ONTARIO >> Enormous interest in 147 acres east of Ontario International Airport has commissioners asking themselves one question: Should the Ontario International Airport Authority sell or develop and lease the property itself?
“What is the best for airport operations?” Commissioner and San Bernardino County Supervisor Curt Hagman asked. “Yes, we could use the capital influx right now, but in the long term, we want to bring the landing fees down and operational costs for airlines as minimal as possible.”
In turn, lower landing fees and operational costs could attract more flights and new airlines to the airport.
The discussion arose Tuesday afternoon during the commissioners’ monthly meeting at the airport’s administrative offices.
CEO Kelly Fredericks asked commissioners for direction on how to handle developer inquiries about the 147-acre property, located east of Haven Avenue and commonly referred to as “the boot” because of its complex boundaries.
Development around the airport was one of the opportunities Fredericks eyed when first hired before the airport changed hands. Its previous owners, Los Angeles World Airports, handed ONT over in November after a long process.
“As part of our due diligence, we took over ownership of the airport and we were evaluating all our developable pieces of property. This was identified as non-aeronautical use,” Fredericks told the three commissioners in attendance.
Staff learned that LAWA purchased the property without Federal Aviation Administration grant funds, so there’s no encumbrances — or reimbursement associated with grant funds, he said.
Regardless of the direction by the commission, the authority would have to receive FAA approval, and any type of financial transaction would require fair market value, Fredericks said.
Commissioner Lucy Dunn, president and CEO of the Orange County Business Council, said she was concerned the option be compatible with the airport’s future master plan — under development — and with the surroundings.
It was premature, Dunn said, to make a decision based solely on a map outlining the property.
“I’m looking for you as the experts to come to us with making sure that there’s connectivity here,” she told Fredericks.
Hagman, on the other hand, would like for the OIAA’s air service division to research the options. He envisioned warehouse space that could be used by shipping companies. These companies in turn would use ONT to deliver their goods to the warehouses, Hagman said.
“Are we trying to sell off land to supplement our air business or are we trying to supplement just cash in our pocket, or are we trying to do both?” he asked commissioners.
Alan Wapner, president of the OIAA, suggested the authority conduct an auction. Not only would it be expedient, he said, once the offers come in, the commission can determine the best model.
His biggest concern with the other suggestions: timing.
“The market is a very hot market right now, and I really don’t want to take the chance in missing the cycle — not that we’re going to miss in the next two to three months,” Wapner said. “I’m hearing the master plan will take 18 to 24 months, and we could very well miss the cycle in 24 months.”
Wapner tried to reassure commissioners that by going the auction route doesn’t mean they have to accept any of the offers.
“We need to see what the market is offering,” he said. “If we don’t like it, then we can reject them. It’ll at least give us that option to see what’s available in the market.”
Fredericks reminded commissioners there are limitations to the types of facilities that can be permitted. Pursuant to the settlement agreement with LAWA, Fredericks said, those funds must be used to pay off the $70 million debt.
The commission ultimately directed Fredericks to bring back a staff report with options and outlining the benefits.
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