HomeMy WebLinkAboutMINUTES - 04102007 - C.13 j TO: }BOARD OF SUPERVISORS Contra
FROM: KEITH FREITAS, DIRECTOR OF AIRPORTS Costa C
DATE: April 10, 2007 County
rA couzz'f't
SUBJECT: APPROVE AND AUTHORIZE AMENDMENT TO LONG-TERM LEASE WITH CONCORD JET
SERVICE, INC., PACHECO AREA (DISTRICT IV)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
APPROVE and AUTHORIZE the Director of Airports, or designee, to EXECUTE, on behalf of the
County, a lease amendment between the County, as lessor, and Concord Jet Service, Inc., as tenant.
H. FINANCIAL 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,sales and possessory interest tax revenues from
this development. The Airport Enterprise Fund will receive $2,870 less per month in Ground Rent due to
this adjustment. The maximum period of reduced Ground Rent is 8 months and will not exceed $22,960.
Continued on Attachment: X SIGNATURE:
_kRVCOMMENDATION OF COUNTY ADMINISTRATOR
RECOMMENDATION OF BOARD COMMITTEE
^�"PROVE —OTHER
SIGNATURES
ACTION OF B77 ►APPROVED AS RECOMMENDED OTHER
7OF SUPERVISORS I hereby certify that this is a true and correct copy of an action taken
UNANIMOUS(ABSENT and entered on.the minutes of the Board of Supervisors on the date
AYES: NOES: shown.
ABSENT:. ABSTAIN:
ATTESTED: �� Aqi �
Orig.Div: County AiTott: JOHN CULLEN,Clerk of the Board of Supervisors and County
Contact: Doreen Stockdale(925)646-5722
cc: County Administrator Administrator
Public Works Director
County Counsel
Federal Aviation Administration
By Deputy
SUBJECT: APPROVE AND AUTHORIZE AMENDMENT TO LONG-TERM LEASE WITH CONCORD JET
SERVICE, INC., PACHECO AREA
DATE: April 10, 2007
PAGE: 2
III. REASONS FOR RECOMMENDATION/BACKGROUND:
On April 5, 2005, the Board authorized the Public Works Director to enter into a lease with Concord Jet
Service, Inc. (the "Tenant") for a term of forty years for the purpose of constructing and operating a fixed
base operator hangar and office area at Buchanan Field Airport (the "Lease").
Under the terms of the Lease, the Tenant has been paying construction period rent since May 2006, when
plans were submitted to obtain building permits. The Lease anticipates a maximum 12-month construction
period and requires that the construction period rent end by May 2007. Beginning May 1,2007,the Tenant
is obligated under the Lease to pay full ground rent.
The Tenant was unable to secure building permits due to issues involving hangar construction and the type
of fire suppression systems required for its development. These issues affected all airport development and
were resolved in March 2007, enabling the Tenant to secure building permits for its project.
The lease amendment will accomplish two goals; first to define the Tenant's allowable maintenance
activities at the facility for hangar construction and operations consistent with fire suppression guidelines,
and second to extend the construction rent period through December 2007 when the project is expected to be
completed.
IV. CONSEOUENCES OF NEGATIVE ACTION:
If the lease amendment is not executed by the parties, Concord Jet Service, Inc. will not be able to proceed
with its development since the lease contemplates maintenance activities requiring enhanced fire suppression
systems and it will be obligated to pay full ground rent during the construction period.