SOURCE: Los Angeles World Airports

September 20, 2007 18:17 ET

Los Angeles World Airports Announces NASA Agreement to Lease Hangar at LA/Palmdale Regional Airport

PALMDALE, CA--(Marketwire - September 20, 2007) - The Los Angeles Board of Airport Commissioners approved a 20-year lease agreement with the National Aeronautics and Space Administration (NASA) for use of a high-bay hangar at LA/Palmdale Regional Airport (PMD). The move will initially bring five science platform aircraft with up to 150 highly skilled aerospace and technical jobs to Palmdale. In addition to these permanent jobs, a like number of visiting scientists from around the world will be working at the site at any given time. The move also provides a strong impetus for increased commercial activity at the airport.

The lease agreement is subject to final approval by the Los Angeles City council.

"I'm delighted to welcome NASA as a new tenant," said Bob Gluck, PMD Airport Manager. "We are extremely grateful for the tireless efforts of all the parties who worked to make this outcome possible."

Los Angeles World Airports (LAWA) staff has negotiated a 20-year lease with NASA for one of the five major buildings on the site. Under the terms of the proposed lease, NASA will lease Hangar 703 (422,000 square feet) and approximately 16.2 acres for use as a NASA aircraft operations facility to support various airborne science programs. NASA will invest over $6.5 million in various facility repairs and upgrades. Staff proposes that LAWA invest approximately $4 million primarily to re-roof the hangar and to install a new Central Utility Plant for the hangar. NASA will pay rent of $1,425,000 per year, adjusted annually at 3.5 percent.

"We are pleased with the way things turned out and are anxious to take occupancy," said Jerry C. McKee, NASA Dryden's Deputy Associate Director for Management and lead NASA negotiator for the lease. "There is still a tremendous amount of work ahead of us to make the facility ready to house our unique aircraft, the first of which will arrive in early November."

This agreement is part of an ongoing effort by LAWA, which owns and operates PMD, to actively market the airport and other nearby LAWA-owned property. The hangar, located on LAWA property known as Site 9, includes a 64,000-square-foot office complex; a 257,000-square-foot manufacturing facility; two high-bay hangars for a total of 684,000 square feet; and a 45,000-square-foot recreation center. The property also includes a recreation park and ball fields, tarmac, and current parking for 2,000 vehicles. The property is located at 30th Street East and Avenue P, adjacent to U.S. Air Force Plant 42.

"None of this would have been possible without the support of the cities of Los Angeles and Palmdale and Plant 42 officials," added McKee.

PMD is located on a 60-acre site at U.S. Air Force Plant 42. It is approximately 60 miles northeast of downtown Los Angeles off State Highway 14. LAWA owns 17,750 acres of land adjacent to Plant 42, most of which is available for development. PMD is one of four airports owned and operated by LAWA, a city of Los Angeles department that also owns and operates Los Angeles International, LA/Ontario International and Van Nuys airports.

Note: For a photo of Site 9, please respond to this e-mail or call (909) 208-1777.

Contact Information

    Harold Johnson
    (909) 208-1777

    Gus Schalkham
    (661) 276-3449

    Jerry McKee
    (661) 276-3245