Agenda

Return

C. 10

To:	Board of Supervisors
From:	Director of Airports
Date:	February 1, 2022

Contra

Costa

County

Subject:

Long-Term Lease with Buchanan Field Self Storage, LP for a Buchanan Field Airport Development Project, Concord. (District IV).

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/01/2022

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: February 1, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of the County, a 50-year ground lease between the County, as Lessor, and Buchanan Field Self Storage, LP, as Tenant, for the lease and development on approximately 4.6 acres located on the northwest corner of Marsh Drive and Solano Avenue at Buchanan Field Airport.

FISCAL IMPACT:

There is no negative impact on the General Fund. 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.

BACKGROUND:

The development site is approximately 4.6-acres of vacant land owned by the County and located on the northwest corner of Marsh Drive and Solano Avenue at Buchanan Field Airport. The parcel is designated for non-aviation use on the Updated Airport Layout Plan for the Buchanan Field Airport.

BACKGROUND: (CONT'D)

On March 13, 2018, the Contra Costa County Public Works – Airports Division proactively solicited and advertised for development interest in the 4.6-acre site. The competitive solicitation process was consistent with the Federal Aviation Administration Airports District Office’s guidance for airport property use. The Airports Division received seven letters of interest from private parties to develop the site. Airports Division staff then distributed a Request for Proposals to select a master developer to the seven interested parties. The Airports Division received two complete proposals for development of this site.

On June 26, 2018, the Board of Supervisors authorized staff to negotiate ground lease and development terms for this property with the highest ranked proposal as determined by a selection committee. This action was consistent with the master developer selection process that was approved by the Board of Supervisors on May 23, 2006, whereby projects with a competitive interest are to proceed with the traditional environmental review and lease development process.

Development and use of this 4.6-acre vacant parcel for self storage use would expand economic development activity at Buchanan Field Airport. The lease will provide significant revenues to the Airport Enterprise Fund and County General Fund. Upon completion of construction rent period (at $1,500.00 per month), the ground rent will begin at $4,167.00 per month (or $50,004.00 per year), which will increase by prescribed increments until Year 6 when rent will increase annually by a CPI inflator. Every ten years the lease will be revalued based on market appraisals.

The lease is comparable to other executed leases and is consistent with the Airport Master Plan and County General Plan. This development will also facilitate the growth and development as identified in the adopted Buchanan Field Airport Master 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.

A copy of the Lease signed by the Tenant is attached.

CONSEQUENCE OF NEGATIVE ACTION:

The County General Fund and the Airport Enterprise Fund would not realize the additional revenues. The County-owned land would remain vacant and may negatively impact build out of the airport as detailed in the Master Plan.