Agenda

Return

C. 12

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	June 8, 2021

Contra

Costa

County

Subject:

Consent to Assignment of Exclusive Negotiating Rights Agreement - Buchanan Field Airport

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/08/2021

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: June 8, 2021
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 the Exclusive Negotiating Rights Agreement dated May 7, 2019, between the County and Montecito Development Company, LLC (Montecito) from Montecito to FSRE Industrial Concord, LLC, a Georgia limited liability company. (District IV)

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.

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.

BACKGROUND: (CONT'D)

On May 7, 2019, the Board authorized the Director of Airports, or designee, to enter into an exclusive negotiating rights agreement (ENRA) with Montecito so they could actively market the property to identify a tenant or tenants. Further, it also enabled the County and Montecito to feel confident in proceeding with all of the review processes, including Federal National Environmental Policy Act and California Environmental Quality Act environmental reviews, necessary to complete the FAA and County land use development entitlement processes.

As part of its efforts to move forward with the planned development of the property, Montecito formed a separate limited liability company with an investor. Montecito desires to assign all of its interest in the ENRA to the newly formed limited liability company, FSRE Industrial Concord, LLC. This action authorizes consent to the assignment. This action does not amend or alter the terms of the existing ENRA.

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:

The County will not consent to the assignment of the ENRA and Montecito Development Company, LLC will not be able to assign its interest in the ENRA.