TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Mark Witsoe, Airport Manager
SUBJECT: Space License Agreement with Napa Jet Center, Inc. d.b.a. Atlantic Aviation
RECOMMENDATION
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Director of Public Works requests approval of and authorization for the Chair to sign Space License Agreement No. 230301B with Napa Jet Center, Inc. for approximately 1,350 square feet of space located at the Napa County Airport for $2,805 per month, through June 30, 2025, to be used for flight training purposes.
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EXECUTIVE SUMMARY
Napa County Agreement No. 230232B, which was executed on December 6, 2022, with Napa Jet Center, Inc. d.b.a. Atlantic Aviation (“Atlantic Aviation”) for the purpose of providing Fixed Base Operator (FBO) services, terminated prior agreements for FBO ground and facility rentals. The parties inadvertently did not include approximately 1,350 square feet of space needed by Atlantic’s provider of flight school services in the new FBO agreement. The proposed space license agreement will rectify the omission and provide space within the existing terminal at 2030 Airport Road through June 30 2023, and then provide equivalent space at the County’s new General Aviation Terminal, located at 2000 Airport Road through June 30, 2025. Staff requests Board approval of the new Space License Agreement for $2,805 per month, terminating on June 30, 2025.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Revenue is budgeted to Airport-Operations Fund 5010, Org 5010000. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Napa County Airport Enterprise Fund will continue to receive monthly rental income totaling $2,805 until June 30, 2025, and Atlantic Aviation’s flight school provider will continue to have space to provide flight instruction services. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Revenues will continue to be budgeted through the term of the Agreement. |
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Consequences if not approved: |
Airport Enterprise Fund will not receive the proposed revenue. The Flight School operation, a required service to be provided by Atlantic Aviation, would not have adequate space for continued operations over the next two years. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
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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.
BACKGROUND AND DISCUSSION
Since 2019, Mike Smith Aviation has operated at the airport as a subtenant and commercial operator to Napa Jet Center, Inc. d.b.a. Atlantic Aviation. Under contract with Atlantic Aviation, Mike Smith Aviation’s operation includes administrative and training space in the current airport terminal, Hangar 55, and four tie-downs for aircraft parking. The lease for the subtenant space in the current airport terminal was inadvertently terminated on December 6, 2022, with the execution of the new FBO agreement with Atlantic Aviation (Napa County Agreement No. 230232B). The proposed space license agreement now more specifically identifies the rental space, business terms, and schedules for the current terminal and eventual relocation to 2000 Airport Road facilities as contemplated in negotiations with Atlantic Aviation.
For the inconvenience of moving twice, once out of the existing terminal and then again into Atlantic Aviation’s new facility development, staff negotiated no rental adjustments for the length of the agreement (through June 30, 2025). Mike Smith Aviation will continue to utilize Hangar 55, will park their training aircraft on the County tie-down apron, and will utilize designated space in the new General Aviation Terminal, located at 2000 Airport Road.
Staff requests Board approval of the proposed Space License Agreement with Napa Jet Center, Inc. d.b.a. Atlantic Aviation, for 1,350 square feet of office and classroom space with non-exclusive access to building public facilities at a rate of $2,805 per month, through June 30, 2025.