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Approve a 30 year Ground Lease Agreement with NACA 130, LLC (Steven Coutches) for a lease area of 8,045 square feet, for an initial annual rate of $8,367, to allow construction of an aircraft hangar on the Nut Tree Airport; and Authorize the County Administrator, or designee, to execute the agreement and any amendments
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a 30 year Ground Lease Agreement (Attachment A) with NACA 130, LLC (Steven Coutches) for a lease area of 8,045 square feet, for an initial annual rate of $8,367, to allow construction of an aircraft hangar on the Nut Tree Airport; and
2. Authorize the County Administrator, or designee, to execute the agreement and any amendments.
SUMMARY:
NACA 130, LLC (NACA), a private corporation, proposes to construct an 8,045 square foot aircraft hangar on the Airport for private use. The hangar will be used for aeronautical purposes including aircraft storage, maintenance, repair, restoration, and display. The hangar site is located within the Phase 1 Aeronautical Development Area identified in the Nut Tree Airport Business Plan. The location for the proposed hanger is shown on Attachment B.
FINANCIAL IMPACT:
Development of the proposed hangar and related improvements will be funded 100% by NACA. Annual rent on the recommended ground lease will start at $8,367 per year and increase annually at a fixed rate of 3% over the term of the lease. The recommended ground lease rate is based on current rates of comparable leases on the Airport as advertised development marketing literature for the Airport. The ground lease is for a 30 year term to allow project financing during the lease term. Total rent during the first 10-year period will be $95,918. Over the 30 year lease term, rent collected by the County is approximately $398,0...
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