Title
Airports, a division of the Chief Administrative Office, with concurrence from the Airport Ad-Hoc committee, recommending the Board approve the use of the attached templates for all new Ground leases and County Hangar leases and authorize the Chief Administrative Officer or Assistant Chief Administrative Officer to make minor modifications to the templates, including changes related to any new Federal Aviation Administration laws or guidelines, if necessary pending approval by the Airport Ad-Hoc committee, County Counsel, and Risk Management.
FUNDING: Fees.
Body
DISCUSSION / BACKGROUND
In December 2024, the Board approved changes to the Board of Supervisors Policy F-10 which resulted in changes to the airport lease templates. Airport tenants expressed concerns to County staff and the Board regarding the changes made to the lease templates. Over the course of the last several months, County staff have been working closely with the Airport tenants, County Counsel, and the Airport Ad-Hoc committee to modify the existing Ground and County Hangar lease templates. The Board Ad-Hoc committee held two public meetings on August 26, 2025, and on October 7, 2025. The August meeting included a presentation by Aeroplex Group Partners with a focus on fees and lease terms. There was significant feedback from the Airport tenants during this meeting regarding lease terms that they wanted to see changed in the existing leases. Staff reflected on this feedback and made changes to the lease templates. These changes were presented at the public meeting on October 7, 2025. Feedback from the Airport tenants during the October meeting was very positive and they requested an additional month to do a thorough review of the new template and provide staff with any feedback by mid-November. In mid-November, the Assistant Chief Administrative Officer met with representatives from the Gold County Airports Association and received final feedback on the draft lease templates. The attached Ground Lease and County Hangar Lease templates are a result of these meetings. These leases include many changes suggested by the Airport tenants as well as clarifications requested by staff to help make administration of the leases more efficient. The main changes in the lease templates are noted below:
1) Section 2 - Term - The term has been updated to include two successive ten (10) year options upon expiration of the initial ten (10) year term, essentially allowing for a thirty (30) year lease.
2) Section 3 - Consideration - The airport tenants requested some certainty around lease rates. The templates include an annual escalation clause of 2.5%. This allows the LESSEE to know exactly what they are agreeing to and allows for administrative efficiencies while also providing certainty for airport revenues that keep up with inflationary costs.
3) Section 6 - Indemnification - This language has been revised to exclude any claim or damage related to active negligence or willful misconduct of the County.
4) Section 8 - Maintenance - The five year inspection has been removed from the lease and the maintenance obligations of the LESSEE have been clearly defined. The LESSEE is still solely responsible to maintain the hangar in compliance with applicable laws, in good order, repair, sanitary, structurally sound, and safe.
5) Section 19 - Default - Default language has been clarified including specific events of default defined.
6) Section 21 (ground lease only) - Surrender of Premises and Abandonment - There was some confusion from the airport tenants that the prior language included a reversionary clause in this section. There are no reversionary clauses in this lease. This section clarifies that in the event a hangar is abandoned 120 days after termination or expiration of the Lease, the County may remove and dispose of the hangar and charge LESSEE for related costs.
All new leases will be required to follow the new lease templates. Upon approval of the new lease templates, staff will return to the Board with adjustments to the F-10 policy to align with the new lease templates. If a lease is executed prior to adjustments to the F-10 policy, the lease terms will prevail.
Overall staff believes that these changes are positive and there has been a shift towards a more trusting and collaborative relationship between the County and the Airport tenants. If these lease templates are approved, staff are committed to ensuring that all tenants have the required leases and that the terms and conditions are being enforced equitably to all tenants. The County is in the process of hiring a new Airport Operations Officer who will continue to build upon the collaborative approach with tenants and provide strategic vision around the next steps towards building a sustainable Airport program.
ALTERNATIVES
The Board could choose not to approve the lease templates and staff would need to revert to the old lease format for all new leases.
PRIOR BOARD ACTION
Legistar file 24-1891 - 12/10/2024 - Resolution 188-2024 establishing an updated Airport Division Fee Schedule and revisions to Board of Supervisors Policy F-10 County-Owned Airports - Regulations, Security, and Leases, Repeal Resolution 052-2018, County Airport Advisory Committee, dissolving the Committee; and direct the Airport Director to hold at least one annual meeting with the airport users, interested parties, and the District III and IV Supervisors.
Legistar file 25-1279 - 07/29/2025 - Update to Policy F-10 to change insurance requirements
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Revenue from all ground and county-owned hangar leases will grow at an annual rate of 2.5% which could equate to approximately $6,000 annually.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Laura Schwartz, Assistant Chief Administrative Officer