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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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March 4, 2010
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BOARD MEETING DATE:
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March 23, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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4/5ths
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TO:
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Honorable Board of Supervisors
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FROM:
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Steve Alms, Manager, Real Property Division
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SUBJECT:
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First Amendment to Lease/Concession Agreement with JATO Aviation, LLC for a portion of the Airport Terminal Building at 620 Airport Drive, San Carlos (Lease No. 5321).
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RECOMMENDATION:
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Adopt a resolution authorizing:
1. The President of the Board to execute a First Amendment to the Lease/Concession Agreement with JATO Aviation, LLC, for a portion of the Airport Terminal Building at 620 Airport Drive, San Carlos, California, which, subject to JATO’s option to extend for an additional 5-year term, expires June 30, 2012, increasing the size of the Premises to 710 square feet, increasing the Base Rent to $1,661.90 per month, increasing the Utility Charge to $470.00 per month, and setting forth an improvement allowance of $1,600.00 to replace the carpet in the expanded area of the Premises; and
2. The County Manager or his designee to execute notices, options and documents associated with the First Amendment and the Agreement including, but not limited to, extension or termination of the Agreement under the terms set forth therein.
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BACKGROUND:
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On June 1, 2007, the County and JATO entered into a five-year Lease/Concession Agreement for use of the San Carlos Airport Administration Building, Suite #8, consisting of approximately 470 square feet of office space, for the purpose of providing aviation related activities, including aircraft flight training and rentals. The current rent is $1,121.90 per month and the current utility fee is $369.00. The Agreement gives JATO one option to extend the term for an additional five years on the same terms and conditions.
On July 31, 2009, Hertz terminated its Lease of Suite #7, which consists of approximately 240 square feet of office space adjacent to the JATO Premises. The County solicited proposals for use of the space, and JATO submitted a proposal to expand its Premises to include Suite #7. After reviewing all proposals, the County selected JATO as the most compatible candidate for the space. The County and JATO desire to amend the original JATO Lease/Concession Agreement to include Suite #7 in the Premises.
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DISCUSSION:
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Real Property Services has prepared the First Amendment to Lease/Concession Agreement, which modifies the JATO Premises to include Suites #7 and #8 and increases the area to 710 square feet. The Amendment increases the monthly Base Rent to $1,661.90 per month, subject to 3% annual adjustments, increases the Utility Charge to $470.00 per month and sets forth a one time improvement allowance of $1,600.00 to be provided by the County for the installation of carpet in the expanded Premises. The terms and conditions of the Agreement are otherwise unchanged.
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County Counsel has reviewed and approved the Amendment and Resolution as to form. The Director of Public Works concurs in this recommendation.
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Approval of this Amendment contributes to the Shared Vision 2025 outcome of a Collaborative Community by establishing an agreement that authorizes JATO to expand the area of their Premises and serve additional customers, while increasing revenue for the County.
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FISCAL IMPACT:
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The monthly Base Rent and Utility Charge, initially $1,661.90 and $470.00, respectively, will be deposited to the Airport Enterprise Fund, which will fund the one time improvement allowance of $1,600.00.
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