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Transportation Department recommending the Board consider the following:
1) Authorize the Chair to terminate the Ground Leases with James M. Smith 128-L0611, Mike Starkey 127-L0611, Steve DeHaas and Ray Little 375-L0711, Stephens Family Trust Dated August 11,1992 231-L0611, James F. Riordan 229-L0611, Shultz Family Trust Mitchell B. Shultz, Trustee lease dated 12-20-99, Tom Halsey 376-L0711, at the Placerville Airport and Rodger Musso 582-L0511 at the Georgetown Airport; and
2) Authorize the Chair to sign the 10 year Ground Lease for Portable Hangars with Ricky J. Branaugh 10-52936, Corydon Edgecomb 10-52937, Steven DeHaas 10-52938, Jeff Jacques 10-52939, Greg McEwen and Ken Crawford 10-52940, Brandley Reinke 10-52941, Kelly Van Slate 10-52949 at the Placerville Airport and Gary Vorderbruggen 10-52942 at the Georgetown Airport. (4/5 vote required per County Ordinance 3.08.021)
FUNDING: Placerville and Georgetown Airports Enterprise Fund - Fee Revenue.
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Fiscal Impact/Change to Net County Cost: None
The County will continue to receive annual revenue in the total amount of $5,400.00 from the leases listed as set by Resolution 232-2004. There is no net cost to the County General Fund associated with this agenda item.
Background:
The leases DOT is requesting to be terminated are with former tenants who have sold their interests in their hangars to new owners. The new tenants who have purchased those hangars would normally have been assigned to the previous tenant's lease. The Airports have requested the new tenants enter into a new Ground Lease. This enables the Airports to update the contractual language now required by the Federal Aviation Administration and El Dorado County. All of the current Ground Leases will be replaced with a 10 year Ground Lease Agreement containing the new language which was approved by the Airport Committee and your Board on August 18, 2009.
It was necessary for Airports to hold off on submitting the new leases to the Board until all of the required insurance certificates had been obtained. All of the necessary insurance certificates have now been received and the Department is presenting the leases in a packaged presentation as requested by the Board. All of the tenants are current with their lease payments.
Gary Vorderbruggen (10-52942) purchased the hangar on Space #9 from Patrick and Cheryl Leeds who had purchased it from Ben Hollingsworth. Mr. and Mrs. Leeds were in the process of entering into an agreement with the County but sold their interests to Mr. Vorderbruggen and the Leeds' agreement was never processed. At the same time Randy Johnson purchased the hangar on Space #7 from Rodger Musso, but prior to entering into an agreement with the County, he informed the Airports that Mr. Vorderbruggen and he had traded hangars. Since agreements were never previously established, agreements are being entered into now with Mr. Vorderbruggen occupying Space #7 and with Mr. Johnson occupying Space #9. Mr. Johnson's agreement will be presented in a subsequent agenda item. The tenants continued to pay and the County continued to accept rent from the tenants. The actions requested in this item will remedy these agreements by putting in place new 10 year Ground Leases.
Reason for Recommendation:
Airport users with portable hangars must enter into a ground lease with the County of El Dorado for the use of Airport property.
Action to be taken following Board approval:
1. The Board Chair will execute the Ground Lease Agreements.
2. The Clerk of the Board to return one fully-executed copy of each Ground Lease Agreement to DOT (Airports) for transmittal to Lessee.
District/Supervisor: III / Jack Sweeney and IV / Ron Briggs
Contact: James W. Ware P.E.
Director of Transportation
Concurrences: County Counsel and Risk Management