Agenda

Return

C. 11

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	May 23, 2017

Contra

Costa

County

Subject:

Approval of Consent to Assignment of Lease between the County, Concord Hotel LLC and Dale Village Apartment Company, LP for Property located at Buchan

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/23/2017

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: May 23, 2017
David Twa,

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, Concord Hotel LLC, and the new tenant, Dale Village Apartment Company, LP, (Dale Village), to assign its lease of the County-owned property located at 45 John Glen Drive, Concord to Dale Village. (District IV)

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 from the Lease.

BACKGROUND:

Under a ground lease dated September 21, 1971, the County leased the subject property for the purpose of providing a hotel at Buchanan Field Airport. On May 22, 2007, the lease was assigned from Airport Capital Group to Concord Hotel, LLC. The obligations of Concord Hotel, LLC were guaranteed by Dale Village and Villa Grande Apartment Company, Ltd. Recently Villa Grande Apartment Company, Ltd merged with Dale Village, resulting in Dale Village becoming the sole guarantor of the lease. Concord Hotel, LLC and Dale Village now desire to have the lease assigned to Dale Village, after which Concord Hotel LLC will be dissolved.

An assignment of the lease requires the prior written consent of the County. This action authorizes consent to the assignment. This action does not amend or alter the terms of the existing lease.

CONSEQUENCE OF NEGATIVE ACTION:

The County will not consent to the assignment of the lease and Concord Hotel, LLC will not be able to assign its interest in the lease.