To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Approve And Authorize Termination Of T-Hangar Rental Agreement With Thomas Elmendorf For Hangar C-28 At Byron Airport
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Airports, or designee, to terminate the T-Hangar Rental Agreement with Thomas Elmendorf for Hangar C-28 at Byron Airport. AUTHORIZE County Counsel to pursue legal action to regain possession of the real property if tenant fails to vacate the hangar within the time allowed. Byron Area.
FISCAL IMPACT:
The Airport Enterprise Fund will cover the cost of any legal action.
BACKGROUND:
On May 1, 2019, the County entered into a T-Hangar Rental Agreement with Thomas Elmendorf for the use of a T-Hangar located at the Byron Airport. Under the terms of the rental agreement, the primary use of the hangar is for aircraft storage and/or constructing or restoring an aircraft. Airport policy requires that stored aircraft must be owned by the individual(s) named on the rental agreement. The rental agreement also requires insurance meeting the County’s standards. When Mr. Elmendorf rented the hangar, he represented that he was in process of rebuilding his aircraft, which at the time was not registered with the Federal Aviation Administration.
In early 2022, due to Mr. Elmendorf being repeatedly delinquent paying rent, non-compliant with providing proof of insurance, and not having passed the hangar inspection, a termination process was initiated. On June 29, 2022, County Counsel filed an unlawful detainer against Mr. Elmendorf. After being served with a Summons and Complaint on or about August 2022 for the Unlawful Detainer, Mr. Elmendorf contacted the Director of Airports in an attempt to resolve all outstanding issues with the County to avoid a judgement. The County agreed to resolve the claim by entering into a Letter Agreement in which he agreed to pay all outstanding rents and County’s enforcement costs associated with the Unlawful Detainer. Further, Mr. Elmendorf agreed to voluntarily move out by May 30, 2023. Since that time the tenant has repeatedly requested extensions to his moveout date, which were granted by the Director of Airports.
Mr. Elmendorf is once again behind in rent payments and has not provided the required proof of insurance. Airport staff has made every effort to allow Mr. Elmendorf to voluntarily vacate the hangar, however, that has not happened. To that end, the Director of Airports is requesting Board approval to terminate the rental agreement with Mr. Elmendorf in accordance with Section 20 (Termination) of the rental agreement.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to terminate the rental agreement and pursue legal action to regain possession of the hangar would result in the Airport being unable to enforce adopted Airport policies and procedures.