"Oceanside to negotiate with private firm to run airport"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Friday, May 16, 2008

City to negotiate with private firm to run airport 
Council OKs talks after hearing from 2 bidders
By Lola Sherman 
The San Diego (CA) Union-Tribune


OCEANSIDE - City officials are one step closer to contracting with a private
operator to run Oceanside Municipal Airport, possibly for the next half
century. 

In a 4-1 vote Wednesday night, the City Council decided to negotiate with
Airport Property Ventures of Los Angeles, a company formed a year ago by a
partnership that includes two former executive directors of the agency that
runs Los Angeles International Airport.
 
The company was one of two bidders that made presentations Wednesday. 

The single-runway Oceanside airport in the San Luis Rey River valley long
has been a contentious issue with the council, which at one time considered
turning it into a shopping center or housing to make money from the 50
acres. 

The Federal Aviation Administration nixed that idea last year, leading the
council to seek a private operator to run the 45-year-old airport. 

City Manager Peter Weiss said negotiating a contract with Airport Property
Ventures will take about 60 days. The contract will need council approval. 

Airport Property Ventures proposed a 50-year lease and promised to spend $21
million to improve the airport and to pay more than $11 million in rent to
the city in the next 25 years. 

The fact that the company is only a year old and operates no airports now
concerned council members. 

The company's three principals, however, said they have cumulative years of
experience at major airports in the country. 

John Driscoll was executive director of Los Angeles World Airports from 1992
to 1999. The public agency operates Los Angeles International, Ontario
International, Palmdale Regional and Van Nuys General Aviation airports. 

Lydia Kennard was executive director of the agency from 1999 to 2003 and
from 2005 to 2007. The third principal, Robert Clifford, is a commercial
real estate broker specializing in airport properties. 

Santa Monica-based American Airport Corp., which operates five
general-aviation airports in Los Angeles County, also bid for the job. 

That company offered a smaller financial package: a $6 million investment
for a 40-year lease and about $4 million in total revenue to the city over
25 years. 

Both companies proposed building about 100 hangars and 50 tie-downs and a
new terminal building, as well as paying off a $744,500 state loan and
$480,000 the airport owes the city general fund. 

After the meeting, Councilman Jerry Kern, who cast the dissenting vote, said
he thought American Airport was the better choice. 

Kern said Airport Property Ventures officials said they had a promise of
loans to pay for airport improvements, while American Airport said it has
cash in hand to do the job. 

Airport Property Ventures also would have to gear up to take over the
airport, Kern said, whereas American Airport has a manager ready to step in
right away. 

But Kern said the most important thing is that either company provided the
airport with a long-term future. 

Representatives of the Oceanside Airport Association, a pro-airport group,
and Citizens for a Better Oceanside, successor to a group that sued the city
over its opposition to the airport, said they could work with either
company. 

"It's a great day," said Ben Meyers, president of the airport association . 

Ron Stewart, president of the citizens group, said 3,000 people live in the
airport area and asked that their safety and noise concerns be considered.

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http://www.californiaaviation.org/dcfp/dcboard.php

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