|Gunnell has been leasing about 628,000 square feet of land, hangar, and office space at SMO since 1986 and they have been profiting multiple millions of dollars each year. While they began their lease in 1986 as an FBO (named Gunnell Aviation) that provided aviation services, today they are Gunnell Properties and they are primarily in the business of leasing aviation property at SMO. They had been paying the City below market rents of only about $220,000 per year, and then subleasing their space to third party subtenants. Today’s market rents are estimated to be worth upwards of $4 million dollars per year.
Gunnell signed a Forbearance Agreement that was negotiated with the City [see www.bitly.com/gunnell] where they agreed to leave on October 30, 2015. They are required to perform environmental remediation before leaving. Gunnell has been extended an additional 4 months so they now agree to leave by February 29, 2016. The Forbearance Agreement contains a clear and unambiguous agreement by Gunnell to leave on February 29, 2016 (in Section 5) and it also releases the City from all future claims and lawsuits (in Section 6).
When Gunnell leaves, all their subtenant leases terminate, too. Per black letter California real estate law, once a master tenant leaves, all the subtenants must leave. If the Gunnell subtenants want to stay, they must seek a new lease directly with the City. If their use is compatible with the neighborhood, they should get one.
The rents earned by the City directly from neighborhood-friendly tenants in the already-existing rental space should go to help fund the future park and open spaces that are mandated by the 2014 Measure LC Charter Amendment [see www.bitly.com/amendmentlc].
We must encourage the continued vigilance and efforts of our elected officials to reduce or eliminate the noise, pollution, and dangers from SMO.
Thanks for the support from the many on this list and others who already successfully stopped the City from extending 3-year leases to the aviation tenants. Now we want to see a noticeable reduction in jet traffic before another person gets cancer, asthma, heart disease, or another plane crashes.
Thanks for your continued effort to reduce the ill effects of the Santa Monica Airport!! Please forward this email to friends and neighbors and help our voices grow.
Happy Holidays and a great New Year to you all!
In good faith,