ADMINISTRATIVE REPORT
MEETING DATE: July 23, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: July 23, 2025
SUBJECT: Amendment No. 2 to Agreement No. 95-153
with Richard Osborn, Jr. (extend term to May 31, 3030) for Bakersfield Municipal Airport Long-Term Ground Lease Agreement for Hangar Space A-10. (Ward 1)
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
The Long – Term Ground Lease Agreement for hangar A -10, currently leased to Richard Osborn, Jr., has completed the full term and terminated on May 31, 2025. At the end of the term, the lease agreement allowed Richard Osborn, Jr., to remove Hangar A-10 at his expense.
It is desirable for Hangar A-10 to remain at the airport so that it can continue to have aviation-related use under airport ownership. This extension will allow the airport to continue to lease Hangar A-10 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 property of the City at the end of the (5) – year lease, and the City would then rent out the hangar at the fair market rate for the remaining life of the hangar. Richard Osborn, Jr. 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 impac t to the General Fund.
COUNCIL GOAL:
Economic Opportunity for All
Reliable Infrastructure
ATTACHMENTS:
Amendment