To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Approval of Consent to Assignment between the County, Buchanan Fields Golf Course, Inc., and Buchanan Fields Golf Club, LLC
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Airports, or his designee, to execute on behalf of the County, a consent to assignment of the lease between the County and the current tenant, Buchanan Fields Golf Course, Inc., and the new tenant, Buchanan Fields Golf Club, LLC, to assign the lease of a County-owned property located at 1091 Concord Avenue, Concord.
FISCAL IMPACT:
The Airport Enterprise Fund will continue to receive lease payments and other revenues provided for in the lease. Separately, the County's General Fund will continue to receive sales tax and possessory interest tax revenues resulting from the lease and the facility's ongoing business operations.
BACKGROUND:
In October of 1991, the County entered into a ground lease with Buchanan Fields Golf Course, Inc., (Tenant) for property at Buchanan Field Airport located at 1091 Concord Avenue. Since lease inception, the Tenant has operated a public golf course at the site. Earlier this year, Tenant entered into an asset purchase agreement with Buchanan Fields Golf Club, LLC, (Golf Club) for the sale of Tenant's assets, including the ground lease, to Golf Club. In accordance with the lease, the proposed assignment to Golf Club requires the County's consent.
Golf Club is a newly formed limited liability company that intends to continue to operate a golf course at the leased property. Because this is a newly established company without an established financial history, two members of Golf Club are personally guarantying the financial obligations of Golf Club under the lease for five years.
Over the last several months, Airports staff have met with Golf Club ownership to discuss their business plan, anticipated capital improvements/expenditures, and marketing ideas. Although not an obligat...
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