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Approve a 30 year Ground Lease Agreement with Bubba Air, LLC (David Goodhue) for a lease area of 4,800 square feet, for an initial annual rate of $4,992, to allow construction of an aircraft hangar on the Nut Tree Airport; and Authorize the County Administrator 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 with Bubba Air, LLC (David Goodhue) for a lease area of 4,800 square feet, for an initial annual rate of $4,992, to allow construction of an aircraft hangar on the Nut Tree Airport (Attachment A); and
2. Authorize the County Administrator to execute the agreement and any amendments.
SUMMARY:
Bubba Air, LLC, a private corporation, proposes to construct a 4,800 square foot aircraft hangar on the Airport for private use. The hangar will be used for aeronautical purposes including aircraft storage, maintenance, repair and restoration. 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. The recommended action includes the approval of a long-term ground lease.
FINANCIAL IMPACT:
Annual rent on the ground lease will start at $4,992 per year and increase annually at a fixed rate of 3% over the term of the lease. The ground lease rate is based on current rates of comparable leases on the Airport and as advertised in Airport development marketing literature. Total rent collected during the first 10-year period of the lease will be $57,228. Over the 30 year lease term, rents collected by the County will total $237,496. Rent proceeds will go to the Nut Tree Airport in support of Airport operations and capital improvements.
Property taxes on the proposed hangar improve...
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