Special Notice/Hearing: None__
Vote Required: 4/5ths+_
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Lease/Commercial Operator Agreement with Pelican Flight Training LLC, DBA Fly Bay Area for Office Space at the San Carlos Airport (Lease No. 5347)
RECOMMENDATIONS:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute the Lease/Commercial Operator Agreement (“Lease”) with Pelican Flight Training LLC, DBA Fly Bay Area (“Fly Bay Area”) authorizing Fly Bay Area’s continued use of 540 square feet of office space, in the San Carlos Airport Terminal Building, known as Suite 7, located at 620 Airport Way, in San Carlos, and continued provision of commercial aviation services at the Airport, for an initial term of five (5) years, with one option to renew for an additional five (5) years, at an initial monthly rent of $1,458, plus $221 per month for utilities, with annual 3% increases, plus $500 per month for each aviation service provided; and
B) The Director of Public Works, or their designee, to approve additions or removals of authorized commercial operations under the Lease, and accept or execute on behalf of the County, any and all notices, options, amendments and documents associated with the Lease including, but not limited to, extension or termination of the Lease under the terms set forth therein. (Lease No. 5347)
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BACKGROUND:
Fly Bay Area has leased the office space, known as Suite 7, at the San Carlos Airport Terminal Building since July 1, 2012. Fly Bay Area provides aviation related activities including small aircraft flight training, aircraft rentals, and aerial tours. The office space serves as staff office space and client waiting area.
DISCUSSION:
The Department of Public Works has negotiated a monthly rental amount of One Thousand Four Hundred Fifty-Eight Dollars ($1,458), based on $2.70 per square foot per month for the 540 square foot office space (“Suite 7”), plus Two Hundred Twenty-One Dollars ($221) per month for its proportionate share of utilities (collectively referred to as “Monthly Rent”). These rates represent the fair market value for aviation use, as determined by a recent appraisal. Monthly Rent will be subject to 3% annual increases, and the term of the agreement will continue through June 22, 2031, with one option to extend the term for five years.
The proposed Lease represents a continuation and extension of an existing lease with a current airport tenant in good standing. Pursuant to California Government Code Section 50478, local agencies are authorized to extend, renew, or enter into a new lease with an existing airport tenant without requiring a competitive Request for Proposals (RFP) process. As such, an RFP was not conducted for this Lease because it does not constitute a new leasing opportunity, but rather the continuation of an established aeronautical service provider at the Airport.
The Airport will continue to utilize competitive RFPs for all vacant spaces and new leasing opportunities, in accordance with applicable law and County policy, to promote transparency, fair access, and the selection of qualified operators that provide the greatest overall value to the County.
COMMUNITY IMPACT:
The San Carlos Airport is a critical community asset that supports emergency services, business activity, and regional mobility within San Mateo County.
Flight training providers, such as Fly Bay Area, play a key role in preparing future pilots and aviation professionals at a time of growing demand within the industry. These services expand access to aviation careers, support workforce development and local employment opportunities, and strengthen the County’s connection to regional and national transportation networks.
Fly Bay Area was an early adopter of sustainable aviation practices and operates its fleet exclusively on unleaded aviation fuel, despite the additional cost, supporting the County’s broader environmental and sustainability goals. Maintaining established aviation operators at the Airport helps preserve essential services, supports economic activity, and ensures the Airport continues to serve as a reliable and accessible resource for the community.
FISCAL IMPACT:
The estimated revenue from the Fly Bay Area lease/concession is $29,496 annually, plus applicable fuel flowage and aircraft parking fees. All revenue will be deposited into the Airport Enterprise Fund. There is no impact on the General Fund.