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Agenda Packet, 04-28-2022

Council Airport Committee
April 28, 2022

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Agenda Packet, 04-28-2022
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April 28, 2022
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Council Airport Committee
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Thursday, April 28, 2022
5:30 PM

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Remote Participation
Council Airport Committee
Agenda

April 28, 2022Council Airport Committee Agenda
COVID-19 Notice: Consistent with Assembly Bill 361/Gov Code 54953(e), the Council Airport Committee (CAC) meeting includes teleconference participation by all CAC members and the public.

How to submit written Public Comment:

Send an email to [email protected] by 1:00 p.m. the day of the meeting.

Please identify the Agenda Item Number in the subject line of your email. Emails will be compiled into one file, distributed to the Committee Members and City staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda. Written comments received after 1:00 p.m. that address an item on the agenda will still be included as part of the record.

How to provide live Public Comments during the meeting:

Click this link below to join the webinar:
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How to watch this meeting from home:
https://www.youtube.com/user/cityofhayward
A Guide to attend virtual meetings is provided at this link: https://bit.ly/3jmaUxa CALL TO ORDER Pledge of Allegiance: Council Member Zermeño

ROLL CALL

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April 28, 2022Council Airport Committee Agenda
PUBLIC COMMENTS:
(The Public Comment section provides an opportunity to
address the City Council Committee on items not listed on the agenda as well as items on the agenda. The Committee
welcomes your comments and requests that speakers present their remarks in a respectful manner, within established time limits, and focus on issues which directly affect the City or are within the jurisdiction of the City. As the Committee is prohibited by State law from discussing items not listed on the agenda, any comments on items not on the agenda will be taken under consideration without Committee discussion and may be referred to staff.)

APPROVAL OF MINUTES
Approval of Minutes of the Council Airport Committee (CAC) Meeting held on October 28, 2021
MIN 22-0491.

Attachments: Attachment I CAC Minutes for 10-28-2021

REPORTS/ACTION ITEMS
Potential Development of Former California Air National Guard Site
RPT 22-0392.

Attachments: Attachment I Staff Report
Attachment II CANG Site Map
Attachment III CANG Preliminary Site Plan
Attachment IV CANG Street-side Elevation
Assignment/Assumption of Bud Field LeaseACT 22-0413.

Attachments: Attachment I Staff Report
Attachment II Bud Field Aviation Inc Site Map
Assignment/Assumption of Aviation Training LeaseACT 22-0424.

Attachments: Attachment I Staff Report
Attachment II Aviation Training Site Map
Attachment III Savage Aero Business Operating Plan
Oral Presentation: Update on Reuse of Skywest PropertyRPT 22-0405.

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April 28, 2022Council Airport Committee Agenda
Update on Hangar Condition Assessment ProjectRPT 22-0416.

FUTURE AGENDA ITEMS
Review Updated 2022 Agenda Planning CalendarRPT 22-0427.

Attachments: Attachment I Staff Report

COMMITTEE MEMBER/STAFF ANNOUNCEMENTS AND REFERRALS

ADJOURNMENT
NEXT REGULAR MEETING - 9:30 A.M., FRIDAY, JUNE 24, 2022

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 22-049
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Approval of Minutes of the Council Airport Committee (CAC) Meeting held on October 28, 20211

RECOMMENDATION
That the Council Airport Committee reviews and approves the October 28, 2021 Committee Minutes.

SUMMARY
The October 28, 2021 Council Airport Committee meeting minutes are presented for the Committee’s review and approval.

ATTACHMENTS
Attachment I October 28, 2021 Council Airport Committee (CAC) Meeting Minutes CITY OF HAYWARD Printed on 4/25/2022Page 1 of 1
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DATE: April 28, 2022

TO: Council Airport Committee

FROM: Director of Public Works

SUBJECT Approval of Minutes of the Council Airport Committee (CAC) Meeting held on October 28, 2021.

CALL MEETING TO ORDER

Council Member (CM) Zermeño called the meeting to order at 5:32 p.m. with Mayor Halliday present. CM Salinas joined meeting during RPT 21-124 (Item #3) presentation.

City staff: Alex Ameri, Director of Public Works
Doug McNeeley, Airport Manager
Pamela Svrdlin, Airport Operations Supervisor
Todd Strojny, Airport Business Supervisor
Arturo Hurtado, Airport Operations Specialist
Amy Toste, Senior Secretary
Dave Hung, Senior Civil Engineer

Members of the public present:

Six people on the Zoom presentation.

PUBLIC COMMENTS

None.

REPORTS/ACTION ITEMS

1. Approval of Minutes for September 30, 2021

A motion was made by Mayor Halliday and seconded by Council Member Zermeño. The motion passed unanimously; minutes approved as submitted.

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2. Update on Fire Station 6 and Fire Training Center Project.

Senior Civil Engineer Dave Hung presented the report.

Mayor Halliday asked why the burn building will be a Victorian-style home instead of a tower.

Mr. Hung responded that there will be two types of burn buildings with two different types of fires for the firefighters to experience. The Victorian home will have non-standard hallways and narrow doors which are common in area buildings, and the fires will be Type A accelerant. The tower is for airport-related training, and the fires will be propane.

CM Zermeño asked if the height of the tower building would be an issue for aircraft operations. Airport Manager McNeeley answered it would not. A Form 7460 was completed and submitted to the FAA, and all building heights were approved prior to construction.

CM Zermeño asked if the steel beam from the 9-11 World Trade Center would be visible by the public. Mr. Hung replied that it will be seen when in the lobby area of the Apparatus Building (Building #2).

CM Zermeño asked if solar panels would be on any of the buildings. Mr. Hung answered that four of the buildings will have solar panels.

Public Comments

None.

3. Oral Presentation of the Update on Reuse of Skywest Property

Airport Manager McNeeley presented the report with a summary of recent public workshops and an updated site map.

Council Member Salinas and Mayor Halliday thanked the residents of the surrounding neighborhoods for their involvement and comments.

Mayor Halliday asked if FAA regulations would allow for a trail to run closer to the airport in an east to west direction. Director Ameri responded that a southern trail will have to be approved by FAA, but a northern trail (close to the San Lorenzo homes) is in the design.

Council Member Zermeño asked if the FAA Airport Safety Zone could be made smaller, so the business center area and the park be enlarged. Mr. Ameri answered that the FAA Airport Safety Zone is larger than the runway per regulations and the site map will be refined and adjusted as the project moves along.

CM Zermeño queried what would be included in an airport viewing area. Mr. McNeeley noted items such as benches, tables, aviation-related play areas for children, and a replica of the air traffic control tower. CM Salinas liked the view park idea as it makes the airport a destination.

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Public Comments

None.

4. Updated 2022 Agenda Planning Calendar

Mr. McNeeley presented the informational report for upcoming items.

The following items were added by the Committee for further action:

1. Update on Reuse of Skywest Property at every meeting

Public Comments

None.

Committee Member/Staff Announcements and Referrals

Mr. McNeeley announced that Airport Open House 2022 will be held the 3rd weekend of September.

CM Zermeño commended Director Ameri and his staff on the renovation of Hesperian Blvd.

The medians look nice, and he was happy to see that the olive trees were kept.

ADJOURNMENT

The meeting adjourned at 6:21 p.m.

Meeting Attendance
Present Present Excused Absent
10/28/21 to Date This to Date This to Date This
Meeting Calendar Year Calendar Year Calendar Year
Mark Salinas  4 0 1
Barbara Halliday  5 0 0
Francisco Zermeño  5 0 0

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-039
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Potential Development of Former California Air National Guard Site

RECOMMENDATION
That the Council Airport Committee (CAC) reviews this information and recommends Council direct staff to commence next steps regarding the proposed development of advanced manufacturing and life science uses at the California Air National Guard (CANG) site.

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 current market conditions that favor non-aeronautical use.

In the past several years, staff has received several inquiries about non-aeronautical use, including proposals by Montecito Development Company (Developer) that previously expressed interest in a “flex” type of development, which included retail, office, and warehouse space, as well as space for a museum honoring the Tuskegee Airmen. After Council requested that the property be re-evaluated for the highest and best use possible, the Developer’s plan pivoted away from a warehouse to life science and advanced manufacturing, with the museum for the Tuskegee Airmen and the space for community service organizations retained in the new plan. The net impact of this revised development proposal to the Airport is significant, with potential annual revenues from this development approaching $1 million. The City would also benefit from job creation, the generation of additional sales tax, and increased economic impact.

However, before the revised development proposal can proceed, the CANG parcel must be released for non-aeronautical use by the Federal Aviation Administration (FAA). Staff must submit a written request to the FAA for release, which is likely to take six to nine months. Staff is requesting that the CAC recommend Council direct staff to commence the next steps required to move forward with the revised development proposed by the Developer, including negotiating a lease agreement with the Developer, submitting a release request to the FAA, and supporting the Developer in pursuing land use entitlements and environmental clearance. The property will require a rezoning from Air Terminal-Airport Commercial (AT-AC) to Air Terminal-Commercial (AT-C).

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File #:RPT 22-039

ATTACHMENTS
Attachment I Staff Report
Attachment II CANG Site Map
Attachment III CANG Preliminary Site Plan
Attachment IV CANG Street-side Elevation
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DATE: April 28, 2022

TO: Council Airport Committee

FROM: Director of Public Works

SUBJECT: Potential Development of Former California Air National Guard Site

RECOMMENDATION

That the Council Airport Committee (CAC) reviews this information and recommends Council direct staff to commence next steps regarding the proposed development of advanced manufacturing and life science uses at the California Air National Guard (CANG) site.

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 current market conditions that favor non-aeronautical use.

In the past several years, staff has received several inquiries about non-aeronautical use, including proposals by Montecito Development Company (Developer) that previously expressed interest in a “flex” type of development, which included retail, office, and warehouse space, as well as space for a museum honoring the Tuskegee Airmen. After Council requested that the property be re-evaluated for the highest and best use possible, the Developer’s plan pivoted away from a warehouse to life science and advanced manufacturing, with the museum for the Tuskegee Airmen and the space for community service organizations retained in the new plan. The net impact of this revised development proposal to the Airport is significant, with potential annual revenues from this development approaching $1 million. The City would also benefit from job creation, the generation of additional sales tax, and increased economic impact.

However, before the revised development proposal can proceed, the CANG parcel must be released for non-aeronautical use by the Federal Aviation Administration (FAA). Staff must submit a written request to the FAA for release, which is likely to take six to nine months.

Staff is requesting that the CAC recommend Council direct staff to commence the next steps required to move forward with the revised development proposed by the Developer, including negotiating a lease agreement with the Developer, submitting a release request to

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the FAA, and supporting the Developer in pursuing land use entitlements and environmental clearance. The property will require a rezoning from Air Terminal-Airport Commercial (AT-AC) to Air Terminal-Commercial (AT-C).

BACKGROUND

The Airport and all its facilities were originally transferred from the United States Government to the City in 1947 in the form of a quitclaim deed. The City entered into an agreement with the U.S. Government in 1949 for continued use of approximately 27 acres of the Airport by the U.S. Air Force and the California Air National Guard (CANG). The CANG site was used by various military units until 1980 when approximately 24 acres was vacated and eventually returned to the City in September 2012. Three acres is currently leased by the CANG.

FAA prefers that owners of public-use airports use airport property for aeronautical purposes, and, as a result, the City has actively searched for aeronautical tenants for the CANG site. The City released a Requests for Proposals (RFP) in 2001 and 2007, and several responses were received, including one response for the development of corporate aircraft hangars that was determined to have merit. However, negotiations were unsuccessful.

The City released another RFP in 2016 where none of the three respondents met the minimum specified qualifications. Later, staff contacted commercial real estate agents for assistance in identifying prospective tenants, and staff fielded several inquiries. Despite this effort, the CANG parcel could not be leased in whole or in part for aeronautical purposes.

Feedback received from some potential aeronautical tenants indicated the condition of the CANG site was a factor in their decision to forego the opportunity. The buildings do not meet modern code requirements and may contain some lead paint and asbestos. Potential aeronautical tenants found the estimated cost of demolition and environmental remediation to be cost prohibitive. As a result, efforts are now focused on non-aeronautical uses and development.

In 2018, staff held preliminary discussions with the Developer for the development of the Hayward Airport Commerce Center, a warehouse complex. However, upon further review, that proposal did not meet one of the City’s primary goals to attract employment generating uses. In response to the City’s feedback and evolving market conditions, the Developer later re-structured their proposal and turned their focus to life sciences and advanced manufacturing development.

The Developer’s experience includes projects in Richmond, Buchannan Field in Concord, and the Livermore Airport. The Developer recently completed eleven advanced manufacturing deals in the life sciences field and has signed six deals for advanced manufacturing with companies such as ThermoFisher and Tenaya. Additionally, the Developer has completed 11 deals in the electronic products field, including a 248,000- square-foot facility for Siemens and a 440,000-square-foot facility for Tesla.

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DISCUSSION

The Developer is proposing an advanced manufacturing development project at the CANG site. Advanced manufacturing includes the use of innovative technologies to improve products or processes, including life sciences (i.e., drugs and therapeutics), or electronic products (i.e., robotics and energy). Advanced manufacturing is a burgeoning industry, with over 100,000 Science, Technology, Engineering, and Math and 7,000 bio manufacturing jobs within a 30-minute drive from the City.

The preliminary site plan submitted by the Developer for the CANG site depicts three buildings that total approximately 332,000 square feet (Attachment III). The architectural design of the buildings will be high end and include flexible spaces that can be adaptable for multiple users (Attachment IV). Another key component of the proposed development is a building totaling 2,000 square feet to house a museum honoring the Tuskegee Airmen, and a building of 4,000 square feet to house community service organizations, including the Civil Air Patrol, Young Marines, and the U.S. Coast Guard Cadets.

Commensurate with the ground lease for Meridian Hayward and other substantial multi- million-dollar capital projects at the Airport, City staff anticipates a lease term of 50 years and estimated rental revenue to the Airport of approximately $1 million annually. Over the life of the project, the proposed development is also estimated to generate $1 million in sales tax, $94 million in wages, and $177 million in direct economic impact. The annual rental revenue will assist in making the Airport financially self-sustaining in compliance with Council directives and FAA policy guidance, and it will be dedicated to Airport capital projects (including currently unfunded projects), equipment needs, and staffing requirements. The existing abandoned buildings on the site will be removed by the Developer.

Prior to developing the parcel for non-aeronautical use, FAA regulations require the release of the CANG site first. The release process requires a detailed explanation from the airport owner to justify FAA approval, and it also requires review and approval from several levels of the FAA, including their headquarters in Washington, D.C. The process typically takes six to nine months. City staff proposes commencing the process of developing the written request to the FAA.

Of key interest for the FAA is whether a sufficient amount of land will be available for future aeronautical development if a large tract of land is now committed for non- aeronautical use. This issue has been evaluated and the release request will note that sufficient other land is available to meet the Airport’s future aeronautical needs, whether for aircraft storage, Fixed Base Operators (FBOs), or other activities.

According to the City Attorney, under the California Government Code and provisions of the City Charter, the City has the option to either entertain new business proposals from individuals or companies that may be received from time to time or solicit public interest for development opportunities through an RFP. Also, the FAA permits airport sponsors to enter long-term leases by negotiation or solicitation. The City has taken both approaches in

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the past. For example, Ascend Development contacted the City in 2000 and their proposal for development of aircraft hangars was subsequently approved by Council, and the City also participated in lease negotiations for development of a FBO after being contacted by Meridian Companies. In other instances, the City has issued an RFP, including the previous efforts for development of the CANG site and, separately, for the lease of an existing commercial hangar.

Staff is requesting that the CAC recommend Council direct staff to commence the next steps required to move forward with the revised development proposed by the Developer, including negotiating a lease agreement with the Developer, submitting a release request to the FAA and supporting the Developer in pursuing land use entitlements and environmental clearance. The property will require a rezoning from Air Terminal-Airport Commercial (AT-AC) to Air Terminal-Commercial (AT-C).

ECONOMIC IMPACT

The proposed development would generate work for skilled and unskilled tradespeople during the construction phase, and advanced manufacturing jobs after the development is fully built. Furthermore, the City’s General Fund would benefit from additional business license fees and sales tax.

FISCAL IMPACT

The Airport is operated as a financially independent Enterprise Fund. It receives no financial support from the City’s General Fund and must solely rely on the revenue it generates to fund its annual operating and capital improvement budgets. FAA regulations require the airport to be as financially self-sustaining as possible, which is also an objective of Council. The development of the CANG parcel by the Developer will contribute approximately $1 million in annual lease revenue for the Airport Operating Fund. Over the life of the project, it is also estimated to generate $1 million in sales tax, $94 million in wages, and $177 million in direct economic impact.

STRATEGIC ROADMAP

This agenda item pertains to Section 2b of Council’s Strategic Roadmap under Grow the Economy: Engage owners and encourage activation of vacant sites.

SUSTAINABILITY FEATURES

The Airport is strongly committed to developing projects that are environmentally responsible. Therefore, staff will ensure than all plans proposed by the Developer incorporate features that are in line with the City’s sustainability guidelines.

PUBLIC CONTACT

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The agenda and staff report for this item have been posted on the City’s website and distributed to interested parties.

NEXT STEPS

As noted above, any non-aeronautical development on the CANG site is contingent on approval from the FAA. In addition, zoning must be changed from AT-AC to AT-C to accommodate non-aeronautical commercial development. Staff is requesting that the CAC recommend Council direct staff to commence the next steps required to move forward with the revised development proposed by the Developer, including negotiating a lease agreement with the Developer, submitting a release request to the FAA and supporting the Developer in pursuing land use entitlements and environmental clearance.

Prepared by: Doug McNeeley, Airport Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

Attachment II
Site Map – California Air National Guard (CANG)

Attachment III

Attachment IV

Attachment IV

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: ACT 22-041
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Assignment/Assumption of Bud Field Lease

RECOMMENDATION
That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.

SUMMARY
William “Bud” Field entered into a lease with the City of Hayward in 1999 for the leasehold located at 22005 Skywest Drive. Upon his passing in 2010, the company was transferred to a trust that bears his name and operates as Bud Field Aviation, Inc., (Bud Field). In 2019, the Trustee requested that lease rights be conveyed from William Field (as an individual) to Bud Field. This action was approved by the CAC on September 19, 2019, and by Council on October 1, 2019. At this time, the trustee is requesting that lease rights be conveyed from Bud Field to Friends of Bud Field, LLC, who is led by Adam Grosser, a long-time tenant at the Bud Field hangar. The other partners are also long-time tenants.

If this action is approved by the CAC, the item will be tentatively placed on the Council agenda for June 7, 2022.

ATTACHMENTS
Attachment I Staff Report
Attachment II Bud Field Aviation Inc. Site Map
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DATE: April 28, 2022

TO: Council Airport Committee

FROM: Director of Public Works

SUBJECT: Assignment/Assumption of Bud Field Lease

RECOMMENDATION

That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.

SUMMARY

William “Bud” Field entered into a lease with the City of Hayward in 1999 for the leasehold located at 22005 Skywest Drive. Upon his passing in 2010, the company was transferred to a trust that bears his name and operates as Bud Field Aviation, Inc., (Bud Field). In 2019, the Trustee requested that lease rights be conveyed from William Field (as an individual) to Bud Field. This action was approved by the CAC on September 19, 2019, and by Council on October 1, 2019. At this time, the trustee is requesting that lease rights be conveyed from Bud Field to Friends of Bud Field, LLC, who is led by Adam Grosser, a long-time tenant at the Bud Field hangar. The other partners are also long-time tenants.

If this action is approved by the CAC, the item will be tentatively placed on the Council agenda for June 7, 2022.

BACKGROUND

Mr. William “Bud” Field became an individual tenant at the Hayward Executive Airport (Airport) in 1983. Mr. Field entered into a 48-year commercial lease agreement with the Airport in December 1999 for the parcel located at 22005 Skywest Drive, which had been vacant since 1990. His company, Bud Field Aviation, Inc., primarily provides aircraft storage service in a hangar building constructed at this address.

DISCUSSION

Mr. Field passed away in February 2010, but the operation of his company continues to the present day as Bud Field Aviation, Inc. Jim Bowers is the Trustee of the William Field 2009 Living Trust and oversees the daily operation of the business. To perfect the record, he

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previously requested that the commercial ground lease be assigned from Bud Field, an individual, to Bud Field Aviation, Inc., which was approved by the CAC on September 19, 2019 and Council on October 1, 2019.

At this time, the Trustee is in the process of selling their leasehold rights of the existing hangar to a group operating as Friends of Bud Field, LLC. The LLC is led by Adam Grosser, who has also been a tenant at the Airport since 1998. Adam is currently the Chairman of UP.Partners, an investment firm. Mr. Grosser has been a tenant of Bud Field since 2000. Additionally, he has been an enthusiastic supporter of Young Eagles and the annual Airport Open House.

The other members of the Friends of Bud Field, LLC include executives employed with Ring Central, Goldman Sachs, Honeywell, Acrew, GI Partners, and Foundation Capital. Each of the members are aircraft owners who see the value of maintaining and investing in the Airport.

The immediate plans for Friends of Bud Field, LLC are to operate the hangar with the current tenant group. They are planning a series of improvements, including exterior painting, lighting, and an office remodel. The lease terms will remain unchanged.

STRATEGIC ROADMAP

This agenda item pertains to development at the Airport and does not directly relate to one of Council’s Strategic Priorities.

ECONOMIC IMPACT

No economic impact is associated with this administrative change to the lease.

FISCAL IMPACT

No fiscal impact is associated with this action above and beyond the existing rent amount, which is approximately $28,000 per year.

SUSTAINABILITY FEATURES

No sustainability features are associated with this report.

PUBLIC CONTACT

The agenda and staff report for this item have been posted on the City’s website and distributed to interested parties.

NEXT STEPS

If recommended by the CAC, this item will be presented to Council on June 7, 2022 for consideration.

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Prepared by: Doug McNeeley, Airport Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

Bud Field Aviation Leasehold
Attachment II

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: ACT 22-042
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Assignment/Assumption of Aviation Training Lease

RECOMMENDATION
That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.

SUMMARY
Jerry Hoffman, the owner of Aviation Training, Inc., (Aviation Training), entered into a lease with the City of Hayward in 1975 for the leasehold located at 21593 Skywest Drive. The lease expired in 2015 and was extended to 2047 shortly thereafter. At this time, Mr. Hoffman has requested that leasehold rights be conveyed from Aviation Training to Savage Aero, whose principal is Daniel Umanzor.

If this request is approved by the CAC, the item will be tentatively placed on the Council agenda for June 7, 2022.

ATTACHMENTS
Attachment I Staff Report
Attachment II Aviation Training Inc. Site Map
Attachment III Savage Aero Business Operating Plan
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DATE: April 28, 2022

TO: Council Airport Committee

FROM: Director of Public Works

SUBJECT: Assignment/Assumption of Aviation Training Lease

RECOMMENDATION

That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.

SUMMARY

Jerry Hoffman, the owner of Aviation Training, Inc., (Aviation Training), entered into a lease with the City of Hayward in 1975 for the leasehold located at 21593 Skywest Drive. The lease expired in 2015 and was extended to 2047 shortly thereafter. At this time, Mr. Hoffman has requested that leasehold rights be conveyed from Aviation Training to Savage Aero, whose principal is Daniel Umanzor.

If this request is approved by the CAC, the item will be tentatively placed on the Council agenda for June 7, 2022.

BACKGROUND AND DISCUSSION

Jerry Hoffman entered into a 40-year commercial lease agreement with the Hayward Executive Airport (Airport) on September 1, 1975, for the parcel located at 21593 Skywest Drive (Attachment II). The lease expired on August 31, 2015, and was subsequently renewed in 2016. The leased area contains 50,018 square feet of space, and a hangar building with an attached office area.

Jerry Hoffman proposes to sell his leasehold interest to Savage Aero, subject to Council approval as outlined in the attached information (Attachment III). All other terms of the lease will remain unchanged.

ECONOMIC IMPACT

No economic impact is associated with this administrative change to the lease.

FISCAL IMPACT

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No fiscal impact is associated with this action above and beyond the existing rent amount, which is approximately $22,000 per year.

STRATEGIC ROADMAP

This agenda item pertains to development at the airport and does not directly relate to the Council’s Strategic Roadmap.

SUSTAINABILITY FEATURES

No sustainability features are associated with this report.

PUBLIC CONTACT

The agenda and staff report for this item have been posted on the City’s website and distributed to interested parties.

NEXT STEPS

If recommended by the CAC, this item will be forwarded to Council for consideration on June 7, 2022.

Prepared by: Doug McNeeley, Airport Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:

_________________________________
Kelly McAdoo, City Manager

Attachment II

AVIATION TRAINING SITE MAP

Attachment III

Hayward Airport Plot “F” Transfer to Daniel Umanzor
~ BUSINESS/OPERATING PLAN ~~

Purpose to Operate at the Hayward Airport:

Plot “F” particulars – address is 21593 Skywest Drive, Hayward, CA 94542 – Plot “F” consists of approximately 45,000 SqFt, including the Building of 5,000 SqFt (Hanger/Reception and Classrooms) plus ramp, aircraft and auto parking of 35,000 SqFt; leased for some 50-years by Aviation Training, Inc., This is the subject of this desired leasehold transfer from Jerome Hoffmann of Aviation Training, Inc. to Daniel Umanzor of Savage Aviation, LLC.

Purpose: To continue and weave my existing Hayward Airport business into the facility at Plot “F”, including Aircraft Maintenance (to remain at my existing lease at 20511 for the time-being) – aircraft repairs and avionics and panel building to immediately transfer to Plot “F” hanger. Currently, we are building instrument panels using specialized machining equipment. We are currently the only shop in the bay aera specializing in this type of work. For us to receive a Garmin dealer license we need dedicated avionics workspace. The available office space in the Plot F will allow us to comply with this requirement. We plan to also rent space to a new flight school, and an aircraft accessory repair station that is currently located off airport. My overall goal is to benefit from the security of a long-term Hayward Airport Lease.

Employees: At this time, we have just expanded to 3 full time employees and 2 part time. all my employees are experienced and trained my me personally over the past 2 years to provide repeatable quality service. where required, Factory Training and Certification is provided. All employees are offered benefits and a relaxed work environment allowing for personal growth and job satisfaction. We are all active members of this airport community, and donate our time to many airport groups that focus on bringing people in from the local community to help bring awareness to our airport.

Vision Statement: My goals are to maintain the hanger and grounds in a professional and cosmetically beautiful manner; I hope also to maintain safety in and around the premises. My long-term goals are to expand the hanger to allow my airframe and power plant shop to be located under the same roof as my avionics shop. we hope in the next few years to receive our avionics repair station certificate then to expand over to the airframe and powerplant repair station. I hope also to expand the existing grounds with T-Shades an amenity available in every bay area airport except hayward.

Attachment III

Safety Issues: As part of my goals to improve the Plot “F” hanger and grounds, I plan to vigilantly maintain the hanger and grounds, including Fire Safety Protocols and advice from grounds maintenance professional assistance, including irrigation and plant management. My goal will always be to make Plot “F” a beacon of community pride.

Five-Year Plan: already outlined above – building and grounds maintenance, T-shade additions at the front of the building and full utilization of the hanger, front office and classrooms.

New Business: My plan is that through innovative business offerings (avionics, panel building, specialized airframe and power plant maintenance, certified accessory repair and carefully selected Flight School activities) the business at Plot “F” will grow carefully but exponentially – my management oversight and skills will enhance this growth! Advertising: my business has primarily grown through community “word-of-mouth”; if required, I will seek-out other forms of print and electronic advertising; but the quality and consistency of my work and those working under me have thus far more than helped “advertise” my business (any and all significant exterior signage will be pre- approved by the Airport Manager)

I also attach my prior financials and business plans to supplement this Plan

Thank you for your consideration of my Business/Operating Plan for Plot “F” – if any questions, please feel free to contact me:

Cell: 415-240-8216 – by email at [email protected]
To contact Lessor Jerome Hoffman/Aviation Training, Inc.  Cell: 415-999-6184 – by email a t [email protected]

Daniel UImanzor, President
Savage Aero, Inc.

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-040
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Oral Presentation: Update on Reuse of Skywest Property

RECOMMENDATION
That the Council Airport Committee receives an oral presentation on the reuse of the Skywest Property.

SUMMARY
Staff will present an oral update on the reuse of Skywest Property.

ATTACHMENTS
None
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-041
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Update on Hangar Condition Assessment Project

RECOMMENDATION
That the Council Airport Committee reviews and comments on this report.

SUMMARY
Staff will present an oral update on the Hangar Condition Assessment Project.

ATTACHMENTS
None.

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-042
DATE: April 28, 2022
TO: Council Airport Committee
FROM: Director of Public Works

SUBJECT
Review Updated 2022 Agenda Planning Calendar

RECOMMENDATION
That the Council Airport Committee reviews and comments on this report.

SUMMARY
The updated 2022 Agenda Planning Calendar is presented for the Committee’s review and comment.

ATTACHMENTS
Attachment I Staff Report
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Page 1 of 2 ends

DATE: April 28, 2022

TO: Council Airport Committee

FROM: Director of Public Works

SUBJECT: Review Updated 2022 Agenda Planning Calendar

RECOMMENDATION

That the Council Airport Committee reviews and comments on this report.

DISCUSSION

For the Council Airport Committee’s (CAC) consideration, staff has prepared this updated 2022/2023 Agenda Planning Calendar with topics and anticipated discussion dates listed below.

JUNE 24, 2022

1. Skywest Property Update

2. Aircraft Noise in Community & Annual Noise Report for 2021 OCTOBER 27, 2022

1. Skywest Property Update

2. Update on Sulphur Creek Project
JANUARY 26, 2023

1. Skywest Property Update

2. Taxiways Zulu & Foxtrot – Project Update

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UNSCHEDULED

1. Review of Catalyst Sites in Industrial Sector

2. Attracting Small Commercial Flight Operators

3. Future Development Plans for South Side of Airport

4. Internship Opportunities at Airport

5. Report on Summer Activities for Teens at Other General Aviation Airports

6. Revenue Generating Potential of CANG Site

7. Partnership Opportunities with Other Airports for U.S. Customs

8. New Lease – Raja Indian Cuisine

NEXT STEPS

Upon consideration and approval from the Committee, staff will schedule items accordingly for future CAC meetings.

Prepared by: Douglas McNeeley, Airport Manager

Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

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