Agenda

Return

C. 7

To:	Board of Supervisors
From:	Greg Baer, Director of Airports
Date:	April 18, 2023

Contra

Costa

County

Subject:

Assignment of Lease of County Airport-Owned Property Located at 45 John Glenn Drive, Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/18/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I 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: April 18, 2023
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 consent to assignment of lease between the County and the current tenant, Dale Village Apartment Company, LP, to assign its lease of County Airport-owned property located at 45 John Glenn Drive, Concord, to Jai Shri Ram Hospitality Group, LLC.

FISCAL IMPACT:

There is no negative impact on the General Fund. The Airport Enterprise Fund will continue to receive rent and other income from this existing hotel site. The General Fund will continue to receive revenue from sales, transient occupancy, and possessory interest taxes.

BACKGROUND:

The County Airport-owned property at 45 John Glenn Drive is the site of a 132-room hotel that has been in operation for over 50 years. The current tenant, Dale Village Apartment Company, LP (Dale Village), is leasing the property from the County pursuant to an amended and restated lease dated April 1, 2023. The lease is effective through February 2073.

BACKGROUND: (CONT'D)

Dale Village and Jai Shri Ram Hospitality Group, LLC (New Tenant) are parties to an Agreement of Purchase and Sale dated July 26, 2022, under which New Tenant will acquire Dale Village’s rights and obligations under the existing lease. The lease requires the County’s consent to any assignment.

New Tenant is a newly formed limited liability company that will continue to operate a hotel at the site. The obligations of New Tenant to perform all of the tenant’s obligations under the lease are being guaranteed for five years by the owner of New Tenant.

Because the hotel has been long term tenant and a key component to Airport’s revenue diversification model, this assignment is important to the site’s ongoing use and potential capital investments.

CONSEQUENCE OF NEGATIVE ACTION:

Dale Village will not be able to assign its interest in the lease, which may jeopardize the planned renovation of the hotel.