CITY COUNCIL STAFF REPORT
DATE: NOVEMBER 12, 2025 CONSENT CALENDAR
SUBJECT: APPROVE AIRPORT LEASE AGREEMENT NO. 25N024 WITH STRIKE TECHNOLOGY, INC. DBA WILORCO FOR 2901 E. ALEJO ROAD, (THE "ACCELERATOR CAMPUS") BLDG 13 AT THE PALM SPRINGS
INTERNATIONAL AIRPORT
FROM: Scott C. Stiles, City Manager
BY: Department of Aviation
SUMMARY:
This action approves Airport Lease Agreement No. 25N024 with Strike Technology Inc. dba Wilorco for 2901 E. Alejo Road, Building #13 at the Palm Springs International Airport (Airport).
RECOMMENDATION:
1. Approve Airport Lease Agreement No. 25N024 with Strike Technology Inc. dba Wilorco for 2901 E. Alejo Road, Building #13 at the Palm Springs International Airport for the term beginning October 1, 2025 and ending on June 30, 2026.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B), Strike Technology Inc. dba Wilorco is registered to do business in the state of California.
BACKGROUND:
The City-owned, airport-managed property at 2901 East Alejo Road, also known as the Accelerator Campus, contains twelve buildings comprising eight industrial warehouse/storage buildings and four office buildings, all within the boundaries of Airport property. The Accelerator Campus was previously managed by the Coachella Valley Economic Partnership (CVEP) and it reverted to the City of Palm Springs following the expiration of CVEP's lease on September 30, 2023. CVEP initiated a four-month transitional period back to the City that concluded on December 2023.
City Council Staff Report
November 12, 2025 -- Page 2
Airport Lease Agreement – Strike Technology Inc dba Wilorco In December 2023, the City hired Gordian, which conducted a due diligence assessment to determine facility age and condition, along with costs for improvements. The building’s average asset age was determined to be forty years or older, and the inspection concluded that renovations to bring the facilities up to a fully compliant, commercial-use occupancy would cost at least $6.8 million.
On February 15, 2024, the Airport hired a qualified appraiser who evaluated the Accelerator Campus condition. On March 3, 2024, a fair market rent value was established for each of the buildings, as a non-aeronautical airport property, as listed in Table 1.
Table 1
Building
No.
Appx. Building
Area (sf)
Fair Market Rent
(sf)
Appx Fair Market
Rent/mo
1 6,100 $0.40 $2,440
2 960 $0.40 $384
3 960 $0.40 $384
4 1,920 $0.50 $960
5 3,570 $0.50 $1,785
6 960 $0.40 $384
7 381 $0.40 $154
8 & 9 10,321 $0.50 $5,160
10 2,240 $0.50 $1,120
12 11,486 $0.70 $8,040
13 1,891 $0.40 $756
On March 20, 2024, the Airport Commission was notified of the tenant relocation strategy.
This strategy included informing the existing tenants of their relocation options, coordinating with the City to connect them with a broker, and communicating the requirements of the new lease. Tenants were offered the option to sign a new temporary lease at fair market value specific to the tenant, or they could choose to vacate the premises.
On May 30, 2024, the fair market rent and terms of the airport lease were discussed with each tenant either in person or by telephone. The tenants were offered the opportunity to continue their occupancy in an "AS-IS" condition, subject to the airport lease terms or allowed 60 days at their current lease rate to vacate the premises.
On January 7, 2025, the Airport met with Strike Technology Inc. dba Wilorco to confirm their intent to stay in the premises currently occupied on the Accelerator Campus on a temporary basis. The Airport listened to the unique needs of the business, concerns about the premises, and developed a plan that would result in an executed Airport Lease Agreement.
City Council Staff Report
November 12, 2025 -- Page 3
Airport Lease Agreement – Strike Technology Inc dba Wilorco The Accelerator Campus is located on airport property and is designated for future aeronautical use according to the Airport Layout Plan. An aerial view of the existing location is provided below:
To obtain an executed lease with the City of Palm Springs, Strike Technology was informed that they must maintain a valid business license with the City, provide a certificate of insurance that meets the City’s requirements, and remain current on all rent owed to the City of Palm Springs. A lease was signed by Strike Technology on January 27, 2025. However, the lease could not be brought to City Council at that time due to Strike Technology’s failure to provide the required certificate of insurance.
STAFF ANALYSIS:
The Airport receives grant funding from the Federal Aviation Administration (FAA) for federal assistance programs. For the airport to accept federal funds, the airport must agree to certain grant assurances. Because of the special circumstances with the tenants of the former CVEP Accelerator Campus, the Airport agreed to enter month-to-month leases with existing tenants, under an emergency temporary use, which is allowable by the FAA.
On March 7, 2025, the Airport engaged with an aeronautical / transportation related company to use the building occupied by Strike Technology; therefore, the Airport issued a 60-day notice of termination on July 2, 2025 requiring Strike Technology to vacate Bldg #5 by mid-September. After discussing options with Strike Technology, the Airport decided to provide a temporary lease for space in an adjacent building (Bldg #13) to store the company’s contents. The Airport Lease will allow time for Strike Technology to
City Council Staff Report
November 12, 2025 -- Page 4
Airport Lease Agreement – Strike Technology Inc dba Wilorco relocate by June 30, 2026 while also allowing the Airport to follow FAA land use regulations regarding airport property.
This comprehensive approach highlights the City’s commitment to ensuring a smooth transition in property management, compliance with FAA regulations, and robust support for tenants through new lease arrangements and relocation assistance.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
The Approval of this action supports City Council priority 1D, Economic Development as well as the Airport’s Strategic Plan Priority 4 – Goal 2, Maximize non-aeronautical revenue opportunities for the City.
FISCAL IMPACT:
The Airport Lease Agreement with Strike Technology Inc dba Wilorco will generate gross revenue to the Airport in the amount of $6,804 for the 9-month term. All revenue will be applied to Airport account 415.38065 non-aeronautical ground rental.
REVIEWED BY:
Department Director: Harry Barrett
Assistant City Manager: Jeffrey S. Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Airport Lease Agreement
B. Public Integrity Disclosure