Agenda

Return

C. 10

To:	Board of Supervisors
From:	Keith Freitas, Airports Director
Date:	September 21, 2021

Contra

Costa

County

Subject:

Consent to Assignment Pursuant to the Lease between the County and Buchanan Fields Golf Course, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 09/21/2021

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: September 21, 2021
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 under which the County consents to the assignment of the outstanding shares of Buchanan Fields Golf Course, Inc. (“Golf Course”) to Dianna Hall, the new owner of Golf Course, in accordance with the terms of the lease between the County and Golf Course dated October 1, 1991.

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 ground lease with Buchanan Fields Golf Course, Inc. (“Golf Course”) on October 1, 1991, for property at Buchanan Field Airport located at 1091 Concord Avenue, Concord (“Lease”). Pursuant to an agreement dated July 9, 2021, between the original owner of Golf Course (“Assignor”) and the current owner of Golf Course (“Assignee”) (the “Parties’ Mutual Agreement”), Assignor agreed and affirmed that Assignee is the current owner of Golf Course. Under the terms of the Lease, the County must consent to the transfer of a controlling interest in Golf Course.

Assignee has been responsible for the ongoing operation of Golf Course since at least November 6, 2018, pursuant to an order issued that day by the Superior Court of California, County of Contra Costa, in Case No. C18-00376. Since that time, Golf Course has complied with the material terms of the Lease and made all required payments in a timely manner.

This Board action would authorize the Director of Airports to consent to the assignment of a controlling interest in Golf Course that was effectuated by the Parties’ Mutual Agreement. The County’s consent is appropriate given Golf Course is in compliance with the material terms of the Lease and to prevent a technical default under the Lease.

CONSEQUENCE OF NEGATIVE ACTION:

The County will not consent to the assignment effectuated by the Parties’ Mutual Agreement, creating a cloud on the leasehold interest in the Lease.