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HomeMy WebLinkAboutMINUTES - 05202008 - C.7 (;7 TO: BOARD OF SUPERVISORS ,• nt a ,,,.. ' FROM: KEITH FREITAS, DIRECTOR OF AIRPORTS Costa DATE: Ma ,0, :008 ��y County SUBJECT: APPROVE and AUTHORIZE the Director of Airports to execute a Consent to Assignment of Concord Jet Service, inc.'s Ground Lease to TDMC, LLC; a Third Amendment to Lease with TDMC.LLC;an Option for'I'DMC,LLC to enter into an executive hangar lease;a Memorandum of Lease; and to consent to a Reciprocal Access Agreement. Buchanan Field Airport, Pacheco.Area (District IV). Specific Request(s) or Recommendation(s) & Background & Justification I. RECOMMENDED ACTION: APPROVE and AUTHORIZE the Director of Airports, or designee, to EXECUTE a Consent to Assignment of Ground Lease for a fixed based operation on the premises located at 700 Sally Ride Drive from Concord Jet Service,Inc.to TDMC,LLC,and to process all other related necessary paperwork to effect the assignment; and APPROVE and AUTHORIZE the Director of Airports,or designee,to EXECUTE a Third Amendment to the assigned lease between the County,as lessor,and"TDMC,LLC,as tenant;to modify the legal description of the leased premises; and APPROVE and AUTHORIZE the Director of Airports,or designee,to EXECUTE an Option for TDMC,. LLC to enter into a new executive hangar lease by the year 2014; and APPROVE and AUTHORIZE the Director of Airports, or designee, to EXECUTE a Memorandum of Lease between County, as lessor, and TDMC, LLC as Tenant; and APPROVE and AUTHORIZE the Director of Airports,or designee,to consent,as Lessor,to a Reciprocal Access Agreement between TDMC,LLC and Concord.let Services,Inc.for reciprocal,non-exclusive rights of ingress over and across certain portions of the parties' respective leaseho premises. Continued on Attachment: \ SIGNATURE: ECOMMENDATION OF COUNTV ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTEE PROVE OTHER SIGNATURE(S): qr,� 4A.,-Oz� ACTION OF BOA)k ON APPROVED AS RECOMMENDEDX OTHER VOTE OF SUPER ORS UNANIMOUS(ABSENT ) AYES: NOES: I hereby certify that this is a true and correct copy of an ABSENT: ABSTAIN: action taken and entered on the minutes of the Board of I-1:\PSAIcase.bos Supervisors on the date shown. Orig.Div: Public Works(Airports Division) / Contact: Beth Lee. Phone(925)646-5722 ATTESTED: cc: County Administrator County Counsel JOHN CULLEN, Clerk of the Board of Supervisors and Community Development County Administrator Public Works Director Public Works Accounting Federal Aviation Administration Public Works Real Property By Deputy General Services Lease Management SUBJECT: Authorization to Consent to Assignment of Long-Term Lease, Execute a Third Lease Amendment and Grant Option to Enter Into Lease, Buchanan Field Airport DATE: May 20, 2008 PACE: 2 II. FINANCIAL IMPACT: There is no negative impact on the General Fund.The Airport Enterprise Fund will receive lease rental and other revenues and the County General Fund will receive property,sales and possessory interest tax revenues from this development. 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"). On April 10, 2007, the Board approved a First Amendment to Lease which accomplished two goals;'it defined the Tenant's allowable maintenance activities at the facility for hangar construction and operations consistent with fire suppression guidelines,and it extended the construction rent period through December 2007 when the project was expected to be completed. In January 2008, the Board approved a Second Amendment to Lease that allowed the Tenant to delay completion of the office space until April 5, 2014, as required to operate as a Fixed Base Operator(FBO). The amendment also increased the applicable ground rent to a level that is comparable with other non-FBO tenants at Buchanan Field Airport. The requested actions under this Board Order are: A. Authorization to Consent to Assignment of Lease. The owner of Concord Jet Services, Inc. has entered into a Sale and Purchase Agreement to sell the new hangar to TDMC, LLC. The sale of the hangar requires assignment of the ground lease and County's consent to the assignment."This Board action would authorize the Director of Airports to execute a Consent to assignment of the lease. Such authorization is appropriate on the basis that the purchaser of the hangar is capable of meeting the financial and business requirements to perform under the Lease. B. Authorization to Amend Lease. An error was found in the legal description in the lease between Contra Costa County and Concord Jet Services, Inc. whereby there is a nine (9) foot gap between lease line and adjacent roadway. This amendment will incorporate a revised legal description so that leasehold lines are properly depicted. C. Authorization to Grant Option to Enter Into Executive Hangar Lease. The Second Lease Amendment provided the Tenant additional time to complete phase 3 improvements necessary to operate as a fixed based operator. If development of office, shop and service space was not completed by April 5, 2014, the tenant would be in default tinder the lease and the County could take action to terminate the 1`130 lease. The new owner,TDMC, LLC,wishes to preserve the flexibility to operate as an executive hangar tenant if it chooses not to complete the phase 3 improvements by April 5,2014. Therefore,as a condition of the assignment of the ground lease,TDMC, LLC also requests an option to enter into a new executive hangar lease should they decide not to complete the improvements and operate as a Fixed Base Operator within the first ten(10)years of the lease. SUBJECT: Authorization to Consent to Assignment of Long-Term Lease, Execute a"Third Lease Amendment and Grant Option to Enter Into Lease, Buchanan Field Airport DATE: May 20, 2008 PAGE: 3 D. Authorization to Execute a Memorandum of Lease between County and TDMC. LLC. Recording a Memorandum of Ground Lease will give notice to third parties of the ground lease. E. Authorization to Consent to Reciprocal Access Agreement. The County's consent to the access agreement between "TDMC. LLC and Concord Jet Services, Inc. will allow both tenants to use each other's driveway access to Sally Ride Drive since they occupy adjacent premises. As all of the above recommended actions are conditions of or related to the assignment of lease from Concord Jet Services, Inc. to TDMC, LLC, the Board must either approve all actions or deny all actions. IV. CONSEQUENCES OF NEGATIVE ACTION: If County does not consent to the assignment of the lease to TDMC, LLC,the purchase and sale agreement of the hangar between Concord Jet Services, Inc. and TDMC, LLC will fall apart.