HomeMy WebLinkAboutMINUTES - 12202005 - C.17 (2) r.
i' TO: BOARD OF SUPERVISORS contra
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR costa
DATE: December20, 2005 A county
SUBJECT: Authorization to Execute a Long-Term Lease with Seecon Builders, Inc. for a Buchanan Field
Airport Development Project , Pacheco area.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOM MNDED ACTION:
APPROVE and AUTHORIZE the Public Works Director,or designee,to execute,on behalf of the County,a 40-year
ground lease between the County, as Landlord, and Seecon Builders, Inc. for the lease and development on
approximately 2 acres located north of the Airport Offices at 550 Sally Ride Drive.
FISCAL IMPACT:
There is no negative impact on the General Fund. The Airport Enterprise Fund will receive lease and other revenues
and the County General Fund will receive property and possessory interest tax revenues from this development. The
ground rent will begin at$24,000 per year and increase annually to$99,999.96 per year in year 9. Every 10 years the
lease will be revalued based on market appraisals and use a CPI inflator in intervening years. The fuel flowage fee
is $0.08 per gallon and increases by$0.005 per gallon.
Continued on Attachment: ® SIGNATURE: ('%
❑.RECOMMENDATION OF COUNTY ADMINISTRATOR ❑ REC NDATION OF BOARD COMMITTEE
❑ APPROVE ❑ OTHER
SIGNATURE(S):
LCL°�7'YJ�@Ya� .2t7d;S
ACTION OF BOARD ON �
APPROVED AS RECOMMENDED OTHER ❑
V07 OF SUPERVISORS
_✓ UNANIMOUS(ABSENT
AYES: NOES:
ABSENT: ABSTAIN: 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.
g:\BO\Rental Agreement 12-6
Orig.Div:Public Works(Airport Division) ATTESTED: / i�0206z6—
Contact: Betts lee) JOHN SWEETEN, Clerk of the Board of Supervisors and County
cc: County Administrator
Autditor-Controller Administrator
Community Development r
Public Works Director -
Public Works Accounting By ,Deputy
Federal Aviation Administration
SUBJECT: Authorization to Execute a Lease, Buchanan Field Airport.
DATE: December 20, 2005
PAGE: 2 of 2
REASONS FOR RECOMMENDATIONS AND BACKGROUND:
The Seecon Builders,Inc. development area is approximately 2 acres of land owned by the County and located on
the westerly side of Sally Ride Drive and north of the County Airport offices as shown on the attached property map.
The parcel is adjacent to the Buchanan Field runways and is designated for aviation use on the Buchanan Field
Master Plan. The parcel is under the jurisdiction of the Buchanan Field Airport and entirely within the
unincorporated County.
On March 29, 2004, The Contra Costa County Public Works-Airport Division received a letter of intent form a
private party to develop the project on the subject site. The proposed development included approximately 37,500
square feet of hanger space and 1,750 square feet of office and storage space. The letter of interest did not include
business elements necessary to solicit additional development interest. On April 19,2004,Airport staff received a
secondary letter of interest that contained more specific business and development information for the proposed
project.
In accordance with prior discussions with the Federal Aviation Administration's (FAA) Airports District Office
(ADO) regarding development at Buchanan Field, the County notified existing commercial tenants at Buchanan
Field and Byron Airport to solicit other competitive interest in the property. The County also published a
solicitation advertisement in the Contra Costa Times and San Francisco Chronicle,business section in the Sunday
editions on May 9, 2004, to broaden the solicitation of competitive interest. The solicitation process provided a
response deadline of June 5,2004,to notify the County of any additional competitive interests in the property. The
County received no additional letters of interest.
On June 22, 2004, the Board of Supervisors authorized staff to proceed with negotiations of a long-term ground
lease for the subject property with the one interested party.
On June 30, 2005, the County received a letter from the interested party indicating that the prime contact, Robert
Ferrero,had developed significant health problems and his joint venture business partner,Seecon Builders,Inc.,was
assuming the lead role for the development.
On July 26, 2005, the Board of Supervisors adopted the Negative Declaration in compliance with the California
Environmental Quality Act,and authorized staff to advertise the Buchanan development project at their discretion.
County staff has negotiated lease and development terms with Seecon Builders, Inc. and the project is ready to
proceed to implementation. The lease term is forty(40)years. The lease will provide both significant lease 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.
CONSEQUENCES OF NEGATIVE ACTION:
The County General Fund and the Airport Enterprise Fund would not realize the additional revenues. The County-
owned land would remain vacant and may negatively impact general aviation aircraft facilities,services and Airport
demand needs.
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