Item Number: 18
City Council / Board of Directors
Written Communications
Meeting of: September 15, 2026
Submitted By:
James Murawski, Airport Director
Subject:
Standard Lease Agreement for Building 652 and Yard Space by and between the Southern California Logistics Airport Authority and Adonai Enterprises, Inc Recommendation:
That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors:
(1) Approve entering into a Standard Lease Agreement for Building 652 and Yard Space (“Agreement”), by and between the SCLAA and Adonai Enterprises, Inc; and
(2) Authorize the Executive Director to execute said Agreement; and (3) Adopt Resolution No. SCLAA 26-003 amending the 2026/2027 budget increasing revenue in Airport account 4501106A-45200 by $18,040.72 and Airport account 4500125-45220 by $1,143.95.
Fiscal Impact:
Approval of the Agreement presented herein will generate approximately $846,063.88 in gross revenue over the initial term of the Agreement from October 1, 2026, through September 30, 2031. The table below outlines the first four fiscal years summarized.
Fiscal
Year
FY 2026 - 2027
July - June
FY 2027 - 2028
July – June
FY 2028 - 2029
July – June
FY 2029 - 2030
July – June
Gross
Revenue $119,520.00 $162,945.60 $167,833.97 $172,868.99 The revenue associated with this Agreement increases the budgeted revenue established in Airport account 4501106A-45200 by $18,040.72 and Airport account 4500125-45220 by $1,143.95 for fiscal year 2026-2027 and thereby requires an additional revenue appropriation as displayed in the following table.
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Current Budget Fiscal Year 2026-2027
Building 652 Revenue 4501106A-45200 $130,690.00
Ground Lease Revenue 4500125-45220 $1,835.00
Proposed Budget Fiscal Year 2026-2027
Building 652 Revenue 4501106A-45200 $148,730.72
Ground Lease Revenue 4500125-45220 $2,978.95
Resolution No. SCLAA 26-003
Building 652 Revenue 4501106A-45200 $18,040.72
Ground Lease Revenue 4500125-45220 $1,143.95
Future appropriations for the subject Agreement will be considered at the time the annual budget is approved.
Strategic Plan Goal:
The City of Victorville Strategic Plan 2023-2026 identifies multi-year strategic goals and various strategies to work toward achieving those goals. Goal A fosters fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery.
Background:
Adonai Enterprises, Inc., (“Adonai”) was incorporated in 1996 by Jefferey Mathews, and started as a small garage-based business in California. With over 20 years in business, Adonai established locations in Newark, Seattle, Portland and Denver. Adonai serves as a “One-Stop Shop” for material handling, manufacturing equipment and machinery needs.
Adonai specializes in industrial and facilities, preventative maintenance, repair and installation. Adonai also offers in-house fabrication, mechanical design and structural engineering to complete jobs from start to finish.
Discussion:
Ray Joye Machine and Fabrication Inc is the current tenant of Building 652. Adonai will be purchasing Ray Joye Machine and Fabrication Inc and wishes to enter into a five-year lease agreement (“Agreement”) for Building 652 and Yard Space. The Agreement also contemplates one additional, five-year Option Term. This is a revenue producing, standard lease agreement for Building 652 and Yard Space by and between the Southern California Logistics Airport Authority and Adonai Enterprises Inc. The purpose of Building 652 and Yard Space will be for the use of the manufacturing, fabrication, assembly, administrative duties and other related activities pertaining to a machine and fabrication shop. The leased premises consist of Building 652 and Yard Space, which is comprised of approximately 20,000 square feet of office and warehouse space, and 5,600 square feet of Yard Space. Adonai has agreed to pay $13,280 per month with an annual 3% inflator. This amounts to approximately $.65 per square foot of warehouse and office 4 9
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space and $.05 per square foot for Yard Space which is comparable to similar SCLA buildings and ground space.
Because the Standard Lease Agreement will maintain local employment, Adonai plans to maintain the current employees of Ray Joye Machine and Fabrication Inc, and will produce a steady revenue stream, staff recommends that the Southern California Logistics Airport Authority Board of Directors: (1) approve the Standard Lease Agreement with Adonai Enterprises, Inc., for Building 652 and Yard Space and (2) authorize the Executive Director to execute said agreement and (3) adopt Resolution No. SCLAA 26- 003 increasing revenue in account 4501106A-45200 by $18,040.72 and Airport account 4500125-45220 by $1,143.95. Such approval is being requested, subject to any minor, non-substantive modifications to the Lease Agreement as approved by the Southern California Logistics Airport Authority Legal Counsel and the Southern California Logistics Airport Authority Executive Director.
Staff remains available for any questions or comments you may have.
Prepared By:
Jacob Kern, Airport Leasing Technician
Attachments: A. General Site Map
B. Standard Lease Agreement for Building 652 and Yard Space C. Resolution No. SCLAA 26-003