Minutes from April 25, 2017 Open Board Meeting-Renaissance Rialto

Tuesday, April 25, 2017

 Open Board of Directors Meeting

 San Bernardino Community College District
114 S. Del Rosa Drive
San Bernardino, CA 92408



Present: Deborah Barmack, Peter Barmack, Mike Burrows, Rachelle Bussell, Ken Coate, Jennifer Cusack, Mark Kaenel, Lowell King, John Magness, John Mirau, Roman Nava, Cid Pinedo, Michael Rivera, Kristine Scott, Paul Shimoff and Ray Wolfe.

Guests: Adam Eventov and Todd Warden

Announcements: 1) The annual trip to Sacramento is scheduled for Tuesday, May 16th with the option of arriving on Monday, May 15th for some possible afternoon meetings.  Please submit your reservation as soon as possible.

M/S/P: Minutes from April 18, 2017.

John Mirau introduced Mike Burrows, San Bernardino International Airport Authority and John Magness, Hillwood Investments.


Developer’s plans for Renaissance Rialto were to transform the relatively quiet Rialto Municipal Airport into a multi-functional property providing employment, recreation, entertainment and housing.


The long and arduous process of closing Rialto Airport located between Baseline Road and the 210 Freeway off Alder Rd. has been in the works since 2004.  The City of Rialto approved the sale, and with the assistance of Congressman Jerry Lewis, the authorization was granted in the 2005 Federal Transportation Bill.  The strict terms of the closure keep the money in the area by stipulating that 45% of the current fair market value of the property be used for eligible projects at an airport within close geographical limits. San Bernardino International Airport Authority (SBIAA) received many improvements as a result.  They also worked with the Federal Aviation Administration (FAA) for the past 6 years to obtain approval.


Relocation of the 180 tenant’s at Rialto Airport totaled $30m and was at the cost of developers Hillwood Investments and Lewis Community Developers. The tenants relocated to five different airports in two states with the last tenant moving out in 2015.  Demolition and environmental mediation on the property has cost $10m and on-going new infrastructure has added $60m.  Serious complications to the project included the Great Recession from 2008-2011 which stalled the original residential plans, as well as the State’s dissolution of redevelopment agencies in 2011.  Additionally the retailer Target, who had committed to be the anchor retailer for the new Renaissance Marketplace, canceled their commitment after their credit/debit card data breech in December 2014.  The City of Rialto relies heavily on sales tax and, without this known brand name, major concerns for a stable retail element were expressed.


Today the developers have sold 550,000 sq. ft. of warehouse space to Niagara Water and 1.1m sq. ft. to Medline. Amazon has leased 880,000 sq. ft. for another distribution center here in the Inland Empire.


Opening in 2018 the Renaissance Market place will have Cinemark, a multi-screen movie theater that will serve as its anchor. The Cinemark brand has brought a good deal of interest for the surrounding retail opportunities that total more than 60 acres.  In addition to entertainment and retail the Marketplace plans include office, hotel space and 1,300 residential new homes.


Transparency of incoming and outgoing funding was a critical part of the complex and specific escrow for the Rialto closing. Funds from Rialto’s sale received by SBIAA provided for building the new hanger needed for the San Bernardino Sheriff’s Department (completed in October 2016).  The Sheriff’s Department helicopters supply key services: search & rescue, contracts with the DEA and assist both law enforcement and firefighting. Their eight acre campus is now fully occupied.


SBIAA has weathered a long and trying time since Norton AFB closure. They have, however, survived by providing a blend of services in aircraft maintenance.  The six full scale maintenance repair overhaul services (MRO’S), parts component and aviation painting are the back bone, as are fuel sales.  The cargo element from UPS and Amazon is increasing.  Passenger service will also be a part of their future but they plan to gauge what is needed in the market and maintain a diverse profile.


Soon SBIAA will be home to a commercial pilot training school. A Florida based company plans to open their first west coast school there in the fall of this year.  The general aviation field is growing and facilities are in demand.  SBIAA will open thirty new general aviation hangars this summer (26 of them already pre-subscribed) expanding the hangers from 1,190 sq. ft. to 7,500 sq. ft.   They are focusing on their customers and stressing friendly services for all levels of aircraft, be it a Cessna or a G650.  The re-branding of the fixed base operation to Luxivair has been a success and has grown significantly due to the team effort by SBIAA, and the operator.


A Q & A period followed.

Meeting adjourned at 8:31 a.m.