Council Approves Multiple Airport Ground Leases

At its June 28 meeting, the City Council approved multiple ground leases for properties located at the Addison Airport, including new developments, redevelopments, and lease assignments. These projects represent nearly $500,000 in new annual revenue for the Airport as well as nearly $25 million in new private capital investment. You can watch the Council discussions for each item by clicking on the blue links.

New Development

Sky Harbor: In response to a Request for Qualifications (RFQ), Sky Harbor was selected to redevelop a 6-acre site located at 4505 Claire Chennault Drive. They plan to construct a total of six private jet hangars totaling 101,000 square feet dedicated to serving high-end business aviation users including corporate and private flight departments. The estimated construction value of the building improvements exceeds $15 million.

Sky Squared: Addison Airport tenant Sky B&B created Sky Squared LLC to build a new 31,000-square-foot executive jet hangar on 2.12 acres located immediately north of Sky B&B’s existing hangar facility. The proposed use is for the storage of corporate aircraft owned or under the operational control of Sky B&B or Sky Squared, and for the sub-leasing of aircraft storage space to similar aeronautical operators. Sky Squared’s minimum capital investment will be $4.5 million.

Redevelopment

AQRD: Aerospace Quality Research and Development (AQRD) is an aerospace engineering firm and repair station based at Addison Airport that currently occupies 40,000 square feet of hangar spaces at 4600 Claire Chennault Drive and 4400 Westgrove Drive. With the approval of new ground leases at 4582 and 4584 Claire Chennault Drive, AQRD is doubling its footprint as it continues to grow and expand operations. They plan to invest $1 million in building capital repairs and renovations before the expiration of the initial lease term.

Assignments

Scarborough I Airport, L.P.: Scarborough is the owner of an aeronautical facility at Addison Airport. In 2006 it purchased property at 16445 Addison Road and, at the same time, took the assignment of an Airport ground lease consisting of .55 acres adjacent to its property that originally commenced in 1981. That ground lease expired in February of 2022.

Scarborough is in the process of selling its fee simple property and as a condition of the sale, needs to secure a long-term lease agreement with the airport and approval to assign that lease to Bel Air Communities, a Plano-based national real estate developer and owner of multi-family and residential communities.

 As part of the new long-term lease agreement approved by the Council on June 28, Scarborough will be required to construct 22,000 square feet of aircraft apron (concrete pavement) that is part of the ground lease area. Council also approved the reassignment of that lease to Bel Air once the improvements are complete. Finally, Council approved a Developer Participation Agreement between Scarborough and the Town of Addison that contracts Scarborough to reconstruct 7,200 square feet of the taxiway shoulder for the Town at the same time they are making their required pavement repairs.