Thursday, October 26, 2023
5:30 PM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Airport Administration Building Meeting Room
Council Airport Committee
Agenda
October 26, 2023Council Airport Committee Agenda
CALL TO ORDER Pledge of Allegiance: Council Member Zermeño
ROLL CALL
PUBLIC COMMENTS:
The Public Comment section provides an opportunity to
address the Committee on items not listed on the agenda. The Committee welcomes 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, your item will be taken under
consideration and may be referred to staff for further action.
Speakers shall not use threatening, profane, or abusive language which disrupts, disturbs, or otherwise impedes the orderly conduct of a Committee meeting. The City is committed to maintaining a workplace free of unlawful harassment and is mindful that City staff regularly attend Committee meetings.
Discriminatory statements or conduct that is hostile,
intimidating, oppressive, or abusive – are per se disruptive to a meeting and will not be tolerated.
APPROVAL OF MINUTES
Approval of Minutes of the Council Airport Committee (CAC) Meeting held on June 21, 2023
MIN 23-1071.
Attachments: Attachment I Minutes
REPORTS/ACTION ITEMS
Third Amendment to the Existing Ground Lease with Mahabal Hospitality, LLC
ACT 23-0782.
Attachments: Attachment I Staff Report
Attachment II Mahabal Parcel Map
Oral Presentation: Update on Reuse of Skywest PropertyRPT 23-1043.
Oral Presentation: Debrief of 2023 Airport Open House EventRPT 23-1054.
October 26, 2023Council Airport Committee Agenda
FUTURE AGENDA ITEMS
Updated 2024 Agenda Planning CalendarRPT 23-1065.
Attachments: Attachment I Staff Report
COMMITTEE MEMBER/STAFF ANNOUNCEMENTS AND REFERRALS
ADJOURNMENT
NEXT REGULAR MEETING - 5:30 PM, THURSDAY, JANUARY 25, 2024
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 23-107
DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT
Approval of Minutes of the Council Airport Committee (CAC) Meeting held on June 21, 2023
RECOMMENDATION
That the Council Airport Committee (CAC) reviews and approves the June 21, 2023, Committee Minutes. ..End
SUMMARY
The June 21, 2023 CAC meeting minutes are presented for the Committee’s review and approval.
ATTACHMENTS
Attachment I Minutes
CITY OF HAYWARD Printed on 10/23/2023Page 1 of 1
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DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT Approval of Minutes of the Council Airport Committee (CAC) Meeting held on June 21, 2023
CALL MEETING TO ORDER
Council Member (CM) Zermeño called the meeting to order at 5:44 p.m. with CM Syrop and CM Goldstein present.
City staff: Alex Ameri, Director of Public Works
Doug McNeeley, Airport Manager
Pamela Svrdlin, Airport Operations Supervisor
Todd Strojny, Airport Business Supervisor
Amy Toste, Senior Secretary
Dustin Claussen, Assistant City Manager
Members of the public present:
William M Budrewicz
Kristen Can
Mary Clements
William Matthew
Tom Panico
Carlos Rodriguez
Katherine Sanchez
Sandra Toney
Karla Werning
Lucille Yee
PUBLIC COMMENTS
None.
REPORTS/ACTION ITEMS
1. 21015 Skywest Drive: 2nd Amendment to Ground Lease with APP Jet Center
Airport Manager Doug McNeeley presented the report.
Committee Questions
Council Member Zermeño asked how long this lease would be extended. Airport Manager McNeeley replied that if APP Jet Center meets the guidelines, then the lease will be extended an additional 15 years.
Council Member Syrop asked how many land leases at the airport have a 50-year lease. Mr.
McNeeley responded that several have a 50-year lease term.
Public Comments
None.
Committee Comments
None.
A motion was made by CM Goldstein and seconded by CM Salinas to recommend this item to the City Council for their approval. The motion passed unanimously.
2. Oral Presentation: Update on Reuse of Skywest Property
Airport Manager McNeeley presented the informational report. A draft Airport Layout Plan (ALP) which includes this development is expected by the end of 2023.
Committee Questions
None.
Public Comments
None.
Committee Comments
None.
3. Oral Presentation: Internship Opportunities at Airport
Airport Operations Supervisor Pamela Svrdlin presented the report. The Airport Administration Office will host a high school intern for four weeks. This person will observe airport operations and assist with planning the annual Airport Open House.
Committee Questions
CM Zermeño asked if the intern will be paid. Ms. Svrdlin said it is a non-paid position.
CM Syrop asked how many interns will be at the airport this summer and Operations Supervisor Svrdlin confirmed that there will be one.
CM Syrop and CM Goldstein requested that future interns be compensated for the work they do. Director Ameri responded that the department currently has two other unpaid, high school aged interns working at City Hall that are receiving school credit in lieu of monetary compensation.
CM Syrop asked if the goal of an airport intern is to be employed in the aviation industry.
Ms. Svrdlin said yes and noted there is an industry-wide effort to promote aviation as a career.
CM Syrop asked if there was a way to collaborate with Chabot College for future internship opportunities. CM Zermeño answered that has been explored.
Public Comments
William Matthew requested more information about internship opportunities at the airport.
Committee Comments
Council Member Zermeño supported opportunities for internships at Hayward Executive Airport and suggested that the fixed-base operators (FBO’s) may be interested in such a program.
4. Oral Presentation: Unleaded Fuel Sales at Airport
Airport Manager McNeeley presented the informational report about the availability of unleaded UL94 avgas at the Airport.
Committee Questions
CM Syrop asked if UL94 was cheaper to make than the other types of fuel. Tom Panico, General Manager of APP Jet Center, answered that UL94 is more expensive to refine than 100LL avgas.
CM Syrop questioned what the motivation is, then, for pilots to buy UL94. Mr. Panico replied that tit is better for the environment. CM Syrop asked what amount of fuel commissions can be expected by the sale of UL94. Airport Manager McNeeley responded that there is currently insufficient data to make a valid prediction.
CM Syrop wanted to know if there is a way to encourage the use of UL94. Mr. McNeeley said that sales may increase as production ramps up and the retail price comes down.
CM Zermeño asked about the current price for UL94, and Mr. Panico replied that it is $8.13/gallon and 100LL is $7.69/gallon.
CM Goldstein wondered what the cost would be for building a UL94 refinery at Hayward.
Mr. Panico said it would require a significant investment.
Public Comments
William Matthew asked about the process of changing an aircraft engine to operate on UL94. Tom Panico briefed Mr. Matthew on the process.
Sandra Toney asked if 100LL or UL94 is less harmful to people. Mr. McNeeley said that UL94 is considered a more “green” product.
Committee Comments
None.
Committee Member/Staff Announcements and Referrals
None.
ADJOURNMENT
The meeting adjourned at 6:13 p.m.
Meeting Attendance
Present Present Excused Absent
06/21/23 to Date This to Date This to Date This
Meeting Calendar Year Calendar Year Calendar Year
Francisco Zermeño 3 0 0
George Syrop 3 0 0
Dan Goldstein 3 0 0
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: ACT 23-078
DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT
Third Amendment to the Existing Ground Lease with Mahabal Hospitality, LLC
RECOMMENDATION
That the Council Airport Committee (CAC) reviews this report and recommends approval to Council. ..End
SUMMARY
In November 2017, the City entered into a lease agreement with a developer to build two new hotels on vacant airport parcels. Construction on the Home2Suites hotel was completed in early 2022 and the hotel opened for business in March of that year. Plans and specifications for the Hyatt Place hotel property were approved and construction will commence by the end of 2023.
Prior to construction of the first hotel, the Federal Aviation Administration (FAA) requested additional information related to its siting and proximity to protected airspace. A seven-month period was required for approval of the revised Airport Layout Plan (ALP) and property release documents by the FAA, causing construction of the Hyatt Place development to be pushed back to November 2020, which was outside the lease-mandated two-year construction timeline of no later than November 2019. Accordingly, an amendment for this extension was approved by Council on October 1, 2019, that allowed for a three- year construction window from November 2020 to November 2023. However, soon after the amendment was executed, the COVID19 pandemic befell the United States and all development of the Hyatt hotel ceased for three years, which was the length of the extension authorized under the Second Amendment.
As the business environment has returned to pre-COVID19 levels, this third amendment is required to extend the Hyatt Place construction period from June 1, 2023, to June 1, 2026, and to also allow for construction of a banquet facility and retail space by no later than June 1, 2028.
ATTACHMENTS
Attachment I Staff Report
Attachment II Leasehold Map
CITY OF HAYWARD Printed on 10/23/2023Page 1 of 1
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DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT: Third Amendment to the Existing Ground Lease with Mahabal Hospitality, LLC
RECOMMENDATION
That the Council Airport Committee (CAC) reviews this report and recommends approval to Council.
SUMMARY
In November 2017, the City entered into a lease agreement with a developer to build two new hotels on vacant airport parcels. Construction on the Home2Suites hotel was completed in early 2022 and the hotel opened for business in March of that year. Plans and specifications for the Hyatt Place hotel property were approved and construction will commence by the end of 2023.
Prior to construction of the first hotel, the Federal Aviation Administration (FAA) requested additional information related to its siting and proximity to protected airspace. A seven- month period was required for approval of the revised Airport Layout Plan (ALP) and property release documents by the FAA, causing construction of the Hyatt Place development to be pushed back to November 2020, which was outside the lease-mandated two-year construction timeline of no later than November 2019. Accordingly, an amendment for this extension was approved by Council on October 1, 2019, that allowed for a three-year construction window from November 2020 to November 2023. However, soon after the amendment was executed, the COVID19 pandemic befell the United States and all development of the Hyatt hotel ceased for three years, which was the length of the extension authorized under the Second Amendment. As the business environment has returned to pre- COVID19 levels, this third amendment is required to extend the Hyatt Place construction period from June 1, 2023, to June 1, 2026, and to also allow for construction of a banquet facility and retail space by no later than June 1, 2028.
BACKGROUND
Over the past several years, staff developed a plan to market non-aeronautical parcels on Airport property. The City was approached by a developer who expressed interest in three
parcels for the potential development of two hotels. This interest culminated in an agreement between the two parties, and on November 14, 20171, Council approved ground lease agreements between the City and both Ramesta Hospitality, LLC (for the Home2Suites hotel on Hesperian Boulevard), and Mahabal Hospitality, LLC (for the Hyatt Place hotel at the corner of West A Street and Skywest Drive).
On October 16, 20182, a First Amendment was approved by Council in order to finalize financing requirements with the developer’s lender for each lease.
On October 1, 20193, a Second Amendment was approved by Council in order to allow for an additional three years to construct the hotel. This request was needed due to a lengthy FAA approval process that in turn affected construction milestones. Additional review time was required due to staff turnover at the FAA and lack of familiarity with the project:
The revised Airport Layout Plan (ALP)
An approved airspace study
Completion of a FAA property release for non-aeronautical purposes The preparation of a site plan and a drawing depicting the hotels in relation to the Federal Regulation, Title 14 Part 77, Safe, Efficient Use and Preservation of the Navigable Airspace, (Part 77) protected airspace has affected construction milestones
The Second Amendment with the hotel developer required that construction for the Hyatt Place hotel be completed by no later than November 30, 2023. However, due to conditions outside of the developer’s control, the lease with Mahabal Hospitality, LLC must be amended a third time to allow for a revised construction date.
DISCUSSION
The developer is in the process of preparing final environmental documents for the Hyatt Place hotel situated on the corner of Skywest Drive and West A Street. Once approved by the City, the developer will receive a grading permit and break ground by later this year.
The site for the Hyatt Place hotel is depicted in Attachment II. As noted in prior reports, the leasehold is approximately 160,000 square feet and will contain the following features and amenities:
A minimum of 110 rooms;
A banquet facility that seats a minimum of 200 persons, and can be subdivided into three smaller rooms and include retail space;
A swimming pool; and
A nationally-branded, stand-alone restaurant
1 https://hayward.legistar.com/LegislationDetail.aspx?ID=3210067&GUID=95082EE2-D0CC-4F2E-B305-9C8291EBF970&Options=&Search= 2 https://hayward.legistar.com/LegislationDetail.aspx?ID=3701970&GUID=B2C33FC2-BA36-4F9D-B545-F8C88FA1D03B&Options=&Search= 3 https://hayward.legistar.com/LegislationDetail.aspx?ID=4148712&GUID=4F08BD8E-32C3-42D4-8A30-252061B16693&Options=&Search=
FAA Approval
The FAA has reviewed all of the documentation for the site, including the Airport Layout Plan, airspace studies, property releases for non-aeronautical use, and protected airspace studies. It was determined that the hotel met all of the criteria and, therefore, the FAA has approved the construction of the hotel.
Impact of COVID19
Soon after approval from the FAA, the COVID19 pandemic befell the world in early 2020 and halted work in many different industries, including the construction trades. As a result, any work on the Hyatt Place hotel was suspended until the effects of the pandemic eased and physical and financial conditions improved to commence work on the hotel once again.
In early 2023, the developer restarted the project and submitted their hotel plans to the City. After subsequent revisions the plans were approved, allowing the developer to proceed with environmental investigation. The second phase of environmental work is underway and results will be forwarded to the City. Once approved, the developer will be able to break ground on the project, which is expected later this year.
Lender Requirements
To secure new financing, the developer’s lender is requesting an amendment to the ground lease that changes the construction timeline for the hotel from a November 2023 completion date to June 1, 2026. A second timeline for the construction of a banquet hall/retail space would allow for completion two years after construction of the hotel, or no later than June 1, 2028.
Other minor changes related to more technical aspects of the lease (address changes, binding effect of amendment, etc.) were also requested by the lender. All other terms and conditions of the lease remain unchanged and in effect.
ECONOMIC IMPACT
This hotel development will generate work for skilled and unskilled tradespeople during the construction phase, and retail/service sector jobs after the hotel is built.
FISCAL IMPACT
Once a Certificate of Occupancy is issued, the Airport Operating Fund will realize a revenue increase of approximately $210,000 per year from the Hyatt Place hotel. Additional economic impact from transient occupancy tax, sales tax, and property user’s tax will be approximately $500,000, which will benefit the City’s General Fund. Furthermore, the City’s General Fund will benefit from additional business license fees and sales/transient occupancy tax.
STRATEGIC ROADMAP
This agenda item pertains to development at the Airport and does not directly relate to any of the six priorities outlined in the Council’s Strategic Roadmap.
SUSTAINABILITY FEATURES
The Airport is strongly committed to developing projects that are environmentally responsible. Therefore, all plans proposed by the developer incorporated features that are compatible with the City’s sustainability guidelines.
PUBLIC CONTACT
This topic was discussed at the Council Airport Committee meeting of October 12, 2017, with unanimous support expressed for the project. Furthermore, the projects were approved by Council on November 14, 2017. The First Amendment for both developments was reviewed and approved by Council on October 16, 2018. This Second Amendment was presented to and approved by the Council Airport Committee on September 19, 2019. The staff report and relevant attachments for this item have been posted on the City’s website and distributed to interested parties.
NEXT STEPS
If recommended by the Committee and approved by Council, Airport staff will prepare the Third Amendment for execution by the City Manager, in a form approved by the City Attorney.
Prepared by: Doug McNeeley, Airport Manager
Recommended by: Alex Ameri, Director of Public Works
Approved by:
_______________________________________
Kelly McAdoo, City Manager
Attachment II - Mahabal (Hyatt) Parcel
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 23-104
DATE: October 26, 2023
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 Skywest Property.
SUMMARY
Staff will present an oral update on the reuse of the Skywest Property.
ATTACHMENTS
None.
CITY OF HAYWARD Printed on 10/23/2023Page 1 of 1
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 23-105
DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT
Oral Presentation: Debrief of 2023 Airport Open House Event
RECOMMENDATION
That the Council Airport Committee receives an oral presentation on the 2023 Airport Open House event.
SUMMARY
Staff will present an oral presentation on the 2023 Airport Open House event.
ATTACHMENTS
None.
CITY OF HAYWARD Printed on 10/23/2023Page 1 of 1
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 23-106
DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT
Updated 2024 Agenda Planning Calendar
RECOMMENDATION
That the Council Airport Committee reviews and comments on this report.
SUMMARY
The updated 2024 Agenda Planning Calendar is presented for the Committee’s review and comment.
ATTACHMENTS
Attachment I Staff Report
CITY OF HAYWARD Printed on 10/23/2023Page 1 of 1
powered by Legistar™
DATE: October 26, 2023
TO: Council Airport Committee
FROM: Director of Public Works
SUBJECT: Updated 2024 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 2024 Agenda Planning Calendar with topics and anticipated discussion dates listed below.
JANUARY 25, 2024
1. Skywest Property Update
2. Airport Layout Plan (ALP) Project
3. Phase IV of Hangar Repair Project – Update
APRIL 25, 2024
1. Skywest Property Update
2. Taxiways Zulu & Foxtrot – Project Update
3. Aircraft Noise in Community and Annual Noise Report for 2023 JULY 25, 2024
1. Skywest Property Update
2. Partnership Opportunities with Other Airports for U.S. Customs
UNSCHEDULED
1. Attracting Small Commercial Flight Operators
2. Surplus Land Act – Update
3. Report on Summer Activities for Teens at Other General Aviation Airports
4. Update on Airport Operations Data
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