HomeMy WebLinkAboutMINUTES - 11032009 - C.8RECOMMENDATION(S):
AUTHORIZE the Director of Airports, or designee, to negotiate a long-term ground lease
and development terms between the County, as Landlord, and the Aviation Development
Group, LLC as the developer for approximately 0.86 acres of land on the north side of Sally
Ride Road and east of Marsh Drive at the Buchanan Field Airport. Pacheco Area (District
IV).
FISCAL IMPACT:
There is no negative impact on the General Fund. The Airport Enterprise Fund could realize
lease and other revenues and the County General Fund could realize sales tax and other
revenues if a lease is successfully negotiated.
BACKGROUND:
The development site is approximately 0.86 acres of land owned by the County and at the
northerly end of Sally Ride Drive as shown on the attached map. The parcel is proximate to
the Buchanan Field runways and is designated for aviation use on the Buchanan Field
Master Plan. The parcel is under the jurisdiction of the Buchanan Field Airport and entirely
within the unincorporated
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/03/2009 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: November 3, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C. 8
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:November 3, 2009
Contra
Costa
County
Subject:Authorization to Negotiate Ground Lease and Development Terms for Approximately 0.86 Acres of
County-Owned Land at the Buchanan Field Airport
BACKGROUND: (CONT'D)
County.
On August 8, 2006, the Board of Supervisors approved a Mitigation Monitoring Plan and
lease for DHI Northwest, LLC (DHI) to develop hangar and office space on this site. The
project included approximately 19,000 square foot of corporate hangar space for single
piston and turbo-prop engine aircraft, twin piston and turbo-prop engine aircraft and
potentially small jet aircraft. The number of aircraft to be stored was anticipated to range
from 1 to 12 in total. DHI then encountered financial difficulty and was not able to
commence project construction.
On December 16, 2008, the Board of Supervisors approved a lease assignment from the
tenant, DHI Northwest, LLC, to Wings of Buchanan, LLC (Wings). The Board of
Supervisors also approved a first lease amendment which provided Wings an opportunity
to terminate the lease on or before May 15, 2009, without penalty. On June 2, 2009, the
Board of Supervisors approved a second lease amendment that extended the termination
period until July 31, 2009. On July 30, 2009, Wings of Buchanan terminated their lease
because they were not able to construct the project.
On August 18, 2009, Airport staff solicited for new development interest in this site. The
solicitation included a September 2, 2009, deadline to receive letters of development
interest. The Airports Division received three letters of development interest prior to the
deadline.
Consistent with the June 13, 2006 Board of Supervisor’s approved selection process for
airport projects, Airport staff sent the three interested parties a request for further
information that required a $25,000 development deposit and a response deadline of
October 7, 2009. The County received one response packet and development check from
the Aviation Development Group (ADG).
Negotiation of lease terms would expand economic development activity at the Buchanan
Field Airport, provide additional revenues to the Airport Enterprise Fund, and allow
Contra Costa County to expand aviation related business available at the airport. The
ADG proposed project is consistent with the Airport Master Plan and General Plan plus
the previously approved Mitigation Monitoring Plan.
CONSEQUENCE OF NEGATIVE ACTION:
Delay in initiating the lease development process and, if necessary, further environmental
review will result in a delay of developing vacant land at Buchanan Field Airport and
will negatively impact the Airport Enterprise Fund and County General Fund.
ATTACHMENTS
Parcel Map