TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Amendment No. 2 to Space License Agreement 230301B with Napa Jet Center, Inc. doing business as Atlantic Aviation
RECOMMENDATION
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Approve and authorize Amendment No. 2 to Space License Agreement No. 230301B with Napa Jet Center, Inc., doing business as Atlantic Aviation, to change hangar utilization from one hangar to another hangar of similar size (approximately 4,200 square feet) at the Napa County Airport, with no change to monthly rent and utility fees, to be retroactively effective July 1, 2023 through June 30, 2025. (No Fiscal Impact; Discretionary)
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BACKGROUND
Atlantic Aviation, through a subtenant agreement with commercial operator Mike Smith Aviation (“MSA”), has offered flight school services at the Napa County Airport since 2019. Under contract with Atlantic Aviation, MSA’s operation includes administrative and flight training space in the airport terminal, use of Hangar 55 for flight training, and four tie-downs for aircraft parking. On February 7, 2023, given pending demolition of the County Airport Terminal where MSA offices were located, the Board approved Space License Agreement No. 230301B with Atlantic Aviation, which provided new office and training space for the flight school within the County’s new General Aviation Terminal located at 2000 Airport Road through June 30, 2025.
On June 6, 2023, Amendment No. 1 to Agreement 230301B was executed with Atlantic Aviation to provide hangar space at 1950 Airport Road, in exchange for use of Hangar 55, to allow MSA to operate and maintain their small aircraft in close proximity to the flight school’s new office space at 2000 Airport Road and to avoid construction impacts that will occur in and around Hangar 55 during the County’s Terminal Area Redevelopment Project Phase 1 Project (PW#23-29R) to relocate sewer and electrical infrastructure. While relocation of the flight school from Hangar 55 to 1950 Airport Road initially seemed beneficial to all parties, it was later determined that the relocation project was unachievable given the flight school’s demanding schedule and that MSA would prefer to remain in Hangar 55.
Staff now requests Board approval of Amendment Number 2 to Space License Agreement No. 230301B with Napa Jet Center, Inc. dba Atlantic Aviation, to allow MSA to remain in Hangar 55, retroactively effective July 1, 2023, at the initial rate of $1,667 per month with $145 per month for utilities, with tenancy continuing through June 30, 2025. Amendment No. 2 also addresses intermittent and permanent impacts from the County’s Terminal Area Redevelopment Project Phase - 1 (PW# 23-29R), including periodic delays in access, utility shut-offs, and other potential operational impacts.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Airport- Operations Fund (Fund 5010; Subdivision 5010000) |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of Amendment No. 2 will further facilitate efficient operation of the flight school services offered by Atlantic Aviation via a subtenant. The Airport Enterprise Fund will continue to receive revenue until the completion of the pioneering period. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Continued monthly operating revenue until terminated. |
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Consequences if not approved: |
The flight school would have to move into a portion of the Hangar at 1950 Airport Road, which is not ideal or desirable for MSA’s maintenance activity. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.