Agenda

Return

C. 20

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	May 7, 2019

Contra

Costa

County

Subject:

Exclusive Negotiating Agreement – Montecito Development Company, LLC for Land at the Buchanan Field Airport, Concord Area (District IV)

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/07/2019

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 7, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or designee, to execute an Exclusive Negotiating Agreement with Montecito Development Company, LLC, a California limited liability company, for the negotiation of a long-term lease of approximately 17-acres of land on the west side of the Buchanan Field Airport.

FISCAL IMPACT:

There is no negative impact on the General Fund. The Airport Enterprise Fund could realize lease and other revenues. The County General Fund could realize sales tax and other revenues if a lease is successfully negotiated.

CONSEQUENCE OF NEGATIVE ACTION:

A delay in entering into an exclusive negotiating agreement will result in a delay of developing vacant land at Buchanan Field Airport and may negatively impact the Airport Enterprise Fund and County General Fund.

BACKGROUND:

On November 13, 2018, the Board authorized the Director of Airports, or designee, to negotiate a long-term ground lease and development terms for this vacant 17-acre site. The property is located on the west side of Buchanan Field Airport generally between Marsh Drive and Sally Ride Drive. The proposal from Montecito Development Company, LLC (Montecito) was the only offer the County received following a solicitation for competitive interest in the site.

Montecito desires to lease the site and develop it for non-aviation commercial purposes. Because the parcel is currently designated for aviation use on the existing Buchanan Field Airport Master Plan, the Airports Division is in the process of applying to the Federal Aviation Administration (FAA) to permit non-aviation use at this location. This process will involve undertaking the Federal NEPA environmental review process and completing the land release package to allow for non-aeronautical use of the property.

By entering into an exclusive negotiation agreement with Montecito, Montecito can actively market the property to identify a tenant or tenants. Further, it will enable the County and Montecito to feel confident in proceeding with all of the review processes, including Federal NEPA environmental review, necessary to complete the FAA process for the release of the land for non-aviation uses. It will also enable the parties to proceed with the land use entitlement process. Finally, it will enable the parties to proceed with the CEQA process, as mandated by State law.

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.