EXHIBIT

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C1TY HALL :-;;I::.~~:li,:j

!·:r.Robert Cara~gi

California Aviation, Inc.

2501 hiroort AveCUE

Santa ~o~ica, California I. W\!A." l ~ r!- -r 1+:z.-'1

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Dear Mr. Carangi:

This letter ~ill outline the curren~ scope of negoti2ticrJ Dety;een the City of S2:nt.2. !·:or;ica ana v ou r c ornp arry ,

Your company is one of the shareholders in Cloverleaf

hviation. Cloverleaf Aviation has a lease of approximately

~i): acres on the south side of the ru~~ay at Santa Monica

.\irpcrt. The terrrl of the Le a s e is to the yea.!~ 1996 w The

~i~ht~ and obligations of thE parties unaei the lease are the

cu~-~ent subject of litiga~icnw

30th you 2nd ~he City of Santa ~onica are interested in

resolving the current litigation. In order to facilitate

planE to develc; ~~e south side of the rU~~2Y, the City is

desirous of terrrinating the Cloverleaf Avi~tion lEase.

The City cu~rently owns approximately 27 acres of land

on the no~th side of the run~a)'. This land is available for

2 i r r.o r t us c s , corr.no r c i a I development! resider.tial de v e i oprne t ,

~n6 ()pen space 2n~ recreation uses.

In order to resolve all ou~StanGlns disputes! we have

had discussions about granting you developnlent rights pursuant to lone-term arouno le2ses for 2 substantial Dortion of

the 27 acre ~ite. -The development rigl1ts would in~lude

certain airport-related ~ses and con:mercial offi·ce buildings.

In exc~an e for the City giving you ~he right to engage in

such devQ opm~nt, ~·C~ ~ol]16 exec~t~ the necessary documents

to rescin the Clo\Terleaf Avj2~ion l~ase.
r'dge 2

~~r. Robert Carangi

?,ugust 5, 1981

At this time, the City does not desire to proceed

beyond the discussion stage unless you join efforts with a

responsible developer. Once you have secured a responsible

develocer to work with you, the City Council desires that a

specific 2greement be negotiated for its approval 25 soon as

pcssible.

Sincerely yours,

~Kr:~~l U~'---,I" ':" L·~.kl"~'E-:R:O--- l_ .....,

Ci -::Y' Attorney

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FEB 9 1989

Nr. Hank Dittmar

Santa Nonica !·!unicipalAirport

3223 Donald Douglas Loop-South

Santa Monica. California 9040t

Dear Mr. Dittmar:

. This is in reference to your letter dated January 31. 1989 regarding

devel opeent of the 37.5 Ac residual land parcel.

You posed several questions on different issues and we offer the following

COG1ments:

Use of Airport Perimeter Road by Project Traffic. As we previously

stated. the perimeter road was bui 1t l'/ithFederal funds for the

purpose of providing access by airport service and maintenance

vehicles between the north and south sides of the airport. We

consider this road necessary to maintain safety and security and

to prevent interference with air traffic operations. We will not

concur with converting the perimeter road to public use.

\~/ Shortening of Runway. The 1984 agreement requires the City to

~ maintain a 5000' runway and we would object to any proposal to

shorten it.

Tunnel under the Airport. Due to the significant impact to alr

traffic operations. we would object to an 8-12 week airport closure

for the purpose of constructing a tunnel. Other than the specified

residual land. the Agreement requires thai the balance of airport

property be dedicated for airport use and we would object to any

change.

Residential Use of Airport Residual Land. Development of

residential uses on the residual lands is contrary to the Agreei~nt.

as the City is required to maintain 6 noise mitigation program to

reduce noise impacts and to develop the residual land for uses

comsat tb le \-litll airport operations. ~!e consider residential use on

the residual lands as incompatible with airport operations.

I trust the above satisfies you inquiry.

Sincerely. EXHIBIT

Iltd- 8- Origiral S1jned By

Rober-t C. 8iocm

Rober t C. 8100m

Supervisor. Standards Section

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