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HomeMy WebLinkAboutMINUTES - 10101995 - C14 TO: BOARD OF SUPERVISORS FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR DATE: October 10, 1995 SUBJECT: Approval of Lease with JR Leasing, Inc., dba Concord Airport Liquidation Auctions, Inc., Concord area. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION 1. Recommended Action: AUTHORIZE the Public Works Director, or his designee, to enter into a lease for an auction and car sales facility at Contra Costa County Buchanan Field Airport. II. Financiallmpact: The lease requires a minimum guarantee of$36,000 per year. Presently a conservative estimate on the agreement is that this should produce in excess of$100,000 per year to the Airport Enterprise Fund. In addition, sales tax will be paid on car sales of no less than $5,000,000 per year. This will generate significant revenues to both the Enterprise Fund and the General Fund. III. Reasons for Recommendations and Background: JR Leasing is better known as Budget Car Sales and has been a major tenant on Buchanan Field Airport for approximately twelve years. Budget Car Sales is one of the top revenue generators for Buchanan Field Airport, as well as being one of the top sales tax revenue generators for the County General Fund. The owner of JR Leasing, Mr. Rawley Graybel, has been working with the Airport staff over the past year to develop a car auction plan on a portion of what is known as "Parcel B" on the west side of the Airport. Initially the auction will take place one time per month. Also, in the initial stages, there will be some "speciality sales" such as Credit Union sales. Continued on Attachment: X SIGNATURE. RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION O OARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Doti APPROVED AS RECOMMENDED VOTHER VOTE OF SUPERVISORS V/UNANIMOUS(ABSENT rTr _) AYES: NOES: ABSENT: ABSTAIN: 1 hereby certify that this is'j tru0 and correct COPY Of an action taken and entered on the minutes of the HEW:kd Board of Supervisors on the date shown. c:\BOl0.t10 ATTESTED: C a� `J / ' qq-� PHIL BATCHELOR,Clerk of the Board Orig Div: Airports(Contact-H. Wight 646-5722) of Supervisors and County Administrator cc: County Administrator Public Works Director IajY 'Deputy Public Works Accounting Auditor/Controller Aviation Advisory Committee Federal Aviation Administration Approval of Lease with JR Leasing, Inc., dba Concord Airport Liquidation Auctions, Inc. October 10, 1995 Page Two The project includes the development of 4.9 acres of land as shown on the attached Exhibit. Space will be provided on site for approximately 458 vehicles, 252 of which will be for sale at the auction and 206 spaces for customer vehicles. Approximately half of the site (the side closest to the Airport) will have general area security lighting. The lights will only be on during times when vehicles are stored on the premises. The lighting will be shielded or directed such that no fugitive lighting will bother the mobile home area to the west. The premises will also have an eight-foot chain link fence with security wire at the top. The vehicles will be brought to the site beginning approximately the Tuesday prior to the sale. Most vehicles will be driven to the site but some may be brought by car carrier trucks. Vehicles will be available for inspection on the Friday prior to the auction. Vehicles will be locked on the day of the auction and no test driving of vehicles will be permitted at any time. Vehicles must be picked up by the purchaser no later than 5:00 p.m. on the following Monday. Any unsold vehicles remaining on the site by Tuesday will be removed. A portable (truck mounted) low powered unidirectional public address system will be used to conduct the auction and will be moved from vehicle to vehicle as the auction progresses. At all times the PA System will be directed away from the mobile home parks on the west side of Marsh Drive. The auction activities will be conducted on the half of the site closest to the Airport. An area along the easterly property line will be set aside for the parking of food service trucks which will remain on the site only for the duration of the actual auctions. Overflow parking will be allowed on adjacent dirt areas and no overflow parking will be allowed along Marsh Drive. If overflow parking is required on any kind of consistent basis, the developer will expand the size of the facilities. The speciality sales such as Credit Union sales of cars will not be an auction. This will be a direct sale of used cars, in the more traditional sense and will take place all during one day. This will also be conducted on a Saturday. The Manager of Airports and the Assistant Manager of Airports have met with the Pacheco Municipal Advisory Committee (PMAC) and the Pacheco Town Council on two separate occasions. On the first occasion, (April 12, 1995), the Manager of Airports presented the plan in considerable detail and answered questions relating to the proposed lease and environmental issues. On the second occasion (June 14, 1995), the Assistant Manager of Airports attended the PMAC/Town Council meeting and reviewed the proposed auction once again. The original Airport Environmental Impact Report (EIR) was certified by the Contra Costa County Board of Supervisors in December, 1990. This was in conjunction with the Airport Master Plan. An Addendum to the EIR was done May 31, 1995. The original EIR and Addendum are attached. Anyone wishing to review the EIR, may do so in the Manager of Airport's Office. The Addendum indicates that there is no significant impact. The auction facility will be of a significantly lower use than was originally contemplated in the 1990 EIR. The Advance Planning Section of Community Development Department agrees with the findings. On October 4, 1995, Airport and Public Works staff met with representatives of Pacheco and the Mobile Home Parks. Several revisions to the lease were agreed upon. The final draft is acceptable to JR Leasing, Inc. Airport and Public Works staff has agreed to meet periodically.with representatives of Pacheco and the Mobile Home Parks relative to this matter. IV. CONSEQUENCES OF NEGATIVE ACTION: This disapproval of this agreement will have a significant negative financial impact on both the Enterprise Fund and the General Fund.