TDMC, LLC (Tenant) and the County are parties to a ground lease dated April 5, 2005 (Lease) under which the Tenant leased 5.3 acres at 700 Sally Ride Drive (Premises). The rent received from the Lease represents approximately 5% of the Airport Enterprise Fund’s annual revenue.
As permitted by the Lease, the original tenant under the Lease constructed an approximately 39,000 square foot hangar on the Premises. Also as permitted by the Lease, on December 31, 2015, the Tenant gave written notice terminating the Lease effective December 31, 2016. In response to the termination of the Lease, on November 9, 2016, Airports staff broadly distributed (over 800 printed mail and emails) a marketing advertisement for the upcoming aircraft hangar availability. As a response to the aggressive marketing effort, Airports Division staff received a letter of interest to lease the Premises on November 9, 2016, and another on November 11, 2016.
The approved selection process by the Board of Supervisors on May 23, 2006, for projects with a competitive interest includes: (1) request for project information submittals and development/lease deposit; (2) convening a selection committee; (3) reviewing, interviewing, if deemed necessary, and ranking the proposals; (4) seeking Board approval of ranking order and authorization to negotiate lease terms; (5) facilitating meetings between project developer/sponsor and stakeholders; and (6) seeking Board approval of final lease.
Upon receipt of the letters of interest, on November 15, 2016, Airports staff initiated the selection process by sending notices for competitive interest to lease the Premises to businesses at both airports and to our interested party list. The solicitation provided a response deadline of 5:00 p.m. on Tuesday, December 6, 2016.
Competitive interest responses were required to include specified detailed information related to the proposed use of the Premises, the proposed business use or other business activities, desired lease term details and supplemental information, proposed building improvements, and a performance guarantee cashier’s check in the amount of $10,000. The performance guarantee would be returned to unsuccessful party(ies) at the completion of the selection process. For the successful candidate, the guarantee would be applied to cover the cost of the projects’ lease development process and any remaining funds could be applied to the ground rent or refunded. The solicitation also advised recipients that the County may elect to negotiate with another candidate, in priority ranked order, if we are unable to consummate a lease with the top ranked candidate.
The County received three (3) complete competitive interest information response proposals by the deadline. A selection committee (comprised of County staff, an Aviation Advisory Committee member and a District IV staff) reviewed and ranked the proposals. All proposals were excellent and worthy of consideration which made the ranking determination difficult for selection committee members. The proposal ranking outcome was determined by the following factors:
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Compatibility of proposed use(s) with governing policies
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Proposed financial and lease terms (to provide the highest positive impact to the Airport Enterprise Fund)
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Proposed enhancements to the Premises
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Track record and experience relative to proposed use of the Premises
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Proposed schedule and timing
Applying the above factors, the proposal submitted by The Conco Companies was top ranked by the selection committee. Pacific States Aviation was ranked second and Blackhawk Aviation and the Vietnam Helicopters Museum was ranked third.
Selection of a leasehold tenant would expand economic development activity at the Buchanan Field Airport and lead to increased revenues to the Airport Enterprise Fund and County General Fund. The proposed use of the Premises must be consistent with the Airport Master Plan for consideration. The proposed use and location are consistent with the Buchanan Field Airport Master Plan and the Mitigated Negative Declaration that was adopted by the Board of Supervisors on October 24, 2008.
Unless and until a final lease agreement is fully executed by all parties, this Board Order, any draft lease agreement, other communications or conduct of the parties shall have absolutely no legal effect, may not be used to impose any legally binding obligation on the County and may not be used as evidence of any oral or implied agreement between the parties or as evidence of the terms and conditions of any implied agreement.
Delay in approving the lease term negotiations will result in a delay of securing a tenant for the Premises which will negatively impact the Airport Enterprise Fund.