HomeMy WebLinkAboutMINUTES - 08102010 - C.06RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of
the County, an Amended and Restated Lease between the County and Byron Jet Center,
LLC, for a 40-year period, for approximately 2 acres of vacant land located on Osprey
Court at Byron Airport.
FISCAL IMPACT:
There is no negative impact on the General Fund. Under the Amended and Restated Lease,
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. Under the Amended and Restated Lease, the Airport Enterprise Fund will
receive construction period rent equal to $500 per month, after which ground rent will be
$1,020.84 per month ($12,250.08 per year). After the initial ground rent period, ground rent
will increase annually by a 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
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/10/2010 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
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: August 10, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C. 6
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:August 10, 2010
Contra
Costa
County
Subject:Rescission of Prior Lease Approval; Approval and Authorization to Execute a Long-Term Lease with Byron
Jet Center LLC for a Byron Airport Development
BACKGROUND: (CONT'D)
additional general aviation aircraft facilities and services. The site is about 2 acres of
vacant land owned by the County that is located on the westerly side of the Byron
Airport around Osprey Court (see attached map). The parcel is proximate to the Byron
runways, adjacent to other aviation uses and designated for aviation uses on the Byron
Master Plan. The parcel is under the jurisdiction of the Byron Airport and entirely within
unincorporated County.
The County entered into a 40-year ground lease with Byron Jet Center, LLC (Byron Jet)
on November 27, 2007. Subsequent to the lease start date, changes in the economic
climate affected Byron Jet’s ability to bring the originally-proposed project to fruition. As
a result, Byron Jet requested that the lease be amended to reduce the size of the project,
lower ground rent, and modify other development terms to make the project viable for
implementation.
The modified project consists of four infill aircraft hangars plus infrastructure to support
the proposed use. Each of the four hangars will be sold as leasehold condominiums. The
condominiums will have a condominium owners association. Byron Jet will assign its
interest in the lease to the condominium owners association once 75% of the hangars
have been sold to third party purchasers. The condominium owners will own a
subleasehold interest in the lease between the County and the condominium association.
Upon expiration or termination of the Amended and Restated Lease, title to all of the
improvements, including the hangars, will vest with the County. The leasehold interest
held by the condominium owners’ association will be subject to a recorded set of
covenants, conditions and restrictions.
A copy of the Amended and Restated Lease signed by the Tenant is attached. The terms
of the Amended and Restated Lease are comparable to the terms approved by the Board
on November 27, 2007, except that the parcel size has been reduced and the payment
obligations were modified to reflect the smaller project size. In addition, the Amended
and Restated Lease incorporates updated provisions that have been incorporated into
other new development leases at the airports. The term of the Amended and Restated
Lease is 40 years.
CONSEQUENCE OF NEGATIVE ACTION:
A negative action will likely result in termination of the project and a delay in the
development of vacant and underutilized land at Byron Airport. A delay in development
at Byron Airport will negatively impact general aviation aircraft facilities, services,
Airport demand needs, the Airport Enterprise Fund, and the County General Fund.
CHILDREN'S IMPACT STATEMENT:
ATTACHMENTS
Byron lease