Special Notice/Hearing: None__
Vote Required: 4/5 Vote
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Ground Lease with Edward J. Andreini and Bryan Falvey at Half Moon Bay Airport (Lease No. 5082)
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute a Ground Lease (“Ground Lease”) with Edward J. Andreini and Bryan Falvey, as individuals, to allow the continued occupancy of the 32,000 square foot land area at the Half Moon Bay Airport, in Half Moon Bay, California, for one five-year term through March 24, 2030, with two options to extend the term for five years each, at an initial monthly Base Rent of $2,533 per month, with annual 3% increases; and
B) The Director of Public Works, or their designee, to accept or execute notices, options and documents associated with the Ground Lease including, but not limited to, extension or termination of the Ground Lease under the terms set forth therein (Lease 5082).
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BACKGROUND:
On December 4, 1980, Edward J. Andreini Sr. and Mike Falvey (“Operator”) purchased from the prior operator an 11,130 square-foot structure containing twelve (12) hangars at the Half Moon Bay Airport, known as the North Hangar, and in 1981, Operator entered into a lease agreement with the County for the leasing of the land area on which the North Hangar is situated (“Initial Premises”), to provide hangar space for owners of non-commercial aircraft. The lease was subsequently renewed in 1996. Since then, Operator has continued to occupy the Initial Premises with the County’s permission on a month-to-month basis.
Operator now wishes to renew the lease, and for this lease renewal, Edward J. Andreini, son of Edward J. Andreini Sr., and Bryan Falvey, son of Mike Falvey, will assume all rights, responsibilities, and obligations under the lease as successors-in-interest and signatories. The Initial Premises will be expanded to include the surrounding exclusive-use taxilane and will consist of approximately 32,000 square feet of land (“Premises”). The North Hangar remains the property of the Operator and will be surrendered or removed by Operator, upon County’s decision at the termination or expiration of the lease term. Operator is solely responsible for all maintenance and repairs of the structure, as well as for ensuring taxilanes remain in good condition, free of cracks or potholes, throughout the duration of the lease.
DISCUSSION:
The Airport Division of the Department of Public Works and Real Property Services have negotiated a monthly base rental amount of Two Thousand Five Hundred Thirty-Three Dollars ($2,533) for lease of the Premises (hereinafter “Base Rent”). The Operator shall make all arrangements for and payment of all applicable utilities. The Base Rent will be subject to a 3% annual increase, and the term of the agreement will continue through March 24, 2030, with two options to extend the term for five years each.
The existing hangars are privately-owned and have been managed by the Andreini and Falvey families, through a ground lease with the County, since 1981. These hangars offer low-cost aircraft storage at the Half Moon Bay Airport. Under California Government Code § 50478(b)(2), a new airport lease with the same or a related party, for a term up to 50 years, does not require an RFP.
County Attorney has reviewed and approved the resolution and Ground Lease as to form, and the Director of Public Works concurs in this recommendation.
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 lease not only supports aviation operations but also serves as a hub for community-focused volunteer groups, including the Disaster Airlift Response Team and the Experimental Aircraft Association. These organizations play a vital role in emergency response and youth STEM education, making aviation more accessible and strengthening the airport’s connection to the local community.
FISCAL IMPACT:
The Base Rent set forth herein is estimated at $30,400 annually and will be deposited into the Airport Enterprise Fund. There is no impact to the General Fund.