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Department of Transportation recommending the Board approve and authorize the Chair to sign the 10 year Ground Lease for Portable Hangars with Richard Moorhouse 10-52981 at the Placerville Airport and Robert Bement 10-52973 at the Georgetown Airport. (4/5 vote required)
FUNDING: Placerville and Georgetown Airports Enterprise Fund - Fee Revenue.
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Fiscal Impact/Change to Net County Cost:
The County will continue to receive annual revenue in the total amount of *$2,428.00 from these leases as set by Resolution 232-2004. There is no net cost to the County General Fund associated with this agenda item.
*There is a proposed rent increase scheduled for approval by the Board under a separate agenda item at the June 29, 2010 Board meeting. The proposed fee increase, if approved by the Board, will commence on July 1, 2010 and is not included in the above stated amount.
Background:
The former leases with the aforementioned parties/tenants have expired. Both of the tenants have continued to pay the annual amounts and are current on their liability insurance. The leases will be replaced with new 10 year Ground Leases. This will enable Airports to update the contractual language now being required by the Federal Aviation Administration and the County of El Dorado. The new Ground Lease Agreement with the required new language was approved by the Airport Advisory Committee and the Board on August 18, 2009.
Since the transition of the Airports from General Services to the Department of Transportation (DOT), the Airports had been working with the Airport Advisory Committee and County Counsel to create a new Ground Lease form. The negotiations were lengthy but necessary to create a lease that can be used for years to come. It was felt that even though leases had expired, it was necessary to wait until an updated lease was put into place before renewing those leases. The Airports have had to wait before submitting the new signed leases to the Board unt...
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