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l <br /> JOHN F. CHEADLE <br /> _ November 9, X988 <br /> page 2 <br /> _.... ditonal:;ly, they have requested a soWcaled " 3ght of <br /> first <br /> refsn the same acreage. Said riht to become effec- <br /> ive at thi ioption has expired. They again will not, pay <br /> any coriside:ration t�erafor. It is our belief. that no. one: w 11 <br /> fake an offer. on real property that is subject to a S:panos rfh#r:. <br /> first refuse .. s a consequence they will of ect ve .y tie ap <br /> the property not only for the option period, .but :for the �rig.xt of. <br /> f st refusal perit d as well. A11, with no cons dersf.ion what- <br /> soever being paid to the County. <br /> 3. Addi ionally iSpanos wants the rental ir,crea.sea by Elie: <br /> -CPI increase r-ecognixed during a. five year 1p.eriod. What _this. i.n <br /> { effect does is preclude any increase for the first five years;, <br /> even though the CPI may have increased in each. off those five <br /> years. As an example: <br /> The rend will be a. f ie int for: tie <br /> first five year period. Then the rent for the second five year <br /> +eriod shall be predicated ippon :the CP1 increase .realized froom <br /> .the first to the fifth year; however, not to exceed five percent. <br /> :.:.: We will lose revenue by not increasing the rental to an amount <br /> equal to the C 1 increase in each year of the term. <br /> Hypothetically, if the rental for the first fiveyears were <br /> $1,000 per :month, it would remain at 1, 000 per Month. For the <br /> first five ;years there would b no compounding of the CPI, whichshould be standard in any lease. <br /> 4. They will ka replacing fuel` tank s) . pancas has told us <br /> that the tanks will cost $135, 000. They have asked that :we <br /> reduce the per gallon fuel flowage tee from five cents per gallon <br /> to four cents per gallon. This represents a reduction cif one <br /> cent. This reduction will_-stay in place until such time as the <br /> cane cent- reductio: per gallon equals a total of $135 , 000, plug <br /> .-interest a the rate of one percent over. prime per year can the <br /> declining balance. What this in effect does is have the :bounty <br /> : buy th,:exr ,.tanks for then. They would have the right .to: a>ssign o <br /> sell .the fuel tanks at any time with nothing back. to the County. <br /> This is .reapy sn untenable situation as' will be further <br /> e cplained 3 el0w o <br /> S. T ey request that the fuel flowage fee be pegged at >four <br /> cents per gallon, as above explained in paragraph..number im ,e <br /> l ately preceding. This is the least amount. .. . b several <br /> airports with the exception of the City of San Carlos A'ftched <br /> hereto is a survey covering several airports.. l.t s.hxul,d also be <br /> g e`, under their arrangement, would <br /> noted that the .fuel flaws e fe. <br /> xe <br />