Agenda

Return

C. 5

To:	Board of Supervisors
From:	Greg Baer, Director of Airports
Date:	February 28, 2023

Contra

Costa

County

Subject:

Approval of Change in Ownership of Pacific States Aviation, a Buchanan Field Airport Tenant

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/28/2023

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
Ken Carlson, 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 28, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County, a consent to the transfer of ownership of Pacific States Aviation, Inc. from its current owner, the Thompson Family Restated Living Trust, to the new owner, Stripes - US Holdings, LLC.

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 generated from the Lessees’ business.

BACKGROUND:

In February of 2006, the County entered into a ground lease with Pacific States Aviation, Inc. (PSA) to conduct Fixed Base Operator (FBO) services at Buchanan Field Airport (51 and 101 John Glenn Drive). As a part of the lease, PSA is obligated to provide certain aeronautical services such as aircraft storage, fueling, ramp service, and maintenance of general aviation aircraft. In addition to the required FBO services being provided, PSA also owns and operates the most active flight school at Buchanan Field Airport.

The current owner of PSA has entered into a stock purchase agreement with Stripes - US Holdings, LLC (Stripes) for the sale of PSA to Stripes. The sale of PSA has the effect of transferring ownership of the existing lease which requires the County’s consent. The new owner of PSA will be personally guaranteeing the financial obligations of PSA under the lease for five years. Stripes is a newly formed limited liability company that intends to continue to operate PSA as a FBO, as well as maintain their robust flight training program. Such services are a vital part to the economic engine and community benefits of a general aviation airport such as Buchan Field.

CONSEQUENCE OF NEGATIVE ACTION:

The owners of PSA will not be able to transfer ownership of the company.