Agenda

Return

C. 14

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	December 4, 2018

Contra

Costa

County

Subject:

Contra Costa Airports - Authorize to Negotiate Ground Lease & Development Terms for Approx. 16 Acres of County-Owned Land-Buchanan Field Airport

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/04/2018

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: December 4, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

AUTHORIZE the Director of Airports, or designee, to negotiate a long-term ground lease and development terms between the County, as Landlord, and Montecito Development Company, LLC, as the developer, for approximately 16 acres of land on the west side of the Buchanan Field Airport.

FISCAL IMPACT:

There is no negative impact on the General Fund. The Airport Enterprise Fund would realize lease and other revenues. The County General Fund would realize sales tax and other revenues if a lease is successfully negotiated.

BACKGROUND:

The development site is approximately 16 acres of vacant land owned by the County and located on the west side of Buchanan Field Airport generally between Marsh Drive and Sally Ride Drive. The parcel is currently designated for aviation use on the existing Buchanan Field Airport Master Plan. However, the Airports Division is in process of updating the Airport Layout Plan and the associated aviation forecasts and facility needs analysis support re-designating it for non-aviation use. As such, the Airport Division submitted a request to the Federal Aviation Administration’s Airports District Office (ADO), which, if approved, will result in the parcel being re-designated for non-aviation use. An aviation use can be located on land that is designated for non-aviation use.

The Airport Division of the Contra Costa County Public Works Department - Airports Division received a letter of interest to lease and develop the property for non-aviation use.

In accordance with the Airport Division’s standard practices and at the request of the ADO, on October 25, 2018, the Airport Division solicited for competitive interest in developing the parcel prior to making a developer selection. This solicitation of competitive interest was transmitted to the current commercial tenants of both County airports and to those persons who have asked to be included on a list of developers interested in developing land at either of the County airports. The County did not receive any additional letters of interest to develop this property.

Consistent with the master developer selection process that was approved by the Board of Supervisors on May 23, 2006, projects without a competitive interest are to proceed with the traditional environmental review and lease development processes. The non-aviation development project will be presented to the Aviation Advisory Committee, the Airport Committee, and any other stakeholder to enhance community relations and collaborative relationships.

Development of this 16-acre vacant parcel would expand economic development activity at the Buchanan Field Airport and lead to increased revenues to the Airport Enterprise Fund. The proposal submitted for a non-aviation use, however, is subject to the Airport Division successfully completing the federal process in order for the FAA to approve the County’s request for re-designation of the site.

A business proposal must also be consistent with the General Plan for consideration. When the FAA issues a notice of intent to release the property for non-aviation use, Airports staff will work with the Department of Conservation and Development to assess consistency with the General Plan and, if necessary, initiate a General Plan Amendment.

The Board of Supervisors could consider approval of a non-aviation use lease at the Buchanan Field Airport after the ADO releases the property for non-aviation use and, if necessary, completion of a General Plan Amendment.

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.

CONSEQUENCE OF NEGATIVE ACTION:

Delay in initiating the developer selection process will result in a delay of developing vacant land at Buchanan Field Airport and may negatively impact the Airport Enterprise Fund and County General Fund.