TO: Honorable Mayor and Members of the City Council
FROM: Scott Miller, Public Works Director and Airport Manager
SUBJECT:
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Approve the Minor Amendment #2 to PJ Helicopters 2017-2067 Lease Agreement
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RECOMMENDED COUNCIL ACTION:
recommendation
Approve the Minor Amendment #2 to PJ Helicopters 2017-2067 Lease Agreement and authorize the Mayor and City Attorney to sign Airport Lease Agreement Second Amendment.
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SUMMARY:
PJ Helicopters, Inc. (PJ) currently leases approximately 12.7 acres of property from the City at 903 Langley Way in the southeast portion of the City’s airport property. The proposed Amendment #2 to the Airport Lease Agreement would modify the existing approved lease area boundary to 15.83 acres total, to incorporate minor development improvements for more efficient use of the site and improve expansion capabilities of the aviation business. The proposed Amendment #2 merely adjusts minor sections of the boundary to encompass those improvements. No other modification to the Lease Agreement is proposed.
PREVIOUS COUNCIL ACTION:
At the March 7th, 2023, City Council meeting, Council approved a Minor Amendment to 50-year lease agreement with the last expansion project as defined in Exhibit A & A-1.
At the May 16th, 2017, City Council meeting, Council approved a 50-year lease agreement as part of an expansion project.
In May of 2001, the City Council approved a previous 50-year ground lease for a 5-acre section of airport property at the future (at that time) Langley Way.
DISCUSSION:
PJ Helicopters has been a long-term tenant at the Red Bluff Municipal Airport. Over the years they have continued to expand their fixed base operations and employ many of the city’s residents. Their main campus on Langley Way is located entirely within the 600-acre parcel of airport property. The facility and lease area were established as early as 2001 and is currently shown within the red and blue lines of the attached exhibit per the LINE LEGEND per Exhibit “A”- Property Description and Site Map, LEASED AREA EXHIBIT, sheet SK1, dated May 12th, 2026. More detail can be found in the previous legal description and site map Exhibit A & A-1 per the March 7th, 2023, Minor Amendment. Currently, PJ’s is in the approval process through the City and FAA for an addition to one of their aviation buildings. While the addition is entirely within the existing lease boundary, the Minor Amendment #2 will improve access around the structure along with other operational benefits. Due to the geographical location of PJ’s facility and distance from the runway and taxiways, there will be no impact to the other airport users with the expansion of the lease area as part of the Minor Amendment #2.
The proposed revised lease area legal description and site map exhibit were reviewed by the Airport Commission during their April 8th, 2026, meeting. The Commission unanimously approved Recommending the Amendment for Council approval. The draft copy of the minutes (Agenda Item #4) is attached.
CITY FISCAL IMPACT:
No additional impact to the General Fund.
ATTACHMENTS:
1. Draft PJ Helicopters Amendment #2 Lease Agreement (2017-2067)
2. April 8, 2026, Airport Commission Minutes