ONTARIO INTERNATIONAL AIRPORT AUTHORITY AUTHORIZES GROUND LEASE

The Ontario International Airport Authority (OIAA) Commission has authorized a Development and Entitlement Agreement for a ground lease of nearly 198 acres of surplus property near the airport. The lease has a 55-year term and is expected to create an estimated $275 million in revenue for airport improvements during the initial ten years. The property was deemed unsuitable for typical airport use by the OIAA, thus making it surplus to the airport’s aviation and aeronautical needs.

According to the OIAA, the ground lease serves as the first of several major real estate transactions designed to monetize vacant property since Ontario International Airport was transferred to local control. The revenue generated from the lease will help the airport to fund safety, security, and infrastructure projects while maintaining low airport costs for the airlines. Rental revenue will start at $25 million during the first year and will increase in five-year increments. The agreement’s net present value is $625 million.