To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
Real Property Interest - Request for Transfer
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Recommended Action:
Recommended action
A) Approve and authorize the Airport Manager to sign a ground lease transfer of ownership interest for 2335 Becker Blvd. hangar located at Charles M. Schulz - Sonoma County Airport from Truair, LLC (“Assignor”) to 2335 Becker, LLC (“Assignee”).
B) Approve and authorize the Director of Sonoma County Public Infrastructure to authorize modifications to the ground lease terms including any additional permitted uses for the premises once permit authorization has been obtained from Sonoma County Permit and Resource Management Department (PRMD) for the hangar located at 2335 Becker Blvd. Charles M. Schulz - Sonoma County Airport.
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Executive Summary:
Truair, LLC ("Assignor"), owner of the hangar located at 2335 Becker Boulevard, has entered into an agreement with 2335 Becker, LLC ("Assignee") for the sale of a 20,158-square-foot hangar building and associated apron, parking, landscaping, and other site improvements (collectively, the "Improvements").
The Assignor is the tenant under a Ground Lease with the Charles M. Schulz - Sonoma County Airport for approximately 0.99 acre, which commenced on April 1, 2017, and has approximately 32 years remaining in its term. Pursuant to the Ground Lease, the Assignor owns the Improvements and may transfer its leasehold interest and ownership of the Improvements, subject to the County's approval.
The proposed transaction includes the assignment of all rights, responsibilities, and obligations under the existing Ground Lease to the Assignee, subject to approval by the Sonoma County Board of Supervisors in accordance with the terms of the Lease. Airport staff have reviewed the proposed assignment and determined that the Assignee meets all applicable Airport requirements and minimum standards.
Staff recommends the Board approve the lease assignment and authorize the Airport Manager to execute all documents necessary to effectuate the transfer.
Discussion:
On March 7, 2017, the Board of Supervisors approved a 40-year ground lease with TruAir, LLC for the development of an approximately one-acre site at the Charles M. Schulz-Sonoma County Airport. The lease original lease term commenced upon execution through June 30, 2046, with two optional five-year extensions. The initial annual rent of $19,437 was abated for the first twelve months of the lease, or until substantial completion of construction, whichever occurred first. Thereafter, rent is adjusted annually based on changes in the Consumer Price Index. In addition to base rent, the tenant is required to pay three percent (3%) of gross receipts generated from commercial operations conducted on the premises.
Pursuant to the lease, TruAir, LLC constructed a 20,158-square-foot facility consisting of a 15,739-square-foot aircraft storage hangar and 4,419 square feet of associated office space. The project also included demolition of two existing maintenance buildings, construction of a parking area along Becker Boulevard, and additional paving to provide aircraft access between the hangar and Apron D taxiway.
In 2023, the Seller (Truair, LLC) listed the Improvements for sale, and a purchase and sale agreement was finalized in May 2026. The Seller has requested approval to assign its leasehold interest and transfer ownership of the Improvements to the Assignee (2335 Becker, LLC). Pursuant to Section 10 of the Lease Agreement, any assignment or transfer of the leasehold interest or ownership of the Improvements requires approval by the Sonoma County Board of Supervisors.
Airport staff have reviewed the proposed assignment and supporting documentation, including ownership information, financial information, the estoppel certificate, proposed use, and compliance history. Staff have determined that the Assignee is financially capable of assuming the obligations of the Lease Agreement and operating in compliance with Airport rules and regulations, lease requirements, and applicable County standards.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
03/07/2017 - Ground Lease Approval TruAir
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
The approval of this lease transfer does not change the underlying terms and conditions of the original lease agreement approved by the Board on March 7, 2017. As such, there is no impact on expense or revenue appropriations in the FY 2026/27 Airport Operations (41301-34030101) Adopted Budget or future Recommended Budgets. The current ground rent for this parcel is $2046.84 per month.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
None.
Related Items “On File” with the Clerk of the Board:
TruAir 2017 Ground Lease and transfer notice