HomeMy WebLinkAboutMINUTES - 06022009 - C.09RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute on behalf of
the County, a second amendment to the Lease between the County, as lessor, and Wings at
Buchanan, LLC, as tenant.
FISCAL IMPACT:
There is no negative impact on the General Fund. The Airport Enterprise Fund will receive
lease and other revenues and the County General Fund will receive property, sales and
possessory interest tax revenues from this development.
BACKGROUND:
In August 2006, the County entered into a 40-year ground lease with DHI Northwest
Hangar LLC (DHI) under which DHI leased property at Buchanan Field for development of
non-commercial aircraft hangars with connected office space (the “Lease”). DHI was not
able to bring the project to fruition.
On December 16, 2008, the Board authorized an assignment of the Lease from DHI to
Wings at Buchanan, LLC (the “Tenant). On the same date, the Board authorized the
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/02/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Beth Lee (925)
646-5722
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: June 2, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C. 9
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:June 2, 2009
Contra
Costa
County
Subject:APPROVE AND AUTHORIZE SECOND AMENDMENT TO LEASE WITH WINGS AT BUCHANAN,
LLC, PACHECO AREA
Director of Airports to amend
BACKGROUND: (CONT'D)
the terms of the Lease to be consistent with the then-current market conditions through a
First Amendment. Under the First Amendment, the Tenant was granted a five-month
period of time to evaluate the development project, during which period the Tenant could
terminate the Lease by written notice between December 17, 2008 and May 15, 2009.
The Tenant has not been able to complete the preconstruction valuation process necessary
to proceed with the project. As a result, the Tenant has requested an extension to the due
diligence period to allow sufficient time to complete the process. This Second
Amendment to the Lease would extend the due diligence period to July 31, 2009,
allowing the Tenant additional time to complete the preconstruction process and to
terminate the Lease.
CONSEQUENCE OF NEGATIVE ACTION:
In the absence of an extension to the due diligence period, it is likely the Tenant will
terminate the Lease and development of the site will be postponed indefinitely.
ATTACHMENTS
Wings 2nd Amendment