RECOMMENDATION(S):
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 The Hangars at Buchanan LLC, as Tenant, that relates to the lease of approximately 0.86 acres located north of the Airport Offices. Pacheco Area.
FISCAL IMPACT:
There is no negative impact on the General Fund. The existing terms of the lease allow the tenant to terminate the lease on or before September 1, 2012. If the lease is not terminated, 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 this development of hangars at this site. The lease amendment eliminates a one-time extension fee of $500 and reduces the amount of rent payable in the first twelve months following the completion of construction from $1,498.47 per month to $1,092.63 per month. Ground rent will increase annually by the CPI inflator. Every 10 years the lease will be revalued based on market appraisals.
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