M&C Review


COUNCIL ACTION:  Approved on 12/11/2018 - Resolution No. 5006-12-2018

DATE: 12/11/2018 REFERENCE NO.: **G-19438 LOG NAME: 55VERIZON LEASE PFIC
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Adopt Resolution Approving the Assumption of the Verizon Place Lease Obligations by the DFW Airport Public Facilities Improvement Corporation (PFIC), and the Operation of the Facility by the PFIC (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council adopt the attached Resolution approving the assumption of the Verizon Place lease obligations by the DFW Airport Public Facilities Improvement Corporation (PFIC), and the operation of the facility by the PFIC.

 
DISCUSSION:

Verizon leases a 77.06-acre campus from the DFW Airport Board, which has 64 years remaining on the term. Verizon wants to be released from the obligations of the lease, and is willing to assign the lease to DFW Airport's PFIC. Before the PFIC can assume the obligations of the lease, the City Councils of Dallas and Fort Worth will need to authorize the lease as a PFIC project.

Assignment of the lease to the PFIC furthers DFW Airport's Strategic Plan concerning the use of the property. Verizon Place was formerly Braniff Airline Headquarters.  After Braniff Airlines filed for bankruptcy in 1983, DFW Airport assumed ownership of the property. In 1986, DFW then leased the property, with Owner City approval, to GTE Realty, now Verizon Wireless, for a lease term of 99 years. If approved, it is anticipated that the assignment transaction will close by December 31, 2018.

This M&C does not request approval of a contract with a business entity.
 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that this action will have no material effect on City funds.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Bill Welstead (5402)
Additional Information Contact:
Aya Ealy (5403)

 
 
ATTACHMENTS
  City Resolution.docx
  Detailed Map.pdf