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 JATO Aviation, LLC, for Office Space at the San Carlos Airport (Lease No. 5321)
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 JATO Aviation, LLC (“JATO”) authorizing JATO’s continued use of 1531 square feet of office space, known as Suite 8 in the San Carlos Airport Terminal Building, 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 $4,134, plus $628 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. 5321)
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BACKGROUND:
JATO has leased the office space, known as Suite 8, at the San Carlos Airport Terminal Building since June 26, 2007. JATO provides aviation related activities including small aircraft flight training, aircraft rentals, aircraft management, and charter services. 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 Four Thousand One Hundred Thirty-Four Dollars ($4,134), based on $2.70 per square foot per month for the 1531 square foot office space (“Suite 8”), plus Six Hundred Twenty-Eight Dollars ($628) 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 Lease 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 key community asset that supports regional mobility, emergency response, and economic activity within San Mateo County.
Flight training providers, such as JATO, 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.
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 JATO lease/concession is $61,608 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.