HomeMy WebLinkAboutMINUTES - 10132015 - C.07RECOMMENDATION(S):
A. APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County, the
Consent to Assignment that will permit the County’s current tenant, NWK2, Inc., to assign its lease of the
County-owned property located at 1448-50 Sally Ride Drive, Concord (the Lease) to Concord Jet Services, Inc.
Pacheco Area
B. APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County an
amendment to the Lease to make its terms consistent with those of comparable airport leases.
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.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/13/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Candace Andersen, District II
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
Supervisor
Contact: Beth Lee, (925) 681-4200
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: October 13, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 7
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:October 13, 2015
Contra
Costa
County
Subject:Approval of Consent to Assign. of Lease between CCCounty, NWK2, Inc. & Concord Jet Serv. & Approval of 1st
Amend to Lease for Concord Jet Serv. at CCR
BACKGROUND:
The County originally entered into the Lease with APEX Aviation Corporation (APEX) in 2005 for the purposes
of providing specialty aviation services. As permitted by the Lease, APEX entered into a leasehold mortgage that
gave the lender a lien in the leasehold estate. The holder of the leasehold estate, Rabobank, N.A. (Bank)
foreclosed and assigned its interest in the Lease to an affiliate of the Bank, NWK2, Inc., on July 12, 2012.
NWK2 desires to assign all of its interest in the lease to Concord Jet Services, Inc. An assignment of the Lease
requires the written consent of the County. This action authorizes consent to the assignment.
The Lease has certain terms that are inconsistent with the terms of other airport leases. For example, the Lease
contains a maintenance improvement obligation that requires a minimum level of financial investment for
property maintenance, rather than determining what improvements are necessary based on a property inspection.
In addition, its “percentage rent and other additional rent” and “rental operations” provisions are not standard.
The proposed amendment will correct the date on which the revaluation of the rent occurs, modify the terms for
percentage rent and other additional rent, modify the type of operations permitted, modify the property
maintenance requirements and modify the terms under which the County may cancel the Lease, all in a manner
that will make the terms of the Lease consistent with those of other specialty aviation service leases that are in
effect at the Buchanan Field and Byron Airports.
CONSEQUENCE OF NEGATIVE ACTION:
NWK2, Inc. will not be able to assign its interest in the Lease and the Lease will continue to have provisions that
are not consistent with those of other comparable leases.
ATTACHMENTS
Consent to Assignment of Lease
First Amendment to Lease