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HomeMy WebLinkAboutMINUTES - 08092011 - C.09RECOMMENDATION(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 Reach Air Medical Services (Reach), LLC, as Tenant, that relates to the lease of 5005 Marsh Drive, Pacheco Area. FISCAL IMPACT: 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 extends the term for three years plus up to seven (7) additional one-year lease extensions. The ground rent for the first two years will be $7,160.96 per month (or $85,931.52 per year) and every year subsequent will increase annually by the CPI inflater. BACKGROUND: On December 2, 2006, the Board authorized execution of a lease between Contra Costa County and Mediplane, Inc., dba Reach, and replaced and superseded the lease dated May APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/09/2011 APPROVED AS RECOMMENDED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: August 9, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: Carrie Del Bonta, Deputy cc: C. 9 To:Board of Supervisors From:Keith Freitas, Airports Director Date:August 9, 2011 Contra Costa County Subject:Approve and Authorize First Amendment to Lease with Reach Air Medical Services, LLC at Buchanan Field Airport. BACKGROUND: (CONT'D) 19, 1998. The County leased approximately 4,700 square feet of land, commonly known as 5005 Marsh Drive, on the north side of Buchanan Field Airport for the operation of a medical air transport business. The tenant constructed a twenty-four foot by sixty foot (24’ x 60’) modular building and two (2) ten foot by ten foot (10’ x 10’) sheds and operates an air ambulance company on their leased premises. On November 3, 2009, the Board authorized a lease assignment from Mediplane, Inc. dba Reach, to Reach Air Medical Services, LLC, a California limited liability company. The original tenant, Mediplane, Inc. dba Reach, converted from a corporation to a limited liability company and assigned all their rights and obligations under the lease to Reach Air Medical Services, LLC. This lease amendment will permit those necessary medical air services to continue until 2014 with potential lease extensions opportunities to 2021. This general aviation focus is consistent with the policies identified within the Buchanan Field Airport Master Plan and has been determined to be in compliance with the General Plan. CONSEQUENCE OF NEGATIVE ACTION: Delay in approving the lease amendment could result in an interruption of necessary medical air transport services for the County and surrounding areas. Further, a delay negatively impacts general aviation aircraft facilities, services, Airport demand needs and the Airport Enterprise Fund and County General Fund. CHILDREN'S IMPACT STATEMENT: Not Applicable ATTACHMENTS Lease Amendment