(1) Negotiate and execute a ground lease and operating agreement with Signature Flight Support for the construction and operation of a Fixed Based Operation (FBO) on approximately 29 acres at the west side of the Airport for a fifty (50) year term from the date of execution by the City and with interim construction ground rent commencing upon the date of execution by the City, in the amount of $1,319,084 until the earlier of the twenty-fifth (25th) month from the date of execution by the City or the date a certificate of occupancy is issued for the use and occupancy of the leasehold improvements, and subsequent annual ground rent in the amount of $2,638,168, subject to annual Consumer Price Index increases, and subject to increase by appraisal every five (5) years during the term of the lease;

(2) Negotiate and execute amendments to the ground lease and operating agreement at any time during the first five (5) years of the term to modify the lease boundaries of the site, and to expand or contract the lease size as necessary to maximize the use of available land on the west side of the Airport for any land included in the scope of the RFP; and

(3) Negotiate and execute a Non-Disturbance, Consent, Estoppel and Subordination Agreement with Signature Flight Support Corporation and BCH San José LLC to provide for the continued use and occupancy of approximately nineteen (19) acres of the leasehold by BCH San José LLC pursuant to the terms of a new ground lease and operating agreement between the City and BCH San José LLC on the same terms and conditions as the ground lease and operating agreement with Signature Flight Support Corporation, in the event that the lease with Signature is rejected in bankruptcy, terminated or otherwise cancelled at any time prior to the end of its fifty (50) year term. CEQA: Airport Master Plan EIR, Resolution Nos. 67380 and 71451, with Addendum, File No. PP13-022. (Airport) TO BE HEARD IMMEDIATELY FOLLOWING THE CONSENT CALENDAR