DATE: FEBRUARY 7, 2023
DEPARTMENT: PUBLIC WORKS, AIRPORT DIVISION
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: BRETT J. GODOWN, C.M., C.A.E., AIRPORT MANAGER
TITLE: AMENDMENT NO. 1 TO THE GROUND LEASE BETWEEN THE CITY OF SALINAS AND GOLD COAST AVIATION SERVICE, INC. AT THE SALINAS MUNICIPAL AIRPORT RECOMMENDED MOTION:
A motion approving a resolution approving Amendment No. 1 to the ground lease between the City of Salinas and Gold Coast Aviation Service, Inc.
RECOMMENDATION:
It is recommended the City Council approve a resolution approving Amendment No. 1 to the ground lease between the City of Salinas and Gold Coast Aviation Service, Inc.
BACKGROUND:
On September November 20, 1978, by way of Resolution No. 9940, Gold Coast Aviation Service, Inc. (Gold Coast) entered into a 50-year ground lease agreement with the City of Salinas for 0.574 acres of land, more particularly described in Exhibit A – Legal Description of the lease. The physical address of the Premise is 45 Mortensen Ave., Salinas, CA 93905.
Gold Coast desires to modify the Use of Leased Premises. The uses authorized in the existing lease include “repair, maintenance, sales of aircraft, and parts or incidental uses mutually agreed upon by Lessor and Lessee in writing, and for no other purposes.” Gold Coast desires to modify the Use of Lease Premises to:
“The leased premises shall be used for the following:
Specialized Aviation Service Operator (“SASO”) - a commercial aeronautical business that is authorized to offer a single or limited service according to established Minimum Standards. Examples of a SASO include but are not limited to the following commercial aeronautical activities: flight training, aircraft maintenance, unmanned aerial systems research and development, avionics maintenance, aircraft sales, and aircraft storage.
Aircraft maintenance and avionics maintenance are limited to maintenance, repair, overhaul, modification, light manufacturing, and associated services related to aircraft, aircraft engines, and airframes; automatic flight systems; instruments, radio electronic equipment, propellers, and all, other aircraft components. Storage and service of equipment directly related to business operations.
Incidental uses necessary for operating a SASO.”
At the January 26, 2023, Airport Commission meeting, the Commission recommended City Council adopt a resolution approving Amendment No. 1 to the ground lease between the City of Salinas and Gold Coast.
ANALYSIS:
Lease and Amendment No. 1 Terms:
Use of Leased Premises:
The proposed uses are similar to other existing buildings and leaseholds at the airport and is consistent with the Airport Minimum Standards and City Zoning Code.
Insurance:
Attachment C – Insurance Requirements will be incorporated into the Original Lease. The requirements bring the lease up to current City standards and reflect types of usage.
Effective Date:
This Amendment will be effective as of February 7, 2023.
No Further Modifications:
All other provisions in the original Lease and Amendment No. 1, will remain in full force as per the original lease.
Airport Minimum Standards – June 2009
Permit/Lease. Persons desiring to conduct aeronautical activity or service wherein the use of the Airport provides a commercial benefit to the said person must negotiate an Airport Use Permit and/or Lease with the Airport or a sublease with a master lessee of the Airport. The Lessee complies with this provision of the Airport Minimum Standards.
FAA Required Lease Provisions. The Lease complies with this provision of the Airport Minimum Standards.
Minimum Qualifications – ADA Requirements. The Lease requires the Lessee to comply with City Codes and ordinances/ Minimum Qualifications – Aircraft Maintenance Services and Sale of Parts and Accessories. The Lease allows for these existing uses.
Minimum Qualifications – Aircraft Rental. The Minimum Standards require that aircraft rental business at the Airport shall lease from the City or provide, under terms agreeable to the Airport, an area of airport land sufficient in size to provide the space needed for aircraft storage, vehicle parking, and tiedown of all of its aircraft. The Premise is sufficient for Aircraft Rental Services. If facility improvements are needed to accommodate uses, the Lessee must obtain necessary permits from the City to make improvements. If the Lessee requires additional aircraft storage, the Lessee and City can negotiate additional aircraft parking as needed.
Minimum Qualifications - Specialized Aeronautical Service Operator (SASO) Provider, Unmanned Aerial Systems (UAS) Research and Development. The Minimum Standards do not contemplate all possible uses. A common theme among all aeronautical uses is that the lease area must have sufficient land, building/facilities, and parking to accommodate the proposed uses. SASO and UAS uses have been included in the permitted uses as they are consistent with existing uses on the airport, and the Lessee is required to have sufficient uses for all activities on the leasehold.
City Municipal Code
Chapter 37 – Zoning; Article III - Base Zoning Regulations; Division 7 – Public/Semipublic (PS) District. The Airport Area is zoned Public/Semipublic. Airport-related uses shall only be allowed in a PS district that is contiguous to the Salinas Municipal Airport. The proposed uses are aeronautical in nature and located on the Airport.
CEQA/NEPA CONSIDERATION:
The City of Salinas has determined that the proposed action is statutorily exempt as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15268(a)).
STRATEGIC PLAN INITIATIVE:
This action supports the City Council’s Strategic Plan Goal for Economic Development.
DEPARTMENTAL COORDINATION:
The City of Salinas Airport Facility Lease was reviewed as to form by the City Attorney.
FISCAL AND SUSTAINABILITY IMPACT:
The execution of this amendment will have no fiscal impact.
ATTACHMENTS:
Original Lease between the City of Salinas and Gold Coast Aviation Service, Inc.
Resolution - Resolution approving Amendment No. 1 to the lease between the City of Salinas and Gold Coast Aviation Service, Inc. at the Salinas Municipal Airport.
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