REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department THROUGH: BRITTNEY VERROS, Airports Property Supervisor Airports Department BY: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department SUBJECT ..Title Approve an Early Termination of Lease with Air Land and Storage Investors, a Limited Partnership, at Fresno Yosemite International Airport (FAT) to terminate the Land Lease approximately 20 years early. (Council District 4) ..Body RECOMMENDATION Staff recommends that the City Council (Council) authorize the Director of Aviation, or designee, to execute this Early Termination of Lease with Air Land & Storage Investors, a Limited Partnership, to terminate the Land Lease of +/- 2.19 acres, approximately 20 years early due to death of original Managing Member and dissolution of the partnership entity. EXECUTIVE SUMMARY Atwood Grove Construction Company, Inc. entered into a Lease with the City in 1977. That Lease was then partially assigned to Air Land & Storage Investors for Lots 16 and 17, consisting of approximately 2.19 acres. Air Land and Storage Investors (Lessee) then entered into a direct Land Lease with the City on August 1, 2007. In the time since the execution of aforementioned Leases, neither Atwood Grove Construction Company nor Air Land & Storage Investors made any improvements on or to the land. It is not in the City's best interest to enforce the full term of the Lease. The City of Fresno (City) wishes to retake the parcel and explore options for future development. BACKGROUND Atwood Grove Construction Company, Inc. entered into a Lease with the City in 1977. That Lease was subsequently replaced with the agreement between Air Land & Storage Investors and City of Fresno on August 1, 2007. That Agreement was set to expire on December 31, 2044. Ultimately, Lessee's plans to develop the land did not materialize. On or around November 30, 2023, Lessee contacted City to advise of their intent to dissolve the partnership entity due to death of original Managing Member and requested their Land Lease to be terminated early. As of December 30, 2023, the Lease was delinquent $21,452.73. Lessee thereafter cured the delinquency on June 15, 2024. No further rent charges are due. The parties agreed that the termination would be retroactive to June 30, 2024. City wishes to retake the parcel to explore options for future development. Interest in the parcel will be assessed by the Airports Department issuing an RFQ. The City Attorney has reviewed and approved this License as to form. ENVIRONMENTAL FINDINGS This is not a "project" for the purpose of CEQA pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference is not applicable to this Project pursuant to Fresno Municipal Code 4-109(b). FISCAL IMPACT The estimated revenue loss for granting the early termination is $555,247.20. Revenue loss affects Airports Enterprise Fund. There is no impact to the General Fund or ratepayers of the City of Fresno from this item. Attachment: Early Termination of Lease with Air Land and Storage Investors