TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Amendment No. 1 to Napa County Agreement No. 4375 with Air Francis, LLC, consenting to the assignment and assumption of the lease at 3470 Airport Road to Giostyle LLC
RECOMMENDATION
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Director of Public Works requests approval of and authorization for the Chair to sign Amendment No. 1 to Agreement No. 4375 with Air Francis, LLC, consenting to the assignment and assumption of the lease at 3470 Airport Road to Giostyle LLC, for the term October 10, 2023 through October 23, 2025.
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EXECUTIVE SUMMARY
Agreement No. 4375 with Air Francis, LLC, dated October 24, 2000, will expire on October 23, 2025 after having exercised a single extension option for five (5) years. This land lease is for the construction and subsequent hangaring of the lessee’s aircraft.
Approval of Amendment No. 1 allows the Lessee to assign the agreement to Giostyle LLC. The Lease agreement states that a transfer of all its interest may be assigned upon receiving prior written consent from the County. All other terms of the lease shall remain in full force and effect.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
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.
BACKGROUND AND DISCUSSION
On October 24, 2000 the Board approved Lease Agreement No 4375 between the County of Napa and Air Francis, LLC for the development of an aircraft storage hangar and use thereafter as a private (non-commercial) aircraft storage hangar and as a base for flight operations. The initial twenty-year term included a single extension option for five (5) years which was exercised. The agreement will expire on October 23, 2025. The current land rental rate is $7,718.68 payable in monthly installments. Rent is adjusted annually by the change in the consumer price index.
Paragraph 9 (Permitted Uses of Leased Premises) of the Agreement states in part that the hangar shall be used only for the storage of aircraft possessed by Lessee and owner or lessee. According to Federal Aviation Administration (FAA) records, the registered owner of the aircraft that will be stored within the premises is Giostyle LLC. Thus, the proposed assignment will result in the Lessee complying with Paragraph 9 of the Agreement.
Aside from the requested assignment, all other terms and conditions of the lease will remain the same.