TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, A.A.E., Airport Manager
SUBJECT: Approval of Amendment No. 3 to Agreement 230234B, Amended and Restated Guaranty Agreement 230235B, Consent to a Deed of Trust, and Memorandum of Lease
RECOMMENDATION
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Approve and authorize Amendment No. 3 to Lease Agreement No. 230234B with SkyserviceUS California LLC. (Skyservice); Amended and Restated Guaranty Agreement No. 230235B with ALIS 1A, LLC; and the Consent to the Deed of Trust between SkyserviceUS California, LLC and Royal Bank of Canada thereby allowing the Fixed Base Operator to financially encumber the leasehold estate at the Napa County Airport. (No Fiscal Impact)
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BACKGROUND
Lease Agreement No. 230234B with SkyserviceUS California, LLC (Skyservice) for Fixed Base Operator (FBO) services and development was approved by the Board on December 6, 2022. Amendment No. 1 to the Agreement was executed on March 21, 2023 to adjust the square footage of the commercial hangar based upon actual measurements. Amendment No. 2 to the Agreement was executed on June 25, 2024 to increase the size of the leasehold and add a joint funded fuel farm infrastructure project. The Guaranty Agreement No. 230235B with ALIS 1A, LLC (parent corporate entity) as financial and operational security to the lease was approved by your Board on December 6, 2022.
Skyservice requested the County's consent to record a leasehold deed of trust against Skyservice's leasehold interest to secure a $35 million loan by its parent company, Leading Edge Jet Midco LLC. The loan would also be secured by three other FBO interests held by related entities in the United States. While the original lease provided Skyservice with rights to borrow funds for the development of the FBO using the leasehold estate as collateral, it did not contemplate using the leasehold estate to secure a loan to its parent company. Therefore, to approve this encumbrance, an amendme...
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