Board clears lease assignment at Rocky Ford Road; proposed rent jumps from $6,000 to $36,685

The Board authorized the County Manager April 6 to execute an Amendment, Assignment and Assumption of Lease that would transfer Blue Ridge Biofuels' lease at 3961 Rocky Ford Road to Lifecycle Renewables, Inc., contingent on the asset sale closing.

County staff described the existing lease (originally entered in October 2014) and said Blue Ridge Biofuels notified the county of its intent to sell assets to Lifecycle Renewables. The proposed amendment raises the annual base rent from $6,000 to $36,685, with future annual adjustments based on the Consumer Price Index. The assignment and amendment included standard indemnity, insurance and nuisance provisions, and Exhibit C listed hazardous-material inventories and quantities; staff said certain materials on the hazardous-material list would be removed within 90 days of closing.

County staff recommended approving the transaction to preserve revenue and continuity of operations at the site; staff warned that declining to approve the assignment could result in lease termination and loss of associated revenue. The assignment and lease amendment were included in the consent packet; the Board approved the consent agenda motion unanimously.

The lease documents in the packet specify the assignment becomes effective upon sale closing and require insurance and other operational controls. Staff will return executed documents to the record and proceed with post-closing obligations if the sale closes.