Agenda Item Wording:
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Introduction and first reading of Ordinance No. 2022-08, authorizing an amendment of the current lease between the City of Visalia and the Federal Express Corporation for a multiyear agreement giving the potential to add ten (10) total years to the agreement, at the rate of eleven thousand three hundred seventy-nine dollars and fifty-one cents ($11,379.51) monthly plus annual CPI adjustments.
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Deadline for Action: None
Submitting Department: Administration - Airport
Contact Name and Phone Number:
Jody Miller, Airport Manager, 713-4282, Jody.Miller@visalia.city
Nick Mascia, Assistant City Manager, 713-4323, Nick.Mascia@visalia.city
Department Recommendation:
Staff recommends that Council introduce Ordinance 2022-08 and authorize the City Manager to amend the current Airport lease with the Federal Express Corporation to extend the current agreement for five (5) more years with one (1) renewal option of an additional five (5) years leading to a potential total additional agreement length of ten (10) years. The current lease would continue until 2027, and have the potential for a five (5) year extension until 2032.
Background Discussion:
The current lease agreement between the City of Visalia and the Federal Express Corporation was signed into agreement in May of 2017 for an initial term of five (5) years with one lessee (Federal Express Corporation) optional renewal period of an additional five (5) years. In Exhibit "B" and Exhibit "C" of the original agreement, there was a list of agreed upon improvements that the lessor (The City of Visalia) was to make throughout the term of the agreement. The agreed upon improvements were never completed due to conflict on who would be responsible financially for completing them. These improvements are now in Exhibit "A" of the amended lease with negotiated terms for fiscal responsibility that both parties, including the City of Visalia legal advisors,, have agreed upon. It also incl...
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