San Jose should accept an offer by a major airport operator to build
an $82 million private airport for executives of Google Inc. at
Mineta San Jose International Airport, a city official said.
Signature Aviation, a British firm, wants to construct an executive
terminal, hangars and ramp space "accommodating the largest business
jets" for Mountain View-based Google at the San Jose airport, William
Sherry, the city's director of aviation, wrote in a memo.
Currently Google leases hangar space from NASA Ames' on Moffett Field and and its subsidiary H211 pays NASA about $1.4 million a month.
A five-member evaluation panel of San Jose airport and
other officials has chosen Signature's plan, after giving it a rating of
991 out of a possible 1,000 points, over two other proposals deemed not
acceptable, Sherry wrote in the memo, which recommended that the city
select the offer.
Under its proposed 50-year lease with San Jose, Signature would build
the airport as a partner with Blue City Holdings San Jose LLC,
a company that represents the private jets owned by Google
executives, according to Sherry.
"Signature was found to be a financially stable company with strong
financial indicators and will likely be a significant economic asset for
the city of San Jose," Sherry wrote.
"The Signature proposal offers a strong likelihood of
creating construction and permanent jobs, revenues for the airport and
the (city's) General Fund, and providing high quality corporate aviation
services to the general aviation customer," he wrote.
San Jose airport officials intend to consult with Signature further
about the proposed pact, discuss it with the city's Community
and Economic Development Committee and Airport Commission next month and
prepare a plan for the City Council in the spring, Sherry wrote.
Signature's proposed development on the west side of the San
Jose airport would bring annual revenues of $2.6 million in rent,
$400,000 in fuel flow fees and $70,000 to $300,000 a year in new taxes
to the city, according to Sherry.
He wrote that the Signature plan would generate about 376 direct and
indirect jobs, plus 150 to 200 others during construction, and
would qualify for a gold LEED certification for green building
standards, Sherry said.
The proposed private airport would use 29 acres of the 44 acres
on Mineta San Jose International Airport's western side that the city
last year announced it wanted to lease for aviation-related development
and put out a request for proposals.
The firm would develop a 17,000-square-foot terminal,
a 33,000-square-foot building for offices and retail shops,
a 66,000-square-foot hangar, 18.5 acres for aircraft parking and a
300-space car parking lot.
Sherry said that Signature is the world's biggest operator of fixed
base airports and has private air facilities in 113 locations, including
San Francisco, Chicago O'Hare and Boston Logan international airports.
Source: http://losaltos.patch.com