County extends lease with Fallbrook Air Service

The County of San Diego has extended its lease with Fallbrook Air Service, Inc., for 3.71 acres at Fallbrook Community Airpark.

Although rain impacts in the neighborhood of Supervisor Ron Roberts delayed his arrival at the Jan. 25 San Diego County Board of Supervisors meeting until after the vote, the other four supervisors voted in favor of the new 20-year lease which will expire Jan. 31, 2037.

"I'm happy with it," said Supervisor Bill Horn. "I think they've done a good job."

The runway at Fallbrook Community Air Park was completed in October 1964. The County of San Diego owns the 290-acre airport, and in 1968 the county and Fallbrook Community Air Park, Inc., agreed to a lease for the entire premises. Harry and Yvonne Aberle owned Fallbrook Community Air Park, Inc., which operated the airport until the county took over operations in 1997.

In June 1988, the county agreed to a sublease between Fallbrook community Air Park, Inc., and Fallbrook Air Park Hangar Services, Inc., for .20 acres. That lease agreement called for the development of hangars.

When the county took over operations of the airport, "Air Park" was changed to "Airpark" and the county began working with Fallbrook Airpark Hangar Services, Inc., on a lease directly from the county. That lease agreement had an expiration date of December 23, 2018.

In September 2000, the county supervisors approved an amended lease increasing the premises to 3.71 acres. In 2001, the county approved a sublease from Fallbrook Airpark Hangar Services to Yvonne Aberle and, in February 2003, the county changed the agreement to allow Fallbrook Air Service to take over the sublease.

Tom Aberle, who owns Fallbrook Air Service, is the son of Harry and Yvonne Aberle.

instruction, hangar and tie-down rental, aircraft maintenance services, and sales of aircraft parts and pilot supplies. County Airports staff and Fallbrook Air Service negotiated a new lease which allows the Aberle family to be able to develop plans for beyond the 2018 termination date of the previous lease.

"We're very pleased that we're able to get a new lease with a long-term tenant," said County Airports project manager for airport real estate Lee Ann Lardy.

"We're happy that they're going to do business at the airport," said County Airports director Pete Drinkwater.

Fallbrook Air Service will pay an initial base monthly rent of $1,614, which is $393 per month above the current monthly rent of $1,221 but is consistent with rental rates paid by other aviation leaseholders at Fallbrook Community Airpark.

The base monthly rent will be subject to annual cost of living adjustments and to periodic rental rate renegotiations. The first negotiated adjustment will take effect on Feb. 1, 2013, and the rental rate will be then renegotiated every five years.

The new lease also includes an equity payment of $202,300 by Fallbrook Air Service. Under the ground lease which was to expire in 2018 the improvements were to have become property of the county, so the equity payment compensates the county for the postponement of county ownership of the leasehold improvements.

The lease agreement also requires Fallbrook Air Service to invest at least $335,755 of capital improvements within the first five years of the new lease. That is based on a standard formula the county uses when granting new leases for an additional term, and since the lease parcel is completely built out the investments can include the installation of a solar power system, roof and wall insulation, motorized hangar doors, or other building upgrades and devices which improve the leasehold's energy efficiency.

The county will approve in writing any proposed improvements, and should the total value of the improvements be less than $335,755 at the end of the five-year period Fallbrook Air Service will pay the difference to the county.