Agenda

Return

C. 17

To:	Board of Supervisors
From:	Greg Baer, Director of Airports
Date:	July 12, 2022

Contra

Costa

County

Subject:

Assignment of Lease of County-Owned Property Located at 1500 Sally Ride Drive, Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/12/2022

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: July 12, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County, a consent to assignment of lease between the County and the current tenant, VOLY RE, LLC, to assign its lease of County-owned property located at 1500 Sally Ride Drive, Concord, to Hapi314159, effective July 1, 2022.

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:

The County entered into a 30-year ground lease with Michael J. Oakes on June 21, 2016, for real property at Buchanan Field Airport, specifically at 1500 Sally Ride Drive, for the purpose of providing auxiliary aviation services. On May 31, 2019, Michael J. Oakes assigned the lease to VOLY RE LLC.

BACKGROUND: (CONT'D)

VOLY RE LLC is a subsidiary of Volans I, Inc. Volans I, Inc. and its subsidiaries are in the process of being sold. Once the sale is finalized, the business will be relocated to another state. As a result, VOLY RE LLC desires to assign all of its interest in the ground lease to Hapi314159, which action requires the written consent of the County. Hapi314159 is a newly form limited liability company that intends to continue to operate an aviation business at the site. If the assignment is approved, compliance with the terms of the lease would be personally guaranteed for five years by the owner of Hapi314159, Hannan Parvizian.

CONSEQUENCE OF NEGATIVE ACTION:

VOLY RE LLC will not be able to assign its interest in the Lease which may have a detrimental effect on the sale of this company.