Development of Former Air National Guard Site Is Postponed

FEBRUARY 10, 2013

Private development plans for the former Air National Guard site at the airport have been scrapped for the time being. The City retook posssession of the 24-acre site, adjacent to West Winton Ave., in 2012 after the lease with the National Guard expired and the Congress approved the transfer in May 2012. The City signed an agreement with Hayward Airport Development LLC, but the development plan appears to have collapsed since one partner withdrew.

The HAD partnership was formed by three partners to develop a portion of the vacated site in phase I of a long-term, five-phase plan to construct both aviation-related and nonaviation commercial facilities. One of the partners, SP Aviation, relocated its business to Oakland Airport in August 2012. As reported at the Jan. 24 meeting of the City Council Airport Committee, the City was informed by the HAD partnership in November 2012 that the project "was not financially feasible at the present time" and HAD was withdrawing its proposal for construction of hangars in phases I - IV.

Before the former National Guard site can be redeveloped, the soil at the site must be cleaned to meet environmentally safety standards. That work is expected to begin this summer. In light of this and the general condition of the economy, City staff has recommended that issuance of a new request for proposal from developers be deferred until the environmental clean-up is well under way and staff is able to reassess the market for investment in the type of development envisioned for the site.

The history and details of proposed development of the site are covered in documents attached to the agenda of the January 24 meeting of the City Council Airport Committee.