Memorandum
Date: September 10,2024
To: The Honorable Lake County Board of Supervisors
From: Glen March, Public Works Director
Subject: Approve Renewal of the Lease Agreement between the County of Lake and Skypark Properties, LLC for the Lampson Field Airport Pilots’ Lounge and Authorize the Public Works Director to Sign the Renewal Letter
Executive Summary:
On November 5, 2019, the County of Lake Board of Supervisors approved a commercial lease agreement of the 720 sq. ft. building at 900 Skypark Drive between the County of Lake (County) and Skypark Properties, LLC (Skypark) dated November 5, 2019 (Agreement), to use as a pilots’ lounge. The original three-year term was from October 15, 2019 to October 15, 2022. The lease amount was one thousand dollars ($1,000) per month for the first three-year period. The total lease amount for the first three years was approximately $36,000 (years 1, 2, and 3).
The Agreement allows for the County to extend the lease agreement for two-year periods with an annual increase of 3% each year the Agreement is renewed by the County. The Agreement requires the County to notify Skypark at least one-month prior to the end of the existing lease term.
On June 20, 2022, the Public Works Director requested a two-year extension to the Agreement. The total lease amount for the first two-year extension is approximately $25,090 (years 4 and 5).
The Public Works Director wishes to extend the lease agreement for an additional two-year period. The Agreement requires that the lease amount increase 3% each year of the renewal periods, therefore, the monthly lease amount for the first year of the extension will be $1,092.72 and the second year of the extension will be $1,125.51. The total lease amount for the second extension will be approximately $26,619 (years 6 and 7). The total lease amount for seven years will be approximately $87,709.
The costs of the lease are paid from County General Funds.
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Recommended Action:
Staff recommends that the Board approve the renewal of the lease agreement for the pilots’ lounge located at 900 Skypark Drive between the County and Skypark and authorize the Public Works Director to sign the renewal letter.