DATE:
October 16, 2019
07
TO:
Board of Supervisors
SUBJECT
Title
GILLESPIE FIELD - NEW AVIATION LEASE WITH CLASSIC AIRCRAFT HANGARS, INC. (DISTRICT: 2)
Body
OVERVIEW
Gillespie Field is a general aviation airport owned and operated by the County of San Diego's (County) Department of Public Works (DPW) within the municipal limits of the City of El Cajon. The airport includes 19 aviation leases and is a gateway to and from San Diego's east county providing infrastructure, facilities, and services to corporate and general aviation communities. Leasing of airport property generates lease revenue within the airport enterprise fund, which is used by DPW to ensure that all County airports are properly maintained and safe for airport users.
On September 11, 1984 (82), the Board of Supervisors approved a 30-year aviation lease for aircraft storage hangars with Classic Aircraft Hangars, Inc. (Classic), which commenced on October 1, 1984. On April 14, 1999 (10), the Board of Supervisors approved a new 30-year aviation lease with Classic, which replaced their previous lease for the same premises. The current lease commenced on April 1, 1999 and is scheduled to terminate on March 31, 2029. The lease was amended on February 24, 2010 (12), to adjust rent and revise certain lease provisions. Classic has requested to extend its cumulative tenancy on the leasehold to 50 years, which is the maximum allowed by Government Code Section 50478. As a result, the Classic lease could be extended through 2034. DPW and Classic have negotiated a new lease as summarized below.
This is a request to approve a new 14-year 10-month aviation lease to replace the existing lease with Classic, beginning on December 1, 2019 and ending on September 30, 2034. Approval of this action would provide the County with updated lease language including environmental sustainability provisions, increased rental revenue, and a one-time equity payment from the lessee. If the proposed action is approve...
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