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HomeMy WebLinkAboutMINUTES - 03152011 - C.13RECOMMENDATION(S): APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute a Consent to Assignment on behalf of the County, allowing the owner of Pacific States Aviation, Inc., a tenant at Buchanan Field Airport, to sell his ownership interest in the company to new investors. FISCAL IMPACT: This action will result in a transaction fee of $2,500 payable to the Airport Enterprise Fund, which will also continue to receive lease and other revenues provided for in the lease. The County General Fund will continue to receive property, sales and possessory interest tax revenues from the lease. BACKGROUND: Under the Amended and Restated Lease between the County and Pacific States Aviation, Inc. (the “Company”) dated February 28, 2006 (the “Lease”), if the owner of the Company wants to sell his ownership interest in the Company, the County must consent to the sale. The Company operates APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/15/2011 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 ABSENT: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 15, 2011 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:March 15, 2011 Contra Costa County Subject:Consent to an assignment that permits the sale of the common stock of Pacific States Aviation, Inc., a tenant under a long-term lease at Buchanan Fiel BACKGROUND: (CONT'D) a Fixed Base Operator facility at Buchanan Field Airport. The current owner of the Company has negotiated the sale of all of the common stock of the Company to new investors. The sale of the Company does not alter the Company’s obligations under the Lease. Following the sale of the Company, the Lease will remain in full force and effect. The County’s consent to the sale of the Company will enable the current owner to liquidate his investment in the Company. No interruption in the services provided by the Company at Buchanan Field Airport is expected as a result of the sale. Airport staff is satisfied that under new ownership the Company will continue to be able to meet its obligations under the Lease. Over its remaining term, the Lease will provide significant revenue to the Airport Enterprise Fund and County General Fund. The Lease is comparable to other executed leases and is consistent with the Airport Master Plan. CONSEQUENCE OF NEGATIVE ACTION: The County will not consent to sale of the Company and ownership of the Company will remain unchanged. CHILDREN'S IMPACT STATEMENT: Not Applicable ATTACHMENTS Consent to Assignment