City of Redlands Offers New Lease to Airport Tenant

Following several months of discussion and more than a year of working to accommodate the tenant, the City of Redlands on Tuesday, June 1, extended an offer for a new lease to Coyote Aviation on City property at the Redlands Municipal Airport. Dismissing much of the public misinformation regarding the expiration of the previous lease and Coyote Aviation’s failure to renew their previous land lease with the City at the airport, the City Council offered a new agreement that addresses the council’s fiduciary responsibilities to Redlands taxpayers and the needs of the airport.  In September 2000, Coyote Aviation entered into a 20-year agreement to lease approximately 36,000 square feet within the Redlands Municipal Airport. The current rent is approximately 37 cents per square foot, an amount considerably below today’s market rates. A copy of the lease is available to view here: https://www.cityofredlands.org/sites/main/files/file-attachments/coyote_aviation_agreement_-_airport.pdf?1621891989.    Section 2 of the lease agreement expressly states that the “lease shall remain in full force and effect until April 4, 2020, at which time it shall terminate, unless otherwise provided herein.” The terms provided Coyote Aviation the option to extend the lease by notifying the City of their intention at least 45 days prior to the lease expiration. The option to extend provided an additional two 15-year terms, for a possible 50-year maximum term.  However, Coyote Aviation failed to meet their obligations under the lease to notify the City of their desire to extend the agreement. Nearly four months after the required notification period, Coyote Aviation informed the City that they wished to extend the lease, along with their extremely beneficial terms, for a potential 30 additional years. By that time, the agreement was no longer valid and the City Council recognized it now had a fiduciary obligation to taxpayers to review any new agreement in light of current market rates and terms.  Since April 2020, Coyote Aviation, with the City’s permission, has remained onsite as a month-to-month tenant with the same terms as in their expired lease. It is the City’s desire to reach a new agreement with Coyote Aviation to allow them to continue business while also protecting the public’s interest by bringing the lease terms up to modern standards.  The Redlands Municipal Airport is a public facility owned by the residents and managed by the City of Redlands. Information regarding Redlands Municipal Airport is available at https://www.cityofredlands.org/redlands-municipal-airport-rei.  For more local news and information click here.