TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Lease Agreement No. 230232B with Napa Jet Center, Inc. dba Atlantic Aviation - Approve First Amendment
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Lease Agreement No. 230232B with Napa Jet Center, Inc. dba Atlantic Aviation (Atlantic) to adjust square footage and total compensation to lease areas, change adjustments to base rent, add Fuel Farm Infrastructure Improvement reimbursement to County, extend development timelines, and replace Exhibits. (Fiscal impact: $201,990 Revenue; Airport Fund; Budgeted; Discretionary)
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BACKGROUND
Lease Agreement No. 230232B with Atlantic for Fixed Base Operator (FBO) services and development was approved by the Board on December 6, 2022. In summary, the lease agreement provides a term of thirty (30) years with an option to extend for up to two (2) consecutive five (5) year periods; includes approximately ten (10) acres of ground lease and a 30,000 square foot commercial hangar; requires payment of fuel flowage fees and a tax minimum annual guarantee; requires minimum capital investment of $13.6 million for infrastructure development including a terminal, commercial hangar, and fuel farm; and requires construction of commercial space for a flight school within its terminal.
Since December, 2022, Atlantic has been involved in planning for development of their ground lease space. They have justified their interest in expanding the width of their ground lease premises by 30 feet to accommodate their planned corporate aircraft storage hangars, FBO lobby, and flight school. The additional 30 feet would be added to the south side of their existing lease. In addition, as part of their required work to develop a new fuel farm, and because of similar requirements for the County and SkyserviceUS California (the other FBO at the Airport), an opportunity to split the cost of shared fuel farm infra...
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