TO: Board of Supervisors
FROM: Steve Lederer, Director of Public Works
REPORT BY: Greg Baer, Airport Manager
SUBJECT: Amendment No. 1 to Napa County Agreement 4381 with Rombauer Vineyards, Inc.
RECOMMENDATION
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Director of Public Works requests approval of and authorization for the Chair to sign Amendment No. 1 to Napa County Agreement No. 4381 terminating the ground lease agreement for airport hangar space effective September 28, 2021 as requested by the Lessee, Rombauer Vineyards, Inc.
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EXECUTIVE SUMMARY
Napa County Agreement No. 4381 originated in November of 2000 with Rombauer Vineyards to effectuate a ground lease for the construction of a 9,000 sq.ft. hangar and subsequent storage of private aircraft at the Napa County Airport. Although the term of the lease has about four years remaining, the lessee, Rombauer Vineyards no longer desires the hangar, and has requested that the County terminate the agreement.
FISCAL & STRATEGIC PLAN IMPACT
Is there a Fiscal Impact?
Yes
Is it currently budgeted?
No
Where is it budgeted?
Revenue from ground leases are budgeted in the Airport Enterprise Fund (Fund 5010, Subdivision 5010000)
Is it Mandatory or Discretionary?
Discretionary
Discretionary Justification:
The lessee desires to forego the remaining four years on the ground lease that currently garners a monthly rent of $587.33. Once the Airport takes possession of the hangar, it will be able to lease the facility at improved rates, which would be estimated at $9,900/month.
Is the general fund affected?
No
Future fiscal impact:
It is anticipated that a new private hangar lease will have a term of 10-15 years, at a lease rate of approximately $9,900/month with appropriate escalations over time.
Consequences if not approved:
The Airport would not be able to take advantage of this increased lease rate four years early, and the lessee would have to find another way to alleviate themselves of this unwanted asset.
County Strategic Plan pillar addressed:
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