Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 22-229, authorizing the Executive to execute Amendment No. 4 to Land Lease 17-003 with Propeller Airports Paine Field LLC at the Snohomish County Airport
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DEPARTMENT: Airport
ORIGINATOR: Pete McGuire
EXECUTIVE RECOMMENDATION: Approve - Ken Klein
PURPOSE: To authorize the Executive to execute Amendment No. 4 to Land Lease 17-003 to settle rent arbitration and provide financial hardship rent relief.
BACKGROUND: .
> The County entered into Land Lease 17-003, Amendment No. 1, Amendment No. 2, and Amendment No. 3 with Propeller, Propeller Airports Paine Field LLC ("Propeller"), as recorded June 23, 2017, September 24, 2018, September 25, 2019, and March 30, 2022 respectively, for the purpose of constructing, operating and maintaining a passenger terminal facility.
> Propeller Airports Paine Field, LLC is the only aeronautical tenant that provides services and facilities to accommodate commercial air carriers at Paine Field which has suffered a dramatic decline in passenger activity beginning March 2020 because of the pandemic.
> The Federal government provided substantial financial relief to public sector airport sponsors who operate passenger terminals, but such relief was not made available to private sector operators of passenger terminals.
> At the same time PAE has experienced an unprecedented decline in passenger activity and Propeller has incurred additional costs to ensure that the terminal building provides a safe and healthy environment for the traveling public in light of the pandemic and will continue to provide enhanced safety and cleaning protocols to protect the public and its staff. As a result of the impacts of the pandemic, Propeller is in a unique position with respect to other aeronautical tenants at Paine Field and is in an unusual position compared to publicly owned and operated passenger terminals in the United States.
> The County undertakes recurrent appraisal...
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