Agenda

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C. 10

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	February 26, 2019

Contra

Costa

County

Subject:

Contra Costa Airports-Authorization to Negotiate Long-Term Lease for County-Owned Aircraft Maintenance Bldg. at Byron Airport, Byron Area (District 3)

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/26/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Diane Burgis, District III 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: February 26, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

AUTHORIZE the Director of Airports, or designee, to negotiate a long-term ground lease between the County, as Landlord, and one of the two parties, in priority ranking order, that have submitted a final proposal to lease a 7,500 square foot County-owned aircraft maintenance hangar building on the south side of Byron Airport.

FISCAL IMPACT:

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

BACKGROUND:

The 7,500 square foot aircraft maintenance hangar building is owned by the County and located on the south side of Byron Airport, across the road from the Airport office building. The aircraft maintenance hangar building is designated for aviation use on the Byron Airport Master Plan.

The Contra Costa County Public Works Department - Airports Division received a letter of interest to lease the building for an aviation business. In accordance with the Airport Division’s standard practices and at the request of the Airport District Office (ADO), on December 5, 2018, the Airport Division solicited for competitive interest in leasing the building prior to making a tenant 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 for notification of development and use of County airport buildings at either of the County airports. The County received one additional letter of interest to lease this building.

Consistent with the master developer selection process that was approved by the Board of Supervisors on May 23, 2006, projects with a competitive interest are to be reviewed and ranked by a selection committee. The selection committee, consisting of members of the Aviation Advisory Committee and County staff, reviewed and ranked the proposals. The proposal ranking outcome was determined by the following factors:

Financial and lease terms
Use of the hangar building and expansion of aviation services
Track record and experience
Compatibility with land use policies
Enhancements to the building

Applying the above factors, the proposal submitted by Skyview Aviation was top ranked by the selection committee. The proposal received from West Coast Air Sports, Inc. was ranked second.

Negotiation of lease terms would expand economic activity, provide additional revenues to the Airport Enterprise Fund, and expand aviation-related business services at the Byron Airport. A business proposal must be consistent with the Airport Master Plan and General Plan for consideration. The proposed aviation development is consistent with the Byron Airport Master Plan and General Plan.

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 leasing the maintenance hangar will result in a delay in the expansion of aviation services at Byron Airport and may negatively impact the Airport Enterprise Fund and County General Fund.