effective March 1, 2003.

                                                                              

COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.

 

 

 

STAFF RECOMMENDATION:  That the City Manager be authorized to execute an Assignment of Lease and the Release of Tenant’s Liability.

 

 

 

ORDINANCE NO. 2003-O-091

 

AUTHORIZING THE CITY MANAGER TO EXECUTE AN ASSIGNMENT OF LEASE BETWEEN THE CITY OF LAREDO, AS LESSOR, AND INTERNATIONAL BANK OF COMMERCE (“IBOC”) AND SANCHEZ O’BRIEN OIL AND GAS CORP., A JOINT VENTURE, AS TENANT/ASSIGNOR, FOR APPROXIMATELY 26,965 SQ. FT. OF LAND, INCLUDING THE APPROXIMATE 12,000 SQUARE FEET CONSTITUTING THE WEST SECTION OF HANGAR NO. 1309 LOCATED AT THE LAREDO INTERNATIONAL AIRPORT AUTHORIZED BY ORDINANCE NO. 93-O-029 DATED MARCH 1, 1993, AND AS AMENDED ON JANUARY 5, 1998, BY ORDINANCE NO. 97-O-323. SAID ASSIGNMENT WILL BE TO LABATA SERVICES, AS ASSIGNEE.  ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND IN EFFECT; AND CONTINGENT UPON APPROVAL OF THE ASSIGNMENT OF LEASE, FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A RELEASE OF TENANT’S LIABILITY, FOR THE BENEFIT OF INTERNATIONAL BANK OF COMMERCE AND SANCHEZ O’BRIEN OIL AND GAS CORPORATION, A JOINT VENTURE;  PROVIDING FOR AN EFFECTIVE DATE.

 

            WHEREAS, the Airport Director recommends that the City Council approve the proposed Assignment of Lease between the City of Laredo, as LESSOR, and International Bank of Commerce and Sanchez O’Brien Oil and Gas Corporation, a joint venture, as Assignor, for approximately 26,965 square feet of land which includes the approximate 12,000 square feet constituting the west section of Hangar No. 1309 located at the Laredo International Airport authorized by Ordinance No. 93-O-029 dated March 1, 1993, and as amended on January 5, 1998, authorized by Ordinance No. 97-O-323 and assigning the lease to Labata Services, as Assignee, and contingent upon approval of the Assignment of Lease, execute a Release of Tenant’s Liability, for the benefit of International Bank of Commerce and Sanchez O’Brien Oil and Gas Corporation, a Joint Venture, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport;

 

            WHEREAS, the Airport Advisory Committee finds that said assignment of lease is in the best interest of the Airport and recommends that the City Council approve the proposed lease; and

 

            WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1:         The City Manager be hereby authorized to execute an Assignment of  Lease between the City of Laredo, as LESSOR, and International Bank of Commerce and

 

Sanchez O’Brien Oil and Gas Corporation, a joint venture, as Assignor, for approximately 26,965 square feet of land which includes the approximate 12,000 square feet constituting the west section of Hangar No. 1309 located at the Laredo International Airport authorized by Ordinance No. 93-O-029 dated March 1, 1993, and as amended on January 5, 1998, authorized by Ordinance No. 97-O-323 and assigning the lease to Labata Services, as Assignee, and contingent upon approval of the Assignment of Lease, execute a Release of Tenant’s Liability, for the benefit of International Bank of Commerce and Sanchez O’Brien Oil and Gas Corporation, a Joint Venture, a copy of which Assignment of Lease is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

 

Section 2:         This Ordinance shall become effective upon passage hereof.

 

            PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2003.

 

 

 

 

 

______________________

ELIZABETH G. FLORES

MAYOR

 

ATTEST:

 

______________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

 

BY:_______________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY