County approves Murray Investment Company lease at Fallbrook Community Airpark

In June 2002, the San Diego County Board of Supervisors approved a 30-year lease with Fallbrook Flyers, LLC, for 0.976 acres at Fallbrook Community Airpark. Fallbrook Flyers developed aircraft storage hangars and leased them to airport users.

In March 2015, Fallbrook Flyers, LLC, assigned its leasehold interest to Murray Investment Company, LLC, and on Oct. 14, 2015, the San Diego County Board of Supervisors approved a revised lease with Murray Investment Company.

The supervisors' 4-0 vote, with traffic preventing Ron Roberts from arriving at the Board of Supervisors chambers in time to be part of that action, authorized a new 30-year lease with Murray Investment Company which will begin Nov. 1 and terminate on Oct. 31, 2045.

"Aviation business is good news for our economy, and I'm pleased that we're keeping our tenants happy in Fallbrook," said Supervisor Bill Horn. "The scheduled airpark improvements are a welcome boost as well."

The 30-year lease with Fallbrook Flyers, LLC, began on July 1, 2002, and was scheduled to terminate on June 30, 2032. After Murray Investment Company took over the leasehold, Murray and County Airports staff negotiated a new lease which extended the lease period.

"This is an opportunity to allow Mr. Murray some assurances of his future at the airport," said County Airports project manager for airport real estate Lee Ann Lardy.

A long-term lease includes rent adjustments. Fallbrook Flyers, LLC, was paying $406 per month. The county and Murray Investment Company negotiated an initial monthly base rent of $415 which will be subject to annual cost of living adjustments and periodic rental rate renegotiations. The first negotiated adjustment will take effect on Nov. 1, 2017, and the rent will be renegotiated every five years after that. The renegotiation schedule will match the schedule for most other aviation leases at Fallbrook Community Airpark.

Standard ground leases revert improvements to the county after the lease ends. Because the new lease postpones county ownership of the Fallbrook Flyers improvements from 2032 to 2045, 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.

Murray Investment Company will be required to invest at least $65,000 into capital improvements at the leasehold within the first three years of the new lease. Because the leasehold has already been built out, the investment will provide upgrades which will improve the leasehold's safety, security, and efficiency. Possible improvements include roof and wall insulation, improved lighting efficiency, security cameras, and a new solar energy system.

"That will benefit the airport users," Lardy said.

The county's written permission will be required prior to all improvements.