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Home My WebLink AboutMINUTES - 09241996 - D11 TO: BOARD OF SUPERVISORS 4. FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR DATE: SEPTEMBER 24, 1996 SUBJECT: BUCHANAN FIELD AIRPORT - BUCHANAN EAST HANGAR COMPANY - SECOND AMENDMENT TO LEASE SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. Recommended Action: APPROVE and AUTHORIZE the Public Works Director to EXECUTE, on behalf of the County, a Second Amendment To Lease with Buchanan East Hangar Company, under the terms and conditions more particularly set forth in said Second Amendment To Lease. II. Financial Impact: $13,400.00 will be deposited into the Airport Enterprise Fund. III. Reasons for Recommendations and Background: The Buchanan East Hangar Company (tenant) currently leases approximately .40 acres of land at the Buchanan Field Airport. The tenant has expressed its desire to extend its lease by an additional ten years. This item was brought before the Board of Supervisors at the September 17, 1996 Board meeting. At that meeting, Mr. Anthony Tiritilli asked that the item be held over for one week so that he could gather additional information. The Board then directed the Manager of Airports to provide a report on this matter. The following is a summary of the pertinent issues. In 1984, the County leased a parcel of land at the Buchanan Field Airport to the Buchanan East Hangar Company. The lease term is due to expire on June 30, 1999. One of the principal owners of the Buchanan East Hangar Company is Mr. Gerry Alves. In 1991, the County leased a separate parcel of land at the Airport to L.C.A., Inc. (LCA). Mr. Alves is also a principal owner of LCA. Mr. Alves has built four individual executive T-Hangars on the Buchanan East Hangar Company site. Mr. Alves has built ninety individual aircraft T-Hangars on the LCA site. These leases are for locations on opposite sides of the Airport, have varying terms and conditions, and are not related in any way other than in Mr. Alves' involvement. Continued on Attachment: X SIGNATURE: _RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON 09/24/1996 APPROVED AS RECOMMENDED OTHER X CONTINUED this issue to the October 1, 1996, Board of Supervisors meeting for decision. VOTE OF SUPERVISORS X UNANIMOUS(ABSENT --------- ) AYES: NOES: ABSENT: ABSTAIN: HEW:DRA:kd c:\.B024.t9 1 hereby Certify that this is a true and cont coDy of an action taken and entered on the minutes of tha pervisors Orig Div:Airports(Contact-H.Wight 646-5722) Board of Suon the date shown.A September 24 9 cc: County Administrator t TCMELCp qe Oafd Public Works Director nlbOfB 6n Iqd Etre Public Works Accounting Auditor/Controller Aviation Advisory Committee Federal Aviation Administration vi a Public Works) BUCHANAN FIELD AIRPORT - BUCHANAN EAST HANGAR COMPANY - �, SECOND AMENDMENT TO LEASE September 24, 1996 Page Two In early 1996, Mr. Alves requested that the County consider extending the LCA lease for an additional ten years. The County agreed to extend the LCA lease in exchange for a payment of$112,500 to the Airport Enterprise Fund. The Board approved the LCA amendment on July 23, 1996. While the LCA lease extension was being negotiated, Mr. Alves also expressed an interest in extending the term of the Buchanan East Hangar Company lease. At that time, Mr. Alves was informed by the Manager of Airports that the County would consider this as well, but after the LCA amendment had been completed. The Manager of Airports made it clear to Mr. Alves that the Buchanan East Hangar Company lease extension would be a separate transaction from the LCA negotiation. In July 1996, after the LCA agreement had been reached, Mr. Alves again asked that the County consider extending the Buchanan East Hangar Company lease term by ten years. The value of the lease extension was estimated to be approximately $15,000. Rather than requesting a cash payment to the Airport Enterprise Fund, the amendment provided that Mr. Alves would perform certain specific improvements to the Airport in exchange for the lease extension. This was the basis of the lease amendment brought before the Board on September 17, 1996. The improvements have not been completed pending the Board's authorization of the lease amendment. In order to remove any doubt regarding the improvements, the Manager of Airports requested and received a specific quote for the cost of the improvements from the Public Works Department. The quote for this work is $13,400.00. Mr. Alves has agreed to pay this amount in cash. Mr. Alves will not be completing any improvements on the Airport as part of this lease amendment. A revised lease amendment is attached to this Board Order for the Board's consideration. The Board should also be aware that Mr. Tiritilli is a tenant of Mr. Alves on the LCA site, and is not involved with the Buchanan East Hangar Company site. Our understanding is that Mr. Alves and Mr. Tiritilli have not been pleased with each other for some time. Lease extensions are a sound method of raising additional revenue for the Airport Enterprise Fund. The County has extended the lease term for one other tenant at the Airport (unrelated to Mr. Alves), and has been approached by other airport tenants who have similar desires. IV. Consequences of Negative Action: The lease with Buchanan East Hangar Company will not be extended, and $13,400.00 will not be deposited in the Airport Enterprise Fund. Request to Speak Form ( THREE (3) MINUTE. LIMIT) Complete this form and place it in the box near the speakers' rostrum before addressing the Board. Name; A-1vr,4L yr /1. '� ✓.'��,: ltwne: ��`� — ani. 1 am speaking for wnyselfLzar niza6m. *mow of 01sw Indi CHECK ONE: _ 1 wish to speak on Agenda Item #_ Date; My comments will be: general ._forftainsL.. _ ! wish to speak on the subject of D --- _____ 1 do not wish to speak but leave thesecomments for the Board to consider: Request to Speak Form � I ( THREE (3) MINUTE LIMIT) CwWlete this form and place it in the box near the gmakers' before addressing the Board. Name: ___ t'''P. E67 d Address: t � I am speaking for nWielf V a organization: CHECK ONE: Owm of vrzw-lzd oN �.__.. i wish to speak on Agenda Ran # 11 Odw.2 I6� _ My oamma<rts will be. agains.-. ... i wish to speak on the aft of I do not wish to speak but leave these comments for the Board to sattsider: Request-W Speak Form � C ( THREE (3) MINUTE LIMIT) Compiete this form and place it in the box near the speakers,* rostrum before addressing the B , (#00 A&kmL( 1 C`•(. .� l C� 'too �3ty; C9.�iy��tsu��!�. 1 in speaking for myself_.,,or 1'( *NNW of o 0 0E: rt �k 1 wish to Weak on Agenda ken e�n # Q('0 My will be: pnwW .._.*X.V�I 1 wish to speak on the skied _ i do not wish to speak but Iene thieae caMnments for the Board Jo consider ti