To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Approve and Authorize the Director of Airports, or designee, to execute a Lease Agreement at Buchanan Field Airport
?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 the Federal Aviation Administration, as Tenant, for the existing Airport Traffic Control Tower located at 201 John Glenn Drive, Concord, for a term of 20 years, at an initial rate of $5,932 (rent and operating costs) per month, and 15% rent escalations for each 5-year term beginning in 2030. (100% Airport Enterprise Fund)
FISCAL IMPACT:
The Airport Enterprise Fund will receive annual lease revenue totaling $71,184 during the first 5-year term which includes $65,424 for reimbursement of airport-funded maintenance costs over the last several years.
BACKGROUND:
The Buchanan Field Airport Traffic Control Tower (Tower) is located at 201 John Glenn Drive and is staffed and operated by the Federal Aviation Administration (FAA). This County owned facility was built in 1961, and given its age, requires significant maintenance efforts. Historically there's been a lease agreement between the County and the FAA detailing items such as its use and maintenance obligations. The operative lease has been in hold-over status for approximately 18 years, and the annual rent revenue does not cover the Airport's costs. With respect to the Airport's ongoing maintenance and operating costs, the attached new lease will, 1) double the current annual rent revenue, 2) reimburse the Airport for major maintenance performed over the last several years, and 3) require the FAA to reimburse the Airport for any "major maintenance" costing more than $1,000. As detailed on page 2 of the agreement, the reimbursement of previous work will be paid-off during the first 5-year term, thus the annual Base...
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