DATE:
May 1, 2024
03
TO:
Board of Supervisors
SUBJECT
Title
GILLESPIE FIELD - FIFTH AMENDMENT TO INDUSTRIAL LEASE WITH VERIDIAM, INC. FOR SCHEDULED RENT ADJUSTMENT ONLY AND RELATED CEQA EXEMPTION (DISTRICT: 2)
Body
OVERVIEW
Gillespie Field is in the City of El Cajon and is one of eight airports owned by the County of San Diego (County) and operated by the County Department of Public Works (DPW). The County airports system is operated, maintained, and improved using lease revenues and federal and State grant funding. Gillespie Field airport infrastructure and facilities include runway, taxiways, air traffic control tower, communications, and related equipment. Services available to corporate and general aviation users at this airport include hangar and tie-down rentals, aviation fuel sales, aircraft repair, maintenance, parts, pilot supplies, and flight training. The airport serves the public by housing aviation facilities and equipment operated by local law enforcement agencies, aerial firefighting, and other emergency services providers. Gillespie Field also includes industrial-zoned land that accommodates uses compatible with the airport. Leasing of airport land generates revenue for the Airport Enterprise Fund, which is used by DPW to ensure that all County airports are properly maintained and safe for airport users and the surrounding communities.
Veridiam, Inc. (Veridiam), a leading custom tubing manufacturer, formerly known as Carpenter Special Products Corporation, occupies a 6.42-net acre parcel at Gillespie Field. The Board of Supervisors (Board) approved the existing ground lease on June 22, 2005 (11). The 35-year lease, with a 20-year extension option, commenced on May 1, 2004, and has been amended four times. The lease provides for periodic rental rate renegotiations every five years to keep pace with market rates. The upcoming renegotiated rental adjustment is due on May 1, 2024. Based on the recent appraisal of a nearby leasehold, whic...
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