Agenda

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C. 17

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	October 6, 2015

Contra

Costa

County

Subject:

Approval of Consent to Assignment of Lease between Contra Costa County & Crown Automotive, Inc. & Lithia Real Estate, Inc. located at 4901 Marsh Dr.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 10/06/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, 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: October 6, 2015
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, Crown Automotive, Inc., and the new tenant, Lithia Motors, Inc. Pacheco Area

FISCAL IMPACT:

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:

The subject property is used in the operation of an automobile dealership, including the sale of new and used vehicles, vehicle leasing and rental, vehicle repairs, and other related services. Crown Automotive, Inc. now desires to assign all of its interest in the lease to Lithia Real Estate, Inc. An assignment of the lease requires the prior written consent of the County. Under the terms of the lease, if the County refuses its consent, the lessee may terminate the lease with a 30 day notice to the County.

BACKGROUND: (CONT'D)

This action authorizes consent to the assignment. This action does not amend or alter the terms of the existing lease. The lease will provide significant revenue to the Airport Enterprise Fund and the County General Fund. The lease is comparable to other executed leases and is consistent with the Airport Master Plan.

CONSEQUENCE OF NEGATIVE ACTION:

The County will not consent to the assignment of the lease and Crown Automotive, Inc. will have the option to terminate the lease.