Agenda

Return

C. 9

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	October 18, 2016

Contra

Costa

County

Subject:

Approve and Authorize the Director of Airports, or designee, to execute a lease w/ Gerald Valente for property adjacent to 2285 Diamond Blvd, Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 10/18/2016

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 18, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of the County, a 30-year ground lease between the County, as Lessor, and Gerald Valente and the Jared A. Monez 1994 Trust, as Tenant, for the lease of approximately 2 acres of real property that is adjacent to 2285 Diamond Boulevard, Concord.

FISCAL IMPACT:

The Airport Enterprise Fund will receive lease and other revenue and the County General Fund will receive property, sales and possessory interest tax revenues from the Lease. The ground rent will begin at $6,225.00 per month (or $74,700.00 per year) and increase annually by the CPI inflator. Every 10 years the lease will be revalued based using a market revaluation process.

BACKGROUND:

This lease replaces a lease dated March 16, 1965 between the parties for the same property. The original lease included a right of first refusal that allowed the tenant to enter into a new lease with the County once the original lease ended. The tenant exercised the right of first refusal.

BACKGROUND: (CONT'D)

Under the original lease and the current lease, the tenant is permitted to construct, operate, and maintain open air vehicle parking and landscaping and to operate a new car dealership on the premises. This use is consistent with the approved Buchanan Field Master Plan. The term of the new lease is expected to be 30 years. The initial term is five years, commencing September 1, 2016 and ending on April 30, 2021. After the initial term, the tenant has five 5-year options to extend the lease.

The lease will provide additional fees and sales tax revenue to both the Airport Enterprise Fund and the County General Fund.

CONSEQUENCE OF NEGATIVE ACTION:

The Airport Enterprise Fund and the County General Fund would not realize the additional revenues.