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HomeMy WebLinkAboutMINUTES - 04222014 - C.10RECOMMENDATION(S): APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of the County, a Consent to Leasehold Encumbrance and Estoppel between the County, as Landlord, Byron Aviation Services Limited, as Tenant, and Scott Valley Bank, as Tenant’s Lender, for leased premises, commonly known as 7500 Falcon Way, at the Byron Airport. FISCAL IMPACT: The Airport Enterprise Fund will 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: In August 1995, the County entered into a lease with Byron Aviation Services Limited (Tenant) for the construction of twenty-two, fifty-foot by fifty-foot hangars at the Byron Airport. The Lease permits the Tenant to borrow money for the improvements and to secure the APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 04/22/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Beth Lee (844) 359-8687 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: April 22, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stacey M. Boyd, Deputy cc: C. 10 To:Board of Supervisors From:Keith Freitas, Airports Director Date:April 22, 2014 Contra Costa County Subject:Approve & Authorize County’s Consent to Leasehold Encumbrance and Estoppel for Byron Aviation Services Limited for Property at 7500 Falcon Way, Byron BACKGROUND: (CONT'D) loan with a leasehold mortgage, provided only leasehold mortgage is outstanding at any time. In March 2004, the County, with the Board’s consent, entered into a Estoppel Certificate and Consent, through which the County consented to a loan from Scott Valley Bank (the Bank) to the Tenant, secured by a leasehold mortgage. The loan was structured with a 20-year amortization schedule and a ten-year term. The Bank and the Tenant now desire to modify and extend the original 2004 loan and have requested the County’s consent. This action only modifies the existing loan. Upon completion of the refinancing, only one leasehold mortgage will be in effect. CONSEQUENCE OF NEGATIVE ACTION: If the County fails to grant its consent, the Bank may not be willing to complete the refinancing, jeopardizing the Tenant’s ability to meet its obligations under the lease. CHILDREN'S IMPACT STATEMENT: N/A ATTACHMENTS Estoppel and Consent