REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
January 27, 2026
FROM
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Amendment to Lease Agreement and Mutual Release of Claims with San Bernardino International Airport Authority incorporating Settlement Terms for Leasing Land in San Bernardino
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District:
1. Find that approval of Amendment No. 14 to Lease Agreement No. 95-365 with San Bernardino International Airport Authority for land, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 14 to Lease Agreement No. 95-365 with San Bernardino International Airport Authority to:
a. Extend the term of Lease Agreement No. 95-365 for one year for the period of February 1, 2026 through January 31, 2027, following a permitted holdover period from September 1, 2022 through January 31, 2026.
b. Approve settlement-related lease financial terms, including a credit on back rent in the amount of $76,804, a Mutual Release of Claims regarding any Lead Based Paint Claims and Landlord Rent Claims, and the designation of the future monthly land rent amount.
c. Revise the Lease to exclude the approximately 29,978 square foot building and update the premises to consist of approximately 172,062 square feet of land located at 2824 East W Street in San Bernardino (Assessor’s Parcel Number 0136-371-41-0000) for the San Bernardino County Fire Protection District.
d. Adjust the rental rate schedule and update standard lease agreement language.
e. Increase the total lease amount by $660,719, from $2,486,310 to a new total amount of $3,147,029.
3. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total rental cost of Amendment No. 14 (Amendment) to Lease Agreement No. 95-365 (Lease) is $660,719. Lease payments and other costs associated with this Lease, including maintenance and utility expenses, will be paid directly from the San Bernardino County Fire Protection District (SBCFPD) budget (1064332410). Sufficient appropriation is included in the SBCFPD 2025-26 budget and will be included in future recommended budgets. Annual Lease costs are as follows:
|
Year |
Annual Lease Cost |
Estimate of Other Costs Associated With This Lease |
|
*Settlement |
($76,804) |
|
|
**September 1, 2022 - January 31, 2026 |
$500,077 |
$256,250 |
|
February 1, 2026 - January 31, 2027 |
$237,446 |
$80,340 |
|
Total Cost |
$660,719 |
$336,590 |
*Settlement Credit to SBCFPD to offset Building Rent Arrears
**Permitted holdover period
BACKGROUND INFORMATION
On May 23, 1995 (Item No. 31), the Board of Directors (Board) approved Lease Agreement No. 95-365 with the San Bernardino International Airport Authority (SBIAA) for approximately 29,978 square feet of hangar storage space (Hangar 302) located at 2824 East W Street, San Bernardino. The original Lease term was July 1, 1995 through April 30, 2005, with two three-year options to extend. Over the 31 years since the Lease was originally approved, the Board of Supervisors and, subsequently, the Board of Directors of SBCFPD have collectively approved 13 amendments to modify rental rates, add approximately 3.95 acres of land, exercise and add options to extend the term of the Lease, and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
January 30, 1996 |
33 |
|
2 |
June 23, 1998 |
14 |
|
3 |
September 13, 2005 |
37 |
|
4 |
April 22, 2008 |
43 |
|
5 |
January 12, 2010 |
77 |
|
6 |
January 14, 2014 |
51 |
|
7 |
November 18, 2014 |
58 |
|
8 |
April 19, 2016 |
83 |
|
9 |
May 23, 2017 |
143 |
|
10 |
May 22, 2018 |
145 |
|
11 |
May 21, 2019 |
129 |
|
12 |
April 21, 2020 |
77 |
|
13 |
August 24, 2021 |
56 |
SBCFPD currently occupies approximately 172,062 square feet of land located at 2824 East W Street in San Bernardino (Premises) that has been in a month-to-month holdover status since September 1, 2022. Following expiration of the fixed-term lease on August 31, 2022, SBCFPD vacated and surrendered the approximately 29,978 square foot warehouse building portion of the Premises due to concerns related to lead-based paint but continued to occupy and utilize the demised land portion for operational needs. Rent payments ceased after August 2022. The parties dispute whether rent is owed for the warehouse building from September 1, 2022.
Following settlement discussions between SBCFPD and SBIAA, the parties agreed to a framework to resolve the dispute and allow operations to continue. The Amendment and settlement terms provide for recognition of back rent attributable only to the land area, a holdover of the land lease at the existing rate through the end of January 2026, the exclusion of holdover rent for the warehouse building reflected as a credit to the rent arrears, and negotiation of a new land lease term and rental rate effective February 1, 2026. This approach avoids further dispute, establishes interim certainty, and allows time for evaluation of a longer-term site solution.
During settlement negotiations, both parties agreed that a short-term land rental rate of $0.115 per square foot per month was appropriate. RESD determined this rate is in line with similar unimproved ground leases in the surrounding area and reflects current market conditions.
The Amendment establishes a one-year lease term for the land area only utilized by SBCFPD, commencing February 1, 2026 through January 31, 2027, at a rental rate of $0.115 per square foot per month. The Amendment incorporates the negotiated settlement terms, including agreed-upon credits and back-rent treatment, and provides mutual releases of claims and continuity of operations while the County and SBIAA work collaboratively to identify and evaluate an alternate site for SBCFPD operations.
RESD staff has reviewed the recommended action pursuant to the California Environmental Quality Act Guidelines (CEQA) and determined it is categorically exempt under CEQA Guidelines Section 15301 (Existing Facilities).
|
Summary of Lease Terms |
|
|
Lessor: |
San Bernardino International Airport Authority Mike Burrows, Chief Executive Officer |
|
|
|
|
Location: |
2824 East W Street, San Bernardino (APN 0136-371-41-0000) |
|
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Size: |
172,062 square feet of land |
|
|
|
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Term: |
February 1, 2026 through January 31, 2027 |
|
|
|
|
Options: |
None |
|
|
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Rent: |
Cost per square foot per month: $0.115* modified gross |
|
|
Monthly: $19,787 (rounded) |
|
|
Annual: $237,446 (rounded) |
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*Mid-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
None |
|
|
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Improvement Costs: |
None |
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Custodial: |
None |
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Maintenance: |
Provided by SBCFPD |
|
|
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Utilities: |
Provided by SBCFPD |
|
|
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD |
|
|
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Holdover: |
Upon the end of the term, if permitted by Lessor, the Lease shall continue on a month-to-month with the same terms and conditions, including the rent |
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Right to Terminate: |
The Lease terminates on January 31, 2027 |
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Parking: |
Sufficient for SBCFPD needs |
PROCUREMENT
The Lease is exempt from the provisions of County Policy 12-02 - Leasing Privately Owned Real Property for County Use because it is owned by a governmental agency.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II and Rick Luczak, Deputies County Counsels, 387-5455) on January 21, 2026; Fire (Bertral Washington, Deputy Chief, 387-5779) on January 7, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on January 7, 2026; and County Finance and Administration (Ivan Ramirez, 387-4020, and Eduardo Mora, 387-4376, Administrative Analysts) on January 9, 2026.
(BR: 531-2674)