The San Diego County Board of Supervisors has approved a revised lease agreement for the land Murray Investment Company utilizes at Fallbrook Community Airpark.
The previous lease agreement had called for the rent to be renegotiated to market rate effective Nov. 1. The supervisors’ 5-0 vote Sept. 13 increases the monthly rent from $420.81 to $430.00 effective Nov. 1.
“This ensures the lease is updated, the park is at full cost recovery and it gives us an opportunity to revise the language for our airport tenants,” Supervisor Bill Horn said.
The board of supervisors approved a 30-year lease with Fallbrook Flyers in June 2002 for 0.976 acres at Fallbrook Community Airpark. Fallbrook Flyers developed storage hangars and leased them to airport users. Fallbrook Flyers assigned its leasehold interest to Murray Investment Company in March 2015.
The board of supervisors approved a revised lease with Murray Investment Company in October 2015. The new 30-year lease extended the lease period until Oct. 31, 2045. The lease included rent adjustments; the initial $415 monthly base rent was subject to annual rent adjustments based on the Consumer Price Index and periodic rental rate negotiations based on market conditions.
The 2017 date for the initial renegotiation matches the schedule for most other aviation leases at Fallbrook Community Airpark, and the Murray Investment Company rent will subsequently be renegotiated every five years.
The rent is based on a rate of $440 per acre per month. Murray Investment Company agreed to that new rate, and on May 1, the Fallbrook Airpark Advisory Committee voted 5-0 to approve the lease amendment. The amended lease also updates contact information and revises the lease language based on current standards regarding accessibility disclosures, storm water discharges and non-stormwater discharges.
Standard ground leases revert improvements to the county after the lease ends. Because the 2015 lease will postpone county ownership of the Fallbrook Flyers improvements, the county and Murray Investment Company also agreed to a one-time equity payment of $59,146 to compensate the county for the delay in county ownership. The 2015 lease agreement also required Murray Investment Company to invest at least $65,000 into capital improvements at the leasehold within the first three years of the new lease.