DATE: November 19, 2024
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute a Lease Agreement with Montecito Development LLC, for Property Located at the Hayward Executive Airport
End
RECOMMENDATION
Recommendation
That Council adopts the attached Resolution (Attachment II) authorizing the City Manager to negotiate and execute a lease agreement with Montecito Development LLC, for the development of Airport property at the former California Air National Guard (CANG) site.
End
SUMMARY
The CANG site at the Hayward Executive Airport (Airport) has been vacant since 1980, and it was officially released to the City by the United States Government in 2012. For over ten years, the City has marketed the parcel for aeronautical use, but interest has been minimal due to the Pandemic and current market conditions that favor non-aeronautical use.
Over time, staff has received inquiries about non-aeronautical use of the property, with Montecito Development previously expressing strong interest for a "flex" type of development that included mainly warehouse space, and some retail and office, as well as space for a museum shell building honoring the Tuskegee Airmen. Council declined to consider the proposed development as it did not meet the City's basic requirements and requested that the property be re-evaluated for the best and highest use. Accordingly, Montecito pivoted away from a warehouse to advanced manufacturing. The City subsequently entered into an Exclusive Negotiating Agreement (ENA) with Montecito Development (Attachment III). The outcome of discussions was a Term Sheet (Attachment IV) outlining basic deal points in a potential lease agreement.
The developer revised the conceptual plans to better align them with the City's vision for the property and requested to enter into a lease agreement with the following deal points:
* 50...
Click here for full text