Commission approves consent to sublease for Datsun hangar at Ottawa Municipal Airport

City staff recommended the commission consent to a sublease between Datsun International Parts Inc. (DIPI) and Datsun Investment Inc. (DII) for hangar facilities at Ottawa Municipal Airport and authorize the city attorney and city manager to provide the lender with necessary documentation.

Brian Silcott, city manager, explained the sublease is a financing requirement for construction of a third hangar and said the proposed sublease is a corporate, in-house restructuring: "It is subordinate to the primary lease," he said, and there are no material deviations from the master lease or airport and FAA policies.

Staff told the commission that the city attorney had reviewed the sublease and that the agreement conforms with the master lease (Article 19 review and consent requirement). The project was described as consistent with the city's economic-development goals, increasing property tax base, creating construction jobs and supporting aviation-related employment.

Commissioners moved and seconded the item and the clerk took a roll-call vote. Commissioners recorded in the roll call said Yes: Commissioner Goodmore; Commissioner Koehler; Commissioner Crowley; Mayor Pro Tem Clayton. Mayor Allen was absent. The chair announced the motion passed.

The commission's consent obligates staff to file the written documentation the lender requires but does not change obligations under the primary lease or city ownership rights. Staff recommended approval and offered the commission the option to defer to the April 2 meeting; the commission approved the consent at the March 26 meeting.