To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Approval and Authorization to Execute a Lease with Delux Public Charter, LLC for Use of the Airport's new ARFF/Administration/Terminal Building at Buchanan Field Airport, Concord (District IV).
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute a lease between the County, as Lessor, and Delux Public Charter, LLC (branded as JSX), as Tenant, for 532 square feet of office space and non-exclusive use of another room in the County-owned building located at 181 John Glenn Drive, Concord, for a three-year term at an initial annual rent of $14,856 for the first year with annual increases thereafter, and three options to renew for a term of one-year for each option.
FISCAL IMPACT:
The Airport Enterprise Fund will receive annual lease revenues of $14,856 as well as an enplanement fee of $5.00 for each passenger that departs on JSX from Buchanan Field. Additional revenue will be derived through fuel flow fees ($0.08/gallon) for fuel purchased by JSX from one of Airport's Fixed Base Operators. The monthly rent during the term of the lease will increase annually by 3%, and the enplanement fee will remain static at $5.00 per passenger. The County will reimburse JSX through enplanement fee credits for shared janitorial costs, estimated at $3,900 per month.
BACKGROUND:
Delux Public Charter, LLC is the entity that operates the aircraft charter company JSX (formerly, JetSuiteX). In 2016, Buchanan Field was the destination airport when JSX launched its service. For the next seven years, JSX served Buchanan Field and operated out of the Airport's double wide trailer located at 181 John Glenn Drive.
As of early last month, Airports staff took occupancy of its new Aircraft Rescue and Fire Fighting (ARFF)/Administration/Terminal building. Because of the long-standing relationship between...
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