Agenda

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C. 10

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

Contra

Costa

County

Subject:

First Amendment to Exclusive Negotiating Rights Agreement with FSRE Industrial Concord, LLC

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 first amendment to the Exclusive Negotiating Rights Agreement between the County and FSRE Industrial Concord, LLC dated May 7, 2019, to extend its term for one year, with two optional six-month renewal periods.

FISCAL IMPACT:

There is no negative impact on the General Fund. If the property is leased as a result of the ENRA, the Airport Enterprise Fund will realize lease and other revenues and the County General Fund will realize sales tax and other revenues.

BACKGROUND:

On November 13, 2018, the Board authorized the Director of Airports to negotiate a long-term ground lease and development terms with a developer for a vacant 17-acre site at the Buchanan Field Airport. The property is located on the west side of the Airport, generally between Marsh Drive and Sally Ride Drive. The Montecito Development Company (Montecito) was the only developer to submit an offer in response to the County’s solicitation for competitive interest in the site

On May 7, 2019, the Board authorized the Director of Airports to enter into an Exclusive Negotiating Rights Agreement (ENRA) with Montecito so they could actively market the property to identify a tenant. Further, it also enabled the County and Montecito to feel confident in proceeding with the requisite entitlement processes, including the environmental reviews for the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA).

After executing the ENRA, Montecito formed FSRE Industrial Concord, LLC, as a separate limited liability company with an investor. On June 8, 2021, the County consented to the assignment of Montecito’s rights under the ENRA to FSRE Industrial Concord, LLC (Developer).

The Developer has been diligently pursuing the development of the property by attempting to obtain land use entitlements and the preparation of an environmental impact report. As a result of a stormwater drainage issue that impacts the subject property, and property adjacent to it, the development process is taking longer than expected. As a result, the County and Developer desire to amend the ENRA to extend its term to allow the Developer the time needed to complete the entitlement process and associated environmental reviews.

Development of this 17-acre vacant parcel would expand economic development activity at the Buchanan Field Airport and lead to increased revenues to the Airport Enterprise Fund and added local jobs.

CONSEQUENCE OF NEGATIVE ACTION:

Allowing the ENRA to expire in May 2023 could negatively impact the development and marketing of the property.