REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
BRETT J. GODOWN, Director, Department of Airports
SUBJECT
Title
Amendment to Lease Agreement and County Consent to Assignment with S & R Aviation Services, Inc., dba Aero Trader, and California Aerofab, LLC at Chino Airport
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 1 to Lease Agreement No. 18-299 is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 (Class 1 - Existing Facilities).
2. Approve Amendment No. 1 to Lease Agreement No. 18-299 with S & R Aviation Services, Inc., dba Aero Trader, and California Aerofab, LLC, as Assignee, concerning hangars A-495, A-497 (Assessor’s Parcel Number 1026-081-15-0000), A-555, and A-560 (Assessor’s Parcel Number 1026-081-14-0000) at Chino Airport, to:
a. Accept S & R Aviation Services, Inc., dba Aero Trader, and California Aerofab, LLC 's exercise of its five-year option, extending the term from July 1, 2023 through June 30, 2028.
b. Establish the minimum monthly rental schedule for the five-year extended term, increasing the Lease Agreement amount by $1,111,104, from $998,376 to a new total amount of $2,109,480.
c. Consent to the assignment by S & R Aviation Services, Inc., dba Aero Trader, of its right, title, and interest in and to Lease Agreement No. 18-299 to California Aerofab, LLC, with California Aerofab, LLC assuming the previous tenant’s obligations under the Lease.
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.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Amendment No. 1 (Amendment) to Lease Agreement No. 18-299 (Lease) will continue Lease revenues under the amended rental schedule and authorize collection of the required $1,500 consent review fee. Estimated Lease revenue for the extended term, from July 1, 2023 through June 30, 2028, is $1,111,104, of which $647,568 has already been received. The remaining estimated Lease revenue for the final two years of the extended term, from July 1, 2026 through June 30, 2028, is $463,536. Adequate appropriation and revenue are included in the Department of Airports' 2026-27 budget and will be included in the future year budget.
|
Year |
Lease Revenue |
Consent Review Fee |
|
July 1, 2026 - June 30, 2027 |
$229,308 |
$1,500 |
|
July 1, 2027 - June 30, 2028 |
$234,228 |
$0 |
|
Total |
$463,536 |
$1,500 |
BACKGROUND INFORMATION
On June 12, 2018, (Item No. 74) the Board of Supervisors approved Lease Agreement No. 18-299 with S & R Aviation Services, Inc., dba Aero Trader (Aero Trader), for the lease of hangars A-495, A-497, A-555, and A-560, consisting of approximately 40,000 square feet of hangar space, 3,600 square feet of office space, 1,920 square feet of storage space, together with associated yard and ramp areas located at Chino Airport. The original Lease term commenced July 1, 2018, with an initial term scheduled to expire on June 30, 2023.
The Lease provided Aero Trader with one five-year option to extend the term, exercisable by written notice received between nine and 12 months before expiration of the initial term. On June 14, 2023, Aero Trader submitted written notice exercising the option. Although the notice was not provided within the required notice period, the proposed Amendment waives the nine-month advance-notice requirement, accepts the notice as a valid exercise of the option, and confirms that the Lease term extends through June 30, 2028. No additional extension options will remain.
During the period from July 1, 2023 through June 30, 2026, Aero Trader remained in possession of the leased premises, and the County billed and collected rent in accordance with the rental schedule for the extended term. Rent for those three lease years totaled $647,568. The remaining $463,536 represents the estimated Lease revenue for the final two years of the extended term, from July 1, 2026 through June 30, 2028. Together, these amounts comprise the $1,111,104 increase to the contract amount attributable to the five-year extension.
Aero Trader has requested County approval to assign all of its rights, title, and interest under the Lease to California Aerofab, LLC (Aerofab). Pursuant to Paragraph 13 of the Lease, County approval is required before an assignment may occur. The proposed Amendment provides the County's consent to the assignment, subject to Aerofab assuming all obligations under the Lease and complying with the conditions outlined in the Amendment.
The requested assignment prompted a review of the Lease record and provides an opportunity to formally memorialize the previously exercised and acknowledged Lease extension. The Amendment does not create a new lease term retroactively; rather, it waives the advance-notice timing requirement, confirms the extended term under which the parties have operated since July 1, 2023, establishes the applicable minimum monthly rental schedule, and creates a clear record for ongoing lease administration. The Amendment also updates the notices provision, facilitates the assignment, supports the continued operation of an aviation-related business at Chino Airport, and maintains compliance with the Lease and County policy.
The project to approve the Lease was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Class 1 Existing Facilities because the Lease involves the continued use of existing facilities with negligible or no expansion of use. Accordingly, no further action is required under CEQA.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on August 26, 2026; Airports (Brett J. Godown, Director, and Maureen Snelgrove, Assistant Director, 387-8812) on August 26, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 26, 2026; and County Finance and Administration (Eduardo Mora, 387-4376, Administrative Analyst) on September 2, 2026.
(AR: 501-7579)