HomeMy WebLinkAboutMINUTES - 09212010 - C.19RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of
the County, a lease amendment modifying the lease between the County, as Lessor, and The
Hangars at Buchanan LLC, as Tenant, that relates to the lease of approximately 0.86 acres
located north of the Airport Offices.
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. The lease amendment provides a
termination period fee structure ($100 per month for twelve months and $150 per month for
up to twelve more months). If the project proceeds, construction rent of $500 per month will
be paid through the construction period. Following the construction period, ground rent will
equal $1,498.47 per month (or $17,981.64 per year), increasing annually by the CPI
inflator. Every 10 years the lease will be revalued based on market appraisals.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 09/21/2010 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: September 21, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C.19
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:September 21, 2010
Contra
Costa
County
Subject:Approve and Authorize First Amendment to Lease with The Hangars at Buchanan LLC for a Buchanan Field
Airport Development Project, Pacheco Area
BACKGROUND:
The project site consists of approximately 0.86 acres of vacant 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. 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 is also consistent with the County General Plan.
On July 13, 2010, the Board authorized execution of a lease that would allow for the
construction of five infill aircraft hangars (three 50 x 50 and two 45 x 40), one with a
small attached office space. The project is structured as a leasehold condominium for
aircraft hangars; 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.
In order to permit the tenant time to secure buyers of the hangar condominiums, the lease
permits the tenant to terminate the lease without penalty by 5:00 pm on September 22,
2010. Unfortunately due to the poor economic climate, the tenant has not been able to
secure buyers to date. The lease amendment will allow the tenant to extend the lease
termination period by paying a monthly fee to the County, permitting the tenant
additional time to secure buyers during this difficult economic time. The lease
amendment will defer the security deposit payment and lease term commencement date
to reflect the delayed start in construction.
CONSEQUENCE OF NEGATIVE ACTION:
Not granting an extension to tenant’s lease termination option will result in termination of
the project and a delay in developing a vacant and underutilized site at Buchanan Field
Airport. Such a delay will negatively impact general aviation aircraft facilities, services,
Airport demand needs and the Airport Enterprise Fund and County General Fund.
ATTACHMENTS
Lease Amendment