Special Notice/Hearing: None__
Vote Required: 4/5 Vote
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Lease and Concession Agreement with San Carlos Flight Center, Inc., at the San Carlos Airport (Lease No. 5343)
RECOMMENDATIONS:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute a Lease and Concession Agreement with San Carlos Flight Center, Inc., to allow the continued occupancy of the 3,327 square foot office and classroom space, known as Suite A of 795 Skyway Road, and add use of the 7,600 square foot hangar space and 1,167 square foot half hangar space, both also located at 795 Skyway Road, for the continued term from August 13, 2024, through August 12, 2029, with one (1) option to extend the term for five (5) years, at an initial monthly Base Rent of $19,625, plus monthly Concession Fees, charged at $500 per use, and monthly Utility Fees at $1,179, with the Base Rent subject to annual three percent increases; and
B) The Director of Public Works, or their designee, to accept or execute notices, options and documents associated with the Agreement including, but not limited to, extension or termination of the agreement under the terms set forth therein.
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BACKGROUND:
San Carlos Flight Center, Inc. (“SCFC”) has operated a flight school at the San Carlos Airport (“Airport”) since 2012. The most recent Lease and Concession Agreement, dated September 29, 2020, provided SCFC the use of the 3,327 square foot office and classroom space. SCFC desires to expand their maintenance operations and assume use of the 7,600 square foot hangar space, and the 1,167 square foot half hangar space.
DISCUSSION:
The County has negotiated a Lease and Concession Agreement with SCFC for an initial term of five (5) years, with one 5-year option to extend the term, at a monthly Base Rent of $19,625, with three percent annual increases. Additionally, SCFC pays monthly Concession Fees for the rights and privileges received from the aircraft rental and flight training and maintenance activities. Such Concession Fees are charged at $500 per activity per month, for a total of $1,000 per month. In addition to the monthly Base Rent and Concession Fees, SCFC pays a total monthly Utility Fee of $1,179 for the Premises and common areas.
EQUITY IMPACT:
The County of San Mateo is dedicated to ensuring equitable access to quality services for all residents. The County acquires and leases real property to ensure all residents can access services in the locations and facilities best suited to their specific purposes. This acquisition will further the County’s ability to ensure that critical services for residents can continue to be met.
FISCAL IMPACT:
The Office Space Funds set forth herein is estimated at a minimum $245,328 annually, and will be deposited into the Airport Enterprise Fund. There is no impact to the General Fund.