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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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June 14, 2010
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BOARD MEETING DATE:
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June 29, 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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Lease/Concession Agreement with Half Moon Bay Aero, for the operation of a Fixed Base Operation at the Half Moon Bay Airport. (Lease No. 5070)
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RECOMMENDATION:
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Adopt a Resolution authorizing the:
1. President of the Board of Supervisors to execute a Lease/Concession Agreement with Half Moon Bay Aero, for the operation of a Fixed Base Operation at the Half Moon Bay Airport, at a monthly rent of $307.48 and a minimum monthly concession fee of $200.00, for a term of five years from July 1, 2010 to June 30, 2015, and providing County the right at the termination of the agreement, at its election, to take title to the shop hangar improvements or require Half Moon Bay Aero to remove the improvements and restore the Premises at its cost, and
2. County Manager or his designee to accept or execute notices, options and documents associated with 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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Since 1983, Half Moon Bay Aero (“Aero”) has operated a Fixed Base Operation (“FBO”) under the terms of a land lease and concession agreement for an unimproved portion of the Half Moon Bay Airport. The shop hangar constructed on the site by Aero’s predecssor was purchased by Aero when Aero became the tenant. Aero has operated on a month-to-month basis since 2005, in accordance with the holdover provision of the lease. Negotiations of a new agreement have been intermittent in the interim due to changing priorities at the Airport and the County’s desire to negotiate reversion of the improvements to County ownership.
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Currently, the monthly rent is $307.48, and Aero pays a minimum $200.00 monthly concession fee. The existing agreement gives the County the right to negotiate a purchase of the shop hangar improvements, or to require that Aero remove all improvements at its expense and restore the property to its original condition. The County and Aero desire to enter into a new Lease/Concession Agreement for a period of five years on terms and conditions similar to those contained in the existing lease except that, upon expiration of the term, the County will have the right to take title to the improvements without additional compensation to Aero.
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DISCUSSION:
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Real Property Services has negotiated a Lease/Concession Agreement with Half Moon Bay Aero for a term of five years from July 1, 2010 to June 30, 2015, at a monthly Rent of $307.48 and a $200.00 minimum monthly concession fee. The Agreement provides the County the right, at its election and without further compensation, to take title to the shop hangar improvements or to require Aero to remove the improvements and restore the Premises at its cost. There are no changes to the use of the Premises as a result of this Agreement.
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County Counsel has reviewed and approved the Lease/Concession Agreement and Resolution as to form. The Director of Public Works concurs in this recommendation.
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Approval of the Lease/Concession Agreement contributes to the Shared Vision 2025 outcome of a Collaborative Community by establishing an agreement that benefits the County of San Mateo and HMB Aero while also benefiting the users of the Half Moon Bay Airport.
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FISCAL IMPACT:
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The monthly Rent of $307.48 and minimum monthly concession fee of $200.00 will be deposited to the Airport Enterprise Fund.
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