ADMINISTRATIVE REPORT
MEETING DATE: January 8, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: November 27, 2024
SUBJECT: Amendment No. 1 to Agreement No. 94-163
Amendment No. 1 to Agreement No. 94-163 (extend term to July 31, 2029) for Bakersfield Municipal Airport Long-Term Ground Lease Agreement with George B. Moss also known as G.B. Moss for Hangar Space D2. (Ward 1)
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
The Long – Term Ground Lease Agreement for Hangar D2, currently leased to George B. Moss also known as G.B. Moss, has completed the full term and terminated on July 31, 2024. At the end of the term, the lease agreement allowed Gary B. Moss to remove Hangar D2 at his expense.
It is desirable for Hangar D2 to remain at the airport so that it can continue to have avi ation-related use under airport ownership. This extension will allow the airport to continue to lease Hangar D2 to produce income that can be used to pay for airport expenses and maintenance.
Staff recommends one (1) additional five (5) – year extension in exchange for the addition of a reversion clause at the end of the five (5) – year extension. That would allow the hangar to become the property of the City at the end of the (5) – year lease, and the City could then rent out the hangar at the fair market rate for the remaining life of the hangar. George B. Moss benefits because he would only pay the land lease rate (which is a lower rate) for the next five (5) years and not the fair market rental rate.
FISCAL IMPACT:
As this is a lease that generates revenue, the revenue covers the cost therefore, there is no fiscal impact to the General Fund.
COUNCIL GOAL:
Economic Opportunity for All
Reliable Infrastructure
ATTACHMENTS:
Signed Amendment No. 1 to Agreement No. 94-163