Minutes from September 18, 2018 Open Board Meeting-Cargo Expansion at SBIA

  Tuesday, September 182018  

Open Board of Directors Meeting 

Norton Event Center
1601 E. Third St., Suite 138
San Bernardino, CA 92408



Present:   Patti Arlt, Deborah Barmack, Carole Beswick, Ann Bryan, Mike Burrows, Ken Coate, Jennifer Cusack, Kevin Dyerly, Adam Eventov, Otis Greer, Mark Kaenel, Lowell King, Bill Lemann, John Magness, Dan Murphy, Roman Nava, Keven Porter, Kevin Pulliam, Michael Rivera, Dan Roberts, Kristine Scott, Paul Shimoff and Steve von Rajcs   

Guests: Mark Gibbs, “Cat” Pritchett and Arnold San Miguel.  

Announcements: 1) Members were reminded to RSCVP for the Inland Action Reception that will be held on Wed., October 3, 2018 at the New York Grill in Ontario.  The new Exec. Director of the California Growth Council, Dr. Louise Bedsworth, will be the special guest.  Sponsorships are still available and are appreciated.  Rsvp to sharrison@www.lavahaze.com.  2) Staff met with Leticia White, Innovative Federal Strategies, last month when it was suggested our advocacy trip to D.C. should be earlier in the year.   Committee chairs will be asked to work on both federal and state issues at the same time and should plan to begin committee work as early as October.    

M/S/P: Minutes from September 11, 2018  

Steve von Rajcs introduced Mike Burrows, Executive Director, San Bernardino International Airport and IVDA and John Magness, Senior Vice President Market Leader – West Region, Hillwood.   

In the last 15 years, Hillwood Investments has served as the Master Developer at the former Norton Air Force Base. This public-private partnership with San Bernardino International Airport has brought over 14 million square feet of new development and contributed to the creation of over 11,575 direct jobs.   

The Norton Air Force Base property, rebranded as Alliance California, now has modern buildings, employment opportunities and has increased the tax base, all of which meet or exceed the originally stated goals from 2002.  The economic impact, over and above the normal taxes, to the City of San Bernardino total almost $25M and direct payment to the City’s schools are approx. $6.5M.   

The 2 newest tenants are Multiquip and Pacific Mountain Logistics.  Multiquip, leasing over 188,386-sf, is a manufacturer and supplier for light to medium construction equipment, power generators and lighting.  Pacific Mountain Logistics is focused on the Third-Party Logistics suite of services; Warehousing, Distribution, Transportation Management, Freight Brokerage and Value – Added Services.  They are housed in a 177,575-sf building. 

The San Bernardino International Airport (SBIA) is still very much a maintenance and repair facility but demand for cargo, has been and continues to be, a growing market with record volumes and expansions underway at all Inland airports.  The airport’s location, combined with newly-expanded state-of-the-art infrastructure, offers significant air cargo opportunities to the logistics industry.  FedEx was impressed and subsequently agreed to begin regularly scheduled air cargo flights into SBIA.  The daily flights are scheduled to begin in October and will occupy a 57,000-sq ft facility under a 10-year agreement.   

SBIA currently has an agreement with UPS for air and truck cargo that runs through 2020 and includes operating space and aircraft parking positions in the central portion of the airfield.  Since beginning with seasonal usage, UPS is now operating year-round with up to 8 flights daily and is expected to increase their daily flights to 26.   

The Hillwood and SBIA team’s latest chapter focuses on air cargo development, focused on the Eastgate Project – a new Air Cargo Logistics Center.  The project is consistent with the airport’s goal to increase aviation related revenue to help complete its base reuse mission and become self-sustaining.  The 101-acre site will have a 658,000-sf distribution center with 1,999 employee parking stalls, a 25,000-sf maintenance building, a 25,000-sf ground support equipment service building, aircraft parking/docking for 16 aircraft and two bridges that will provide site access across Third St.  Most of the zoning work has been completed but there are many challenges ahead including negotiations with Riverside regarding water rights, mitigation from the SCAQMD and NEPA review.  They are aggressively moving ahead and plan to open the facility in October of 2019.     

A Q & A period followed. 

Meeting adjourned 8:30 a.m.