Agenda

Return

C. 16

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

Contra

Costa

County

Subject:

Approve Director of Airports-Consent to Assig. Lease btwn CC County, Pacific States Aviation, Inc., and Threshold Technologies,Inc for property at CCR

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):

APPROVE and AUTHORIZE the Director of Airports, or designee, to execute a consent to assignment between the County and the current tenant, Pacific States Aviation, and the new tenant, to assign the lease of County-owned property located at 51 and 101 John Glenn Drive, Concord to Threshold Technologies, Inc. (100% Airport Enterprise Funds)

FISCAL IMPACT:

There is no negative impact on the General Fund. 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:

Under a ground lease dated February 25, 2006, the County leased the subject property to Pacific States Aviation, Inc. (PSA) for the purpose of providing services as a Fixed Base Operator (FBO) at Buchanan Field Airport. The PSA FBO has aviation service obligations that include a majority focus on services and activities for smaller (i.e., non-corporate) aviation users. In addition to the FBO business, PSA also owns and operates a flight school and maintenance business at Buchanan Field Airport.

PSA has entered into an asset purchase agreement with Threshold Technologies, Inc. (Threshold) for the sale of PSA’s FBO business and assets to Threshold. To carry out the sale, PSA must assign its lease with the County to Threshold. An assignment of the lease requires the prior written consent of the County. This Board action would authorize the Director of Airports to execute a consent to assignment of the Lease. Staff recommends the County consent to the assignment because Threshold is capable of satisfying the financial and business requirements of the Lease.

The Lease will provide significant revenue to the Airport Enterprise Fund and County General Fund. The Lease is comparable to other executed leases and is consistent with the Airport Master Plan.

CONSEQUENCE OF NEGATIVE ACTION:

PSA will not be able to assign the lease which will impair the sale of the business.