HomeMy WebLinkAboutMINUTES - 06222010 - C.13RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of
the County, a 40-year ground lease between the County, as Lessor, and The Hangars at
Buchanan LLC, as Tenant, for the lease and development on approximately 0.86 acres
located north of the Airport Offices (refer to Exhibit A). Pacheco Area.
FISCAL IMPACT:
There is no negative impact on the General Fund. The Airport Enterprise Fund will receive
lease and other revenue and the County General Fund will receive property, sales and
possessory interest tax revenues from this development. Upon completion of construction
rent period (at $500 per month), the ground rent will begin at $1,498.47 per month (or
$17,981.64 per year) and increase annually by the CPI inflator. Every 10 years the lease will
be revalued based on market appraisals.
BACKGROUND:
The project is needed in order to accomodate demand at the Airport for additional general
aviation aircraft facilities and services. The site is about 0.86 acres of vacant
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/22/2010 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
Federal D. Glover, District V
Supervisor
ABSENT:Susan A. Bonilla, District IV
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 22, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C. 13
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:June 22, 2010
Contra
Costa
County
Subject:Approval and Authorization to Execute a Long-Term Lease with The Hangars at Buchanan LLC for a
Buchanan Field Airport Development Project.
BACKGROUND: (CONT'D)
County owned land at the Buchanan Field Airport, located entirely within the
unincorporated County on the east side of Marsh Drive and north of Sally Ride Drive and
the County Airport offices as shown on the attached property map. The parcel is
proximate to the Buchanan Field runways. The property is designated for aviation use
only, and has been determined to be in compliance with, the approved Buchanan Field
Master Plan.
The project consists of five infill aircraft hangars (three 50 x 50 and two 45 x 40), one
will have a small attached office space. A maximum of 12,500 square feet of hangar
space and 1,200 square feet of office space may be constructed on this site. The project
also includes an apron, parking lot and landscaping.
The project will be constructed as a leasehold condominium for aircraft hangars and the
developer’s interest as lessee under the lease will be assigned to a condominium owners’
association once 80% of the hangars have been sold to third party condominium
purchasers. The condominium owners will hold title to their condominium and a sublease
of their condominium and common area from the condominium owners’ association.
Upon expiration of the lease or earlier termination thereof, title to the hangar
improvements will vest with the County. The leasehold held by the condominium
owners’ association will be subject to a recorded set of covenants, conditions and
restrictions.
The project has been determined to be in compliance with the General Plan. On August 8,
2006, the Board adopted the Mitigated Negative Declaration and authorized the Director
of Airports to enter into a lease with DHI Northwest Hangar, LLC for a term of forty
years for the purpose of constructing an aircraft hangar with attached office spaces. DHI
Northwest Hangar, LLC assigned its lease to Wings at Buchanan, LLC on December 16,
2008. Wings of Buchanan, LLC terminated its lease in May 2009.
After Wings at Buchanan, LLC terminated its lease; Airport staff put a Request for
Proposals (RFP) solicitation out to determine development interest. The Hangars at
Buchanan, LLC submitted a proposal to develop this site. The proposed Hangars at
Buchanan, LLC project is consistent with the project description and environmental
impacts as examined and detailed in the Mitigated Negative Declaration for the former
DHI Northwest Hangar, LLC project.
CONSEQUENCE OF NEGATIVE ACTION:
Delay in approving the project will result in a delay of developing vacant and
underutilized land at Buchanan Field Airport and will negatively impact general aviation
aircraft facilities, services, Airport demand needs and the Airport Enterprise Fund and
County General Fund.
CHILDREN'S IMPACT STATEMENT:
ATTACHMENTS
Lease Agreement