HomeMy WebLinkAboutMINUTES - 03012011 - C.22RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, on behalf of the
County, to (i) terminate the lease between the County and APEX Aviation, Inc. (“APEX”)
dated March 15, 2005, and (ii) initiate an unlawful detainer proceeding against APEX to
regain possession of 1448 and 1450 Sally Ride Drive, Buchanan Field Airport.
FISCAL IMPACT:
There is no fiscal impact on the General Fund.
BACKGROUND:
On March 15, 2005, the County and APEX entered into a lease for the property located at
1448 and 1450 Sally Ride Drive in Concord, California (the “Lease”). Apex has provided
turbine aircraft maintenance, storage detailing, line service, turbine aircraft management,
charter of aircraft, and turbine aircraft acquisition and sales at these premises. The services
provided by Apex put them into a category of Auxiliary Aviation. Due to adverse economic
impacts, Apex has experienced significant financial loss and has fallen six (6) months
behind in payment of ground rent, final lease extension payment, and other associated fees.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/01/2011 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
Karen Mitchoff, 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: March 1, 2011
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C.22
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:March 1, 2011
Contra
Costa
County
Subject:APPROVE AND AUTHORIZE LEASE TERMINATION AND INITIATION OF UNLAWFUL
DETAINER PROCEEDING AGAINST APEX AVIATION, INC., CONCORD AREA
BACKGROUND: (CONT'D)
On December 14, 2010, the Board of Supervisors approved a Board Order to initiate the
lease termination process. Subsequently, Airport staff has been working with Apex to devise
a repayment plan to bring them current without jeopardizing their ability to remain in
business. Most unfortunately, despite all efforts, Apex remains unable to uphold their
financial obligations. As a result, it is necessary to initiate the unlawful detainer process.
The Lease requires APEX to pay $59,662 as a sixth and final lease extension payment on
January 1, 2011. APEX has not done so. The Lease requires APEX to make monthly lease
payments of specified amounts and to pay annual sanitary fees. To date, APEX has not
made rent payments at all for six (6) months and has not paid the annual sanitary fee. As a
result, in addition to the unpaid lease extension payment, APEX owes the County
$47,756.64 in unpaid rent, $3,752.72 for accumulated late charges through March 1, 2011,
$1,917.32 in concession fees, and $241.92 in sanitary fees. The total amount APEX owes
the County is $113,330.60 as of March 1, 2011. For these reasons, APEX is in default of the
Lease.
CONSEQUENCE OF NEGATIVE ACTION:
A negative action will result in an accumulation of bad debt to the Airport Enterprise Fund
whereby a private party is using County property without providing compensation. A delay
in action will negatively impact the Airport Enterprise Fund.
CHILDREN'S IMPACT STATEMENT:
Not Applicable