The San Bernardino International Airport Authority (SBIAA)
Commission unanimously approved the final ground lease for the Eastgate Air
Cargo Facility with Hillwood Enterprises during a special meeting on Monday,
Dec. 30, one week after receiving clearance from the Federal Aviation
Administration (FAA).
Principal lease terms cited at end of article.
The six SBIAA members who voted to approve the development
are City of San Bernardino Mayor and SBIAA President John Valdivia, Loma Linda
Councilman Obvidiu Popescu, Highland Mayor Pro Tem Penny Lilburn,
County Supervisor Dawn Rowe, Colton City Councilman Jack Woods, and San
Bernardino Councilman Theodore Sanchez.
“The Eastgate logistics facility will help give our airport
its much needed rebirth. Not only does it have a great economic benefit for our
airport, but it also provides great benefits for the residents of San
Bernardino,” said Mayor Valdivia. “I hope to inspire our local residents to
take advantage of this great opportunity and apply for the jobs that will be
created. This development will provide a great renaissance for our economy and
help us move towards a better, more prosperous future in San Bernardino.”
The Inland Empire Economic Partnership
(IEEP), an organization focused on economic development in the region, supports
AllianceCalifornia efforts. IEEP President and CEO Paul Granillo noted, “The
logistics industry has fueled the Inland Empire’s spectacular recovery by
generating an estimated 84,000 new jobs – that’s nearly one out of every four
new jobs – over the past 10 years. Eastgate will continue to grow the region’s
economy in air cargo, so we can work closer to home and create good jobs for
workers of all skill and education levels.”
The development has been met with resistance from local
organizations such as the Center for Community Action and Partnership (CCAEJ)
and Inland Congregations United for Change (ICUC) who would like to see a
Community Benefits Agreement to mitigate environmental and employment impacts.
“We’re not convinced by Hillwood and the SBIAA’s claims that
this project will bring good-paying jobs, nor are we convinced of the FAA’s
claims that Eastgate will not have severe air quality impacts on our
communities,” remarked Ben Reynoso, Economic Justice Organizer for ICUC. “The
approved ground lease fails to provide sufficient information that we trust
will benefit our community. The lack of transparency throughout this entire
approval process has left us extremely doubtful about any job guarantees at
all.”
Located at SBD International Airport, the project is part of
the Airport’s master plan (AllianceCalifornia) to revitalize the former Norton
Air Force Base (NAFB).
The Commission’s decision concludes a multi-year
environmental and community review process, which included input from the FAA,
the South Coast Air Quality Management District, and many other resource
agencies and community participants. SBIAA Commissioners are elected officials
from the County of San Bernardino, and cities of: San Bernardino, Colton, Loma
Linda and Highland. Since base closure, they have worked to help ensure that
the needs of the surrounding communities are addressed.
It is still unclear who the new tenant at the facility will
be. Rumors are that it may be Amazon, but there is no confirmation.
“A gag order making the public unaware who the ultimate
tenant is for this project is extreme and wrongheaded for a government agency
supposedly serving the people,” says Adrian Martinez of Earthjustice. “The San Bernardino International Airport
Authority clearly does not care about meaningful public input and overall
transparency by holding such a consequential meeting for such a massive project
at an inconvenient time during the holidays with marginal notice.”
According to a release issued by the SBD International
Airport, this ground lease development with Hillwood Enterprises, L.P is 100%
privately funded and includes approximately 100 acres of land. 658,500 square
feet for the cargo sortation building, two 25,000 square foot ground support
buildings and 41 acres of structured parking and gate positions. Initial
monthly lease revenues from the ground lease are estimated to bring $2,587,804
annually and a 2.69% annual step increase.
“Since 2002, AllianceCalifornia has created
over 12,645 permanent jobs, surpassing the 10,000 jobs that were lost when
Norton Air Force Base had to close its doors,” said SBD International Airport’s
Executive Director Michael Burrows. “Almost 20 years in the making, this
Eastgate project is an incredible chapter in our public-private partnership
with Hillwood. On aeronautically-restricted property, this was one of the more
challenging yet truly vital elements of our multi-year revitalization efforts.
It is a major step towards innovating a green, sustainable air cargo complex
that flies and drives our economy without the use of public subsidies.”
The project
would require Hillwood to construct two new bridge crossings onto 3rd
Street, on the west and east portions of the project site, including signal and
traffic lane improvements. Proposed air operations include 12 daily flights
initially, increasing up to 26 flights at full build-out.
“The proposed lease gives Hillwood the right to use our airport
runways, taxiways, ramps, public highways, and streets and bring airplane and
truck pollution for decades to come without benefiting our community,”
expressed Tammy Viescas, San Bernardino
resident. “We are not against development — we are for development that
guarantees benefits for our community.”
Principal
lease terms are as follows:
- Premises: 97.4 acres of land.
- Initial Payment: 24 months at $112,000 per month, pre-paid and non-refundable.
- Monthly rent: $215,650.33.
- Initial lease term of thirty-five years (35) years with 2.69% annual step increases through Year 20.
- Two (2) five-year; and One (1) four-year options to extend the lease.
- Fair Market Value adjustments at Years 21, 26, 31, 36, 41, and 46.
- Hillwood to construct all improvements at its sole cost and expense, including applicable permit and entitlement fees.
- Triple-Net lease; Hillwood to pay all maintenance, taxes, utilities, and insurance costs throughout initial term and any option terms.
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