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
Charles M. Schulz - Sonoma County Airport Agreement for Lease of Real Property
End
Recommended Action:
Recommended action
Approve and authorize Director of Public Infrastructure to execute a lease agreement with F. Korbel & Bros, Inc. for a term of 25 years.
end
Executive Summary:
Approval of this item will authorize a new twenty-five (25) year ground lease with F. Korbel & Bros., Inc. at the Charles M. Schulz-Sonoma County Airport. Korbel’s existing lease expires June 4, 2026, and the proposed agreement will ensure the continued operation of its corporate aviation base at the Airport.
The lease encompasses approximately 0.86 acres (37,477 square feet) on Apron E and includes the purchase of an approximately 11,390 square foot hangar. Year one rent has been established based on published rates and charges, and the hangar purchase price has been determined by an independent third-party appraisal to establish fair market value for the hangar improvements.
The proposed long-term lease provides stability for Korbel’s corporate flight operations while ensuring the Airport receives market-based compensation for the use of Airport property.
Discussion:
F. Korbel & Bros., Inc. has operated its corporate aviation fleet at the Charles M. Schulz-Sonoma County Airport since 2001. The existing ground lease expires on June 4, 2026. Approval of a new lease will ensure continuity of Korbel’s operations and maintain a high-quality tenant at the Airport.
Under the current lease, the arrangement is structured as a ground lease, with the improvements constructed by Korbel during the lease term reverting to the Airport upon expiration. In negotiating the new lease, Korbel elected to lease the underlying land and purchase the existing improvements rather than lease both the improvements and the ground. This structure provides the Airport with fair market value for the hangar, as well as long-term ground rent.
The proposed lease will commence on June 5, 2026, with first-year ground rent of $22,486.20 derived from Board-approved Airport rates and charges. Ground rent will increase annually pursuant to the lease terms. The fair market value and sale price of the hangar were determined by an independent appraisal at $1,650,000, to be paid to the Airport upon commencement of the lease. Korbel will be responsible for all maintenance, utilities, and operational costs associated with the premises throughout the term of the lease.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Organizational Excellence
Goal: Goal 1: Strengthen operational effectiveness, fiscal reliability, and accountability
Objective: Objective 1: Align the Board of Supervisor’s strategic priorities, policy, and operational goals with funding and resources.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
6/5/2001 - #01-0682 Resolution adopting negative declaration and mitigation monitoring program and approving an amendment to the Sonoma Airport Master Plan; authorizing the Chairman to sign a ground lease with Korbel; authorizing construction of hangers; and directing the filing of a notice of determination.
Fiscal Summary
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Expenditures |
FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
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|
|
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Funding Sources |
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|
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General Fund/WA GF |
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|
|
|
State/Federal |
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|
|
|
Fees/Other |
$1,651,873.85 |
$23,310.65 |
$24,243.16 |
|
Use of Fund Balance |
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General Fund Contingencies |
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|
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Total Sources |
$1,651,873.85 |
$23,310.65 |
$24,243.16 |
Narrative Explanation of Fiscal Impacts:
Revenue from hanger sale and one month of rent are included in the FY 2025-26 Airport Operations (41301-34030101) budget, and monthly ground lease revenue for FY 2026-27 and
beyond will be included in Airport Operations Recommended Budgets.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Lease Agreement
Related Items “On File” with the Clerk of the Board:
None.