Agenda

Return

C. 7

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	January 7, 2020

Contra

Costa

County

Subject:

APPROVAL of Consent to Assignment of Lease & Third Amendment to Lease between Lithina Real Estate, Inc and Future Automotive Concord, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/07/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V 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: January 7, 2020
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County, a consent to assignment of lease between the County and the current tenant, Lithia Real Estate, Inc., and the new tenant, Future Automotive Concord, INC, to assign his lease of County-owned property located at 4901 Marsh Drive, Concord to Future Automotive Concord, Inc.


APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County a third amendment to the Lease that modifies the term and rent provisions of the 1985 lease.

FISCAL IMPACT:

There is no negative impact on the General Fund. 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.

BACKGROUND:

Under a ground lease dated October 20, 1985, the County leased the subject property for the purpose of automotive sales and servicing at Buchanan Field Airport. The lease was assigned to Lithia Real Estate, Inc. on October 6, 2015. Lithia Real Estate now desires to assign all of his interest in the lease to Future Automotive Concord, Inc. An assignment of the lease requires the prior written consent of the County. Staff recommends (1) consent to assignment, and (2) execution of an amendment to the lease to modify the term and rent provisions to make them consistent with financing standards.

CONSEQUENCE OF NEGATIVE ACTION:

Lithia Real Estate, Inc. will not be able to assign its interest in the lease.