CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 5, 2026
To: Honorable Mayor and City Council Members
From: Luis Portillo, Director of Economic Development
Department: Economic Development
Subject: Inland Valley Development Agency (IVDA) – License Agreement for Airport Gateway Monument at 3rd Street
and Palm Avenue (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-127 to approve the following:
1. The License Agreement with the Inland Valley Development Agency (IVDA), granting a revocable license and right of entry over City-owned property located at the southwest corner of 3rd Street and Palm Avenue, San Bernardino, California, for a term of 25 years, expiring 2051, with an option to extend for up to 20 years, for the purpose of constructing, installing, operating, and maintaining an airport gateway monument and related improvements.
2. Authorize the City Manager to execute the License Agreement or any other documents to effectuate the License Agreement.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
This action will authorize a License Agreement between the City of San Bernardino and the Inland Valley Development Agency (IVDA), granting IVDA a license and right of entry to use portions of City-owned property located at the southwest corner of 3rd Street and Palm Avenue for the construction, installation, operation, and maintenance of an airport gateway monument and point of entry feature. The proposed monument will consist of repurposed airplane fuselage parts, such as wings and/or tail sections, and will serve as a distinctive visual landmark announcing the airport entrance to travelers and visitors approaching from the west. The licensed area encompasses two parcels totaling approximately 15,215 square feet of City-owned land within the City of San Bernardino, as surveyed and described in the attached legal descriptions.
Background
Michael Burrows, CEO of the Inland Valley Development Agency, has requested authorization from the City of San Bernardino to create a gateway point of entry to the San Bernardino International Airport. The proposed location is at the southwest corner of 3rd Street and Palm Avenue—a highly visible intersection on the boundary between the City of San Bernardino and the City of Highland.
The subject property is situated within the City of San Bernardino, being a portion of Lot 4, Block 68, Rancho San Bernardino, as recorded in Book 7, Page 2 of Maps, Records of San Bernardino County. The property is located adjacent to IVDA’s Parcel “B-1C East,” which lies to the south and west of the proposed license area.
Licensed Land Surveyor Edward J. Bonadiman, P.L.S. 7529 of Bonadiman & Associates, Inc., completed the boundary surveys and legal descriptions for the two proposed parcels in early 2026:
•Parcel A (Corner Gateway Feature Area): Approximately 5,301 square feet, located at the northwest quadrant of the 3rd Street and Palm Avenue intersection, surveyed February 12, 2026.
•Parcel B (Southwest Corner Monument Area): Approximately 9,914 square feet, located along the Palm Avenue frontage south of 3rd Street within the City of San Bernardino, surveyed February 23, 2026.
Together, the two parcels encompass the primary visual approach corridors to the airport from the north and west, making them ideal locations for the proposed monument feature. The monument will consist of repurposed commercial airplane fuselage components, including wings and/or tail sections, positioned to evoke the identity of the San Bernardino International Airport and serve as a wayfinding landmark.
Discussion
The proposed agreement reflects an ongoing collaborative relationship between the City of San Bernardino and IVDA to enhance the public image and economic vitality of the San Bernardino International Airport corridor. The airport serves as a significant regional economic driver, and improving its gateway aesthetics is consistent with broader revitalization goals for the area.
The project is currently in the property and legal documentation phase. Survey work for both parcels has been completed by Bonadiman & Associates, Inc. and signed legal descriptions (Exhibit “A”) and plats (Exhibit “B”) have been finalized. The City’s Real Property Division, in coordination with the City Attorney’s Office, has prepared the License Agreement for Council consideration. This phase is expected to conclude upon Council approval and execution of the License Agreement, anticipated within the next thirty (30) to sixty (60) days.
Overall Project Timeline
The overall project timeline is estimated as follows:
1. Survey and Legal Description Completion – Completed (February 2026)
2. License Agreement Drafting and City Attorney Review – Completed (April– May 2026)
3. City Council Approval and Agreement Execution – Pending (anticipated July 2026)
4. Monument Design and Engineering – To be initiated by IVDA following agreement execution
5. Permitting and Environmental Review – To be completed by Lessee prior to construction
6. Construction and Installation of Airport Gateway Monument – Target completion within 12–18 months of agreement execution
7. Ribbon Cutting / Dedication Ceremony – Anticipated following monument completion
Construction, Maintenance, and Operational Responsibilities IVDA, as Lessee, will be solely responsible for all costs and activities associated with the monument's design, engineering, construction, permitting, maintenance, and operation. Monument design and engineering will be initiated by IVDA following execution of the License Agreement, followed by permitting and environmental review, including compliance with FAA height and obstruction clearance requirements given the site's proximity to the airport. Construction and installation are targeted for completion within 12–18 months of agreement execution. Following construction, IVDA will retain ongoing responsibility for maintenance and operation of the monument for the duration of the license, at no cost to the City. This allocation of responsibility ensures the City receives the benefit of the gateway improvement without assuming any major financial or operational obligation.
Upon City Council approval and execution of the License Agreement, IVDA will proceed with monument design, engineering, and permitting. IVDA will be responsible for obtaining all required local, state, and federal approvals, including any applicable building permits, aesthetic/design review approvals, and compliance with Federal Aviation Administration (FAA) height and obstruction clearance requirements given the proximity to the airport. Upon completion, a public ribbon cutting and dedication ceremony is anticipated to celebrate the new gateway feature and its significance to the airport and the surrounding community.
Term of Agreement
The License Agreement grants IVDA a revocable license and right of entry over the subject property. The term of this Agreement shall commence upon the Effective Date and shall continue for an initial term of twenty-five (25) years unless earlier terminated pursuant to this Agreement. GRANTEE shall have two (2) options to extend the term for additional periods of ten (10) years each upon written notice to GRANTOR not less than one hundred eighty (180) days prior to expiration of the then-current term, provided GRANTEE is not in material default under this Agreement at the time of exercise.
Strategic Goals and Priorities
The proposed agreement aligns with the City's Strategic Targets and Goals by advancing economic development, community identity, intergovernmental cooperation, and the efficient use of public assets. The San Bernardino International Airport gateway monument will enhance the airport corridor's visibility and appeal to business travelers, cargo operators, and commercial investors, while serving as a distinctive civic landmark that reinforces. San Bernardino's identity as a regional hub for aviation and commerce. The agreement formalizes a collaborative relationship between the City and IVDA in furtherance of shared airport district objectives, and it does so by converting currently unimproved and underutilized City parcels into a community benefit — without requiring any City capital expenditure.
Fiscal Impact
The agreement will be structured at a nominal rent of $500.00 per year, consistent with the public benefit nature of the proposed use and the intergovernmental character of the arrangement. The nominal rent of $500.00 per year reflects the intergovernmental and public benefit nature of the agreement rather than a fair market lease rate. No formal fair market value appraisal was conducted for the licensed area, consistent with the City's practice of using below-market or nominal consideration for agreements between public agencies that advance a shared civic or economic development purpose.
This approach is consistent with prior City agreements involving public agency partners, including the City's ground lease with IVDA/SBIAA at 3rd Street and Palm Avenue, which similarly provides for nominal annual rent in exchange for public infrastructure and community benefit. The public benefit derived from the agreement — a distinctive airport gateway landmark constructed, maintained, and operated entirely at IVDA's expense — offsets the nominal rent charged, as the City incurs no capital, design, engineering, permitting, construction, or ongoing maintenance costs for the improvement.
All costs associated with monument design, engineering, construction, permitting, maintenance, and operation will be borne entirely by IVDA as Lessee. The City will incur no capital expenditure related to this project. Any possessory interest tax obligations arising from the agreement shall be the sole responsibility of the Lessee.
Because the $500.00 in annual rental revenue is nominal in scale, staff does not recommend a corresponding amendment to the FY 2026/27 operating budget to reflect this revenue. For the sake of inter-governmental goodwill it can be absorbed as a minor revenue line adjustment at year-end close.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-127 to approve the following:
1. The License Agreement with the Inland Valley Development Agency (IVDA), granting a revocable license and right of entry over City-owned property located at the southwest corner of 3rd Street and Palm Avenue, San Bernardino, California, for a term of 25 years, expiring 2051, with an option to extend for up to 20 years, for the purpose of constructing, installing, operating, and maintaining an airport gateway monument and related improvements.
2. Authorize the City Manager to execute the License Agreement or any other documents to effectuate the License Agreement.
Attachments
Attachment 1 Resolution No. 2026-127
Attachment 2 Proposed License Agreement IVDA
Attachment 3 Exhibit A & B Legal Descriptions and Plat Map Ward:
Third Ward
Synopsis of Previous Council Actions:
None
CC
Eric Levitt, City Manager