Memorandum
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The memorandum discusses a proposed amendment to the lease agreement between the City of San José and the Department of General Services for airport premises. It recommends delegating authority to the City Manager to negotiate and execute a second amendment that includes five one-year options to extend the lease term and implement annual rate adjustments. The first extension option is set to take effect retroactively from July 1, 2025, and the final option could extend the lease through June 30, 2030. The lease supports Cal Fire's operations and generates significant annual revenue for the Airport.
Key points
- The lease is for buildings located at 1431 and 1433 Airport Boulevard.
- The first extension option will take effect retroactively from July 1, 2025.
- The lease generates approximately $146,193 in annual revenue for the Airport.
- The total estimated revenue over the potential five-year extension period is $730,965.
- The lease is terminable by either party with 90 days written notice.
Limitations
- The text does not specify the exact dates for the initial lease or the first amendment.
- There are unresolved placeholders in the document, such as the council agenda and item numbers.
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