NEWS - February 2005



El Toro Info Site report, February 28, 2005
Is AB 1197 El Toro's Trojan horse or NPB's nightmare?

OC Register, February 27, 2005
"El Toro's battle-weary"
"Those who waged war over the old base won't forget the airport that never was."

Daily Pilot, February 25, 2005
"Letter writer was foggy in her facts"

El Toro Info Site report, February 24, 2005
Remember the "fair share" concept?

El Toro Info Site report, February 23, 2005
SB 32 has company; AB 1197

El Toro Info Site report, February 23, 2005
Newport Beach should fear air capacity issue

Long Beach Press-Telegram, Editorial, February 20, 2005
"A park, not an airport"

OC Register, February 20, 2005
"El Toro's next steps"

El Toro Info Site report, February 19, 2005
What's left for OCX advocates?

OC Register editorial, February 18, 2005
"El Toro. It's over."

LA Times, February 18, 2005
"With El Toro Sold, What's Next?"

OC Register, February 17, 2005
"El Toro site goes to Florida-based Lennar, courtesy of $1.05 billion".

El Toro Info Site report, February 16, 2005
"GrtPark" is Standard Pacific

El Toro Info Site report, February 16, 2005
The auction is over. What happens next?

El Toro Info Site report, February 15, 2005
Auction goes another day

Inland Valley Daily Bulletin, February 14, 2005, posted February 15
"Yearlong [ONT] runway closure expected to make more noise"

El Toro Info Site report, February 14, 2005 - updated 3:25 PM
Back to the auction - Parcels 2 and 3 stay open

OC Register, February 13, 2005
Timing has been right on for Lennar

El Toro Info Site report, February 11, 2005
Let's take a weekend breather

OC Register, February 11, 2005
"Bidding heats up, extends El Toro auction"
"Offers for last two parcels at old base rise by $43 million; L.A. gets no takers on airport proposal."

El Toro Info Site report, February 10, 2005 - updated
Bidding continues - at least until Monday

El Toro Info Site report, February 10, 2005
Comments on the sale

El Toro Info Site report, February 9, 2005 - 3:02 PM
"Going once, going twice . . ."

El Toro Info Site report, February 9, 2005
Today's the day for some auction action

El Toro Info Site Report, February 8, 2005
Pro-El Toro delegation meets in Washington

El Toro Info Site report, February 7, 2005

Bidding resumes

El Toro Info Site Report, February 7, 2005
LAWA starts Palmdale Master Plan process

El Toro Info Site report, February 3, 2005
Hahn plans Washington plea for El Toro

OC Register Business, February 2, 2005
Air cargo: "High-flying sign of good times"

El Toro Info Site report, February 2, 2005
State legislators meet in Newport Beach

El Toro Info Site report, February 1, 2005
GSA: "This is a Call for Final Bids!"

Press-Enterprise, February 1, 2005
"Ontario airport leaves 9/11 behind; Passenger traffic rises as flight service falls

El Toro Info Site report, February 1, 2005
"A watched pot never boils"

Click here for last month's news stories


El Toro Info Site report, February 28, 2005
Is AB 1197 El Toro's Trojan horse or NPB's nightmare?

Mike Gordon's bill to create a Southern California Regional Aviation Commission says it applies only to "existing airports." Gordon is committed to blocking the expansion of LAX and strongly favors airport expansion in Orange County. So why not El Toro?

On May 13, 2002, after passage of Measure W, the Times quoted Gordon in: "Air War's Next Likely Target: John Wayne"

'If Orange County is going to opt out of El Toro, the immediate answer is John Wayne Airport,' said [then] El Segundo Mayor Mike Gordon.  'We're not going to let [Orange County's] demand wind itself back to LAX. We'll be doing everything we can with the FAA to make sure John Wayne Airport can expand.'

Given Gordon's stance, it is not surprising that AB1197 includes John Wayne under the proposed commission's responsibility to "facilitate the timely and efficient building of airport infrastructure."

It is less obvious why Gordon omitted El Toro - at least in this first draft - limiting the scope of his bill to "existing" airports included in the SCAG Regional Transportation Plan.

One explanation is that he is seeking early broad support for his bill, even approaching anti-El Toro assemblymembers. Gordon is an experienced coalition builder. For an informative look at his airport-related political tactics, see the Loyola Marymount University study "Structures Matter, but Leadership Matters More: The Practice of Politics in a Fragmented Region".

As initially drafted AB 1197 is only a placeholder and will morph into something else after committee hearings. We expect Chuck Smith, the AWG, OCRAA and the Coads to lobby Sacramento and again join forces with Los Angeles to argue the need for an airport at El Toro.

Gordon's regional airport commission is either a Trojan horse created to seize El Toro or Newport Beach's nightmare capable of expanding John Wayne. Either way, the OC Board of Supervisors should be concerned.

OC Register, February 27, 2005 - revised with comment from the Daily Pilot
"El Toro's battle-weary"
"Those who waged war over the old base won't forget the airport that never was."

"The battle for El Toro has raged for more than a decade; even with the sale of the 3,700-acre former base to a private developer under way, the battle's not over yet."

"Since the 1990s, the county has been divided into two camps: those who want a commercial airport and those who want anything but."

The Register "caught up with a few of the personalities who came to symbolize the county's divide."

The article provides brief glimpses of past and present views from the AWG's Tom Naughton who "is not convinced El Toro International is a dead idea" and Chuck Smith, who "has conceded defeat" but says "The whole Great Park scheme is phony . . . and a horrible waste."

Bruce Nestande is included as one who has switched his message.

On the anti-airport side, Meg Waters thinks: "If El Toro can survive this legislation session (which ends in September) without some airport authority seizing control of the land, then there will never be an airport there."

Others polled are Paul Eckles, executive director of ETRPA who won't "rest completely until the runways are torn up and houses are built" and the Len Kranser, Editor of this website who, like Eckles, feels "It'll be over when the other side gives up" and there is some substantial private development. "A bike path and a few soccer fields will not stop anyone from building an airport."

Click for the entire article.

Immediately following the Register piece posted on the Message Board is today's Editorial from the Daily Pilot, adding Donald Nyre and Shirley Conger to their list of the battle weary who " kept the faith and the dream alive, only to have it dashed pretty harshly with this week's auction-sale news."

"Alas, the El Toro airport wasn't to be . . . Make no mistake, the loss is substantial and costly."

"The planning for the proposed airport at El Toro came at a price tag of more than $50 million, $10 million of which was paid by the city of Newport Beach alone.  For their $10 million, the people of Newport Beach were left unfairly characterized as selfish NIMBY's and county bullies."

The Pilot laments that "the public will realize that it has lost a valuable commodity to more tract homes, more cars, more commerce and, especially, more demand for air travel that will need to be satiated."


Daily Pilot, February 25, 2005
"Letter writer was foggy in her facts"

The Pilot publishes two letters taking to task El Toro advocate Shirley Conger for her opinion piece.

Jaysen Gillespie warns, "El Toro advocates . . . shoot themselves in the foot by beating the drum of more airport capacity. Clearly, the easiest and most economical way to obtain more capacity is a simple removal of all restrictions on the use of John Wayne."

Representative Christopher Cox - a long time proponent of selling the base property - notes, "The property was sold for over $1 million per developable acre - was sold at market price at a very public auction - and contributed more to the federal Base Closure Fund than all of the land sales in four previous base closure rounds.  Taxpayers recouped more from this base closure than any in U.S. history."

Click for the full letters. . .

El Toro Info Site report, February 24, 2005
Remember the "fair share" concept?

Three years ago this week, Assemblyman George Nakano introduced a bill in Sacramento to pressure each county to provide its "fair share" of airport capacity. AB 2333 was amended several times and passed in both houses of the Legislature before being vetoed by then Governor Davis.

Nakano's bill did not designate El Toro as Orange County's only solution. Major expansion of John Wayne airport might have satisfied Nakano's "fair share" concept had it become law.

UC Irvine polling repeatedly showed that county residents prefer utilizing John Wayne as the county's one airport to operating two airports or closing John Wayne and moving all flights to El Toro.

The county explored two options for nearly doubling and tripling the capacity of JWA - in its 1999 EIR 573 Alternatives F and G. Expanding John Wayne may not be desirable but it is technically feasible.

Those from Newport Beach who want more local airport capacity should be careful what they wish for. See both of yesterday's news stories below.

El Toro Info Site report, February 23, 2005 - revised
SB 32 has company; AB 1197

Yesterday, Assemblyman Mike Gordon of El Segundo introduced AB 1197 for a "Southern California Regional Aviation Commission with responsibility for the development of strategies and policies to be employed by state and local governmental entities to facilitate the regional distribution of aviation services to existing airports throughout Southern California."

The measure as drafted would potentially impact John Wayne Airport but not El Toro. It states "The commission shall not develop strategies and policies or conduct analyses and make recommendations relative to the development of new airports in Southern California."

Bills often start out sounding benign and change as they are amended passing through committees. Some legislators think El Toro is an existing airport. Gordon is a long time well organized El Toro advocate. Watch out.

El Toro Info Site report, February 23, 2005
Newport Beach should fear air capacity issue

El Toro advocates, including many from Newport Beach, recklessly plead for more local airport capacity. Typically, Shirley Conger writes in the Pilot today, "We can expect a 50% shortfall in airport capacity by 2025 in the seven-county region."  They overlook that they are encouraging regional airport control. A state-mandated authority with power to build or expand airports might answer their prayers - by expanding John Wayne.

The following email from California State Senator Kevin Murray, Chairman of the Senate Transportation Committee, illustrates the thinking of some backers of a regional approach. Murray wrote this to one of our website viewers last year:

Maybe you should look in your own backyard as it relates to planning lapses.
 
I agree that it might make more sense to expand John Wayne.  John Wayne unfortunately has caps placed on it by the good citizens of Orange County which restrict the number of flights, the size of the aircraft and the hours of operation.  Considering the growth of population in Orange County, your wonderful planners have just decided to ignore the fact that people in Orange County might want to travel by plane.  This burden, you apparently believe, should be borne by others.
 
If Orange County would remove the caps on John Wayne to allow expansion as you yourself suggest, the need and interest in El Toro would decrease significantly.

Long Beach Press-Telegram, Editorial, February 20, 2005
"A park, not an airport"

"The last, small chance that the former El Toro Marine Station could become a commercial airport and relieve pressure on Long Beach and other regional airports vanished this week in an auction."

"The first to be broken up and disposed of at El Toro will be world-class runways that would make any pilot salivate."

"L.A. politicians are treating the sale as a scandal. They had their eye on those runways as a relief valve for the pressures building up at L.A. International Airport. In Long Beach, opponents of local airport expansion also hoped that El Toro as an international airport would reduce the likelihood that expansion would get out of hand."

"It's easy to see why the Navy accepted Orange County residents' opposition to changing the base into a major airport in their midst. But the rest of the region will bear part of the cost, in the form of overcrowded airports."

"Here's how the Navy can make amends: Sell off a modest portion of little-used land at the Camp Pendleton Marine Base for development of an international airport to serve the region's fastest-growing areas of south Orange County and north San Diego County."

"Then the residents of the Great Park area and others will have a major airport just as convenient as John Wayne, Ontario, L.A. International and, what's worse, Long Beach Airport. That would please voters in our part of the region."

OC Register, February 20, 2005 - updated
"El Toro's next steps"

Click here for previous timetable forecasts and the latest El Toro development timeline.

Fall 2005: Work begins to break up runways and install roads and utilities.

2006: Construction begins on Sports Park and wildlife corridor.

2007: Work begins on first phase of Meadows Park and on the first of 3,400 homes.

2008: Great Park grand opening.

2015: Last of the 3,400 homes to be built.

A companion story "Winning bidder alone at the top . . . Lennar so aggressively pursued El Toro, others might have been scared off" reports "Lennar said its winning bid of $649.5 million was close to the maximum it was willing to spend on the 3,719-acre El Toro base."

"As the auction opened, there were six registered bidders that were each required to make a $10 million deposit."

"Some observers said Lennar's commitment to acquire all four parcels, and the company's deep pockets, scared off other potential bidders."

"The county's biggest landowner, the Irvine Co., did not take part in the auction. However, an Irvine Co. spokesman, John Christensen, said the Irvine Co. is happy that the property went to Lennar." Click for both reports.

El Toro Info Site report, February 19, 2005
What's left for OCX advocates?

With the completion of the auction and the pending transfer of the El Toro property into Lennar and Irvine hands, airport advocates face shrinking hopes but have yet to raise a white flag.

Command and financing of the pro-El Toro movement has shifted from Newport Beach to Los Angeles and the emphasis has changed from protecting John Wayne to sparing LAX from expansion. Orange County participation seems to consist principally of former supervisors, the AWG and OCRAA tagging along with LA's show.

LA's last shot is expected in Sacramento in the form of legislation to establish a regional airport authority. The city has authorized marshaling its substantial legal and lobbying resources for the attempt. Such a bill probably could not take effect until 2006 but would be in place before any significant development occurs.

Lennar, Irvine, ETRPA and the County of Orange will not accept such interference without a fight.

OC Register editorial, February 18, 2005
"El Toro. It's over."

"We suspect that a couple of years from now, when new houses and businesses and parkland have been developed at the Great Park, the Los Angeles City Council will still be lobbying the federal government to turn the former El Toro Marine Corps Air Station into a major international airport."

"We're sure die-hard airport supporters will still be sending us letters to the editor echoing that sentiment. Some airport opponents will still be enrolled in self-help groups trying to fill that empty spot left by the end of the 12-year-long battle over El Toro." Website Editor: Is there really life after El Toro?

"We never loved the Great Park plan, dubbing it the Great Pork because of the large number of government facilities that will be created on the site. Nevertheless, we always argued for an auction of the land to the highest bidder, as did Rep. Chris Cox, R-Newport Beach. Despite objections from both sides of the airport debate, who argued that selling off the land to the private sector was impossible, that's exactly what happened."

Click for the entire editorial.

The writer overlooks how many of us from the anti-airport movement met with the Editorial Board to ask for their support for Measures F and W.  Our argument, which proved correct, was that the only possibility for selling the property was to overturn the county's plan for an airport on the site.


LA Times, February 18, 2005
"With El Toro Sold, What's Next?"

"With the for-sale sign removed at the former El Toro Marine base in Irvine, the new owner shifted its focus Thursday from development rights to last rites."

"Lennar Corp. took at least one small step Thursday. It reached an agreement with a cemetery developer to build a 74-acre resting place off Irvine Boulevard, as requested by Irvine officials."

"Unresolved is who will build and operate a 248-acre exposition center and 45 holes of golf, among other projects."

"Support for Lennar came Thursday from the Irvine Co., which owns the property around the base . . . 'We believe Lennar is a top-quality company with significant experience in Irvine and on the Irvine Ranch and that they'll do an excellent job,' spokesman John Christensen said."

"Among the nuts-and-bolts issues that come with purchasing the land, which Irvine has annexed, is figuring how to secure the facility, which has been guarded by the Orange County Sheriff's Department under contract with the Navy."

"Lennar officials already have decided to maintain month-to-month leases that a number of base tenants had for several years with the county and the Navy. They include the El Toro Equestrian Center, an 18-hole golf course, a storage site for recreational vehicles and a satellite campus of Cal State Fullerton housed in the former Air Wing headquarters building."

For more . . .

See also yesterday's related OC Register story "Much work still lies in store for base site’s top bidder" The Register's estimated timetable concludes "By fall 2005 - Work begins to break up the runways and build roads, utilities and other necessary amenities."


OC Register, February 17, 2005
"El Toro site goes to Florida-based Lennar, courtesy of $1.05 billion".

"Lennar Corp. will buy all of the former El Toro Marine base for just under $1.05 billion, building 3,400 homes there in the next 10 years."

"A six-week online auction closed Wednesday after the Miami-based home builder bid $649.5 million for four parcels. Also, the firm must pay about $400 million to the city of Irvine to help develop the future Great Park."

"Lennar officials estimate that they are paying $1.2 million per developable acre - 'a market price,' said regional President Emile Haddad."

"Haddad said the first homes could go on sale in two years, with project completion around 2015."

The LA Times writes, "The nation's third-largest home builder won an unprecedented federal auction Wednesday to buy the former El Toro Marine Corps Air Station in Irvine, setting the stage for 3,400 new homes in the heart of Orange County and dashing the last hopes for an international airport there."

" . . .Miami-based Lennar Corp. won the property in an online auction that the Defense Department has pledged to use as a model for the sale of future closed military bases. Previously, closed bases were transferred to local governments at little or no cost."

"The auction, however, does not resolve questions about how much it will cost the Navy to clean up parts of the base that are still off-limits because of contamination."

The Daily Pilot commented, "Opponents of plans for an airport at the closed El Toro Marine Air Corps Station likely heaved a collective sigh of relief Wednesday when the auction of the former base property finally closed for good."

Click here for full reports from the OC Business Journal, Register, Times, Irvine World News and Daily Pilot.


El Toro Info Site report, February 16, 2005
"GrtPark" is Standard Pacific

Pro-airport propagandists claimed on Internet message boards that the number two bidder in the El Toro auction was Los Angeles World Airports - disinformation that no one took seriously. They were proven wrong again when Standard Pacific Homes of Irvine took off its mask and acknowledged that it was bidder "GrtPark".

Standard Pacific Corp. is the nation’s 11th largest homebuilder, in terms of sales. The company's shares are traded on the New York Stock Exchange. They are the sort of major player that one would expect to see competing for El Toro. Good try.


El Toro Info Site report, February 16, 2005 3:05 PM
The auction is over. What happens next?

The historic El Toro auction closed this afternoon with Lennar Corp. bidding $649.5 million dollars for the four parcels. The money will go to the Navy for base cleanup at El Toro and elsewhere.

The successful auction marks a major milestone towards the non-aviation development of the former base. Airport proponents tried desperately but unsuccessfully to derail the sale.

The federal government is expected to accept Lennar's bids for the property and begin the escrow process. Final transfer of the property to the new owner will occur in 120 days from acceptance (mid-late June) and by no later than July 22.

Upon transfer of title, the land comes under Irvine's “Base Plan” zoning which authorizes principally park, open space and similar low intensity uses.

The new owner will be invited to sign an Irvine Development Agreement within 30 days thereafter in order to develop the property in accordance with the city's “Overlay Plan” that authorizes a mix of residential, commercial, industrial, recreational, institutional, park and open space uses. In return for the enhanced building entitlements, the Development Agreement requires the purchaser to transfer the majority of the land to the city for park-type purposes and to pay $400,000 for infrastructure costs.

Since the Development Agreement was prepared unilaterally by the city without input from the new landowner, it is likely that two-party negotiations will take place in order to modify certain of its provisions. Modifications are unlikely to change the overall character of the resultant land use.


El Toro Info Site report, February 15, 2005 - 3:05 PM
Auction goes another day

In the last hour of the afternoon, mystery bidder GrtPark raise the offers on parcels 2 and 3 by the minimum amount allowed, $500,000 on each. Lennar (Hrtfld) responded in each case with a $10 million increase.

The total bid for the four parcels adds to $649.5 million.

The auction will continue until at least 3:00 PM tomorrow.


Inland Valley Daily Bulletin, February 14, 2005, posted February 15
"Yearlong [ONT] runway closure expected to make more noise"

"Ontario International Airport is preparing to rebuild nearly two miles of its north runway, a $50-million project that will leave the airport with only one runway for a year."

"The noise-reduction program will be suspended for the same 12 months, starting in May, that the runway is to be closed for safety and coordination reasons." Kim Ellis, the airport's chief of operations said, "I expect the public to notice immediately."

"'The situation will not be dangerous.' Many airports, including San Diego International Airport-Lindbergh Field, which has twice as many passengers, operate with one runway, Ellis said."

Website Editor: In 2004, ONT served 6.9 million passengers. Los Angeles World Airports projects the two-runway facility to handle 30 million by 2030.

San Diego served 16.4 million passengers last year on its single runway and air traffic is still growing.

John Wayne Airport served 9.3 million travelers last year and, is capped at 10.3 million by agreement between the County and Newport Beach. In EIR 573, the County studied but rejected two scenarios - alternatives F and G - for  expanding the airport to either 14 or 25 million. At that time, county supervisors preferred building a new airport at El Toro. 


El Toro Info Site report, February 14, 2005 - updated 3:25 PM
Back to the auction - Parcels 2 and 3 stay open

At 7:11:50 AM this morning, mystery bidder OCHope - last heard from on Thursday - raised the offers on parcel 2 by a half million dollars. This produced the expected counteroffer from Lennar. Then shortly before 2 PM Grtpark raised the bar with a big jump of $11,500,000. Lennar countered with a big increase of its own to $300,000,000.

There also was action late today on parcel 3 which will now stay open for another day.

The total offered so far for all parcels is $628.5 million.

We have received a couple of questions on which parcels include the runways. The answer is that they are spread over 1, 2, and 3. Parcel 4 includes the required "crash zone" for the existing main runways. Click for a layout map.


OC Register, February 13, 2005
Timing has been right on for Lennar

Business columnist Jonathan Lansner provides a closer look at the leading bidder for the El Toro property.

When it entered the Orange County real estate market in 1995, Lennar was not "a private company reliant on one man's wealth and bankers' generosity. Rather Lennar was one of a new breed of publicly owned builders that relied on money from Wall Street."

"'Lennar then, as now, continues to prove that the senior management is among the smartest in the industry,' says Joe Davis, who was Coto's general manager under Chevron and today is Irvine Co.'s homebuilding chief. 'Lennar believed in the future opportunities for continued growth in the region,' Davis adds."

"El Toro demands another innovative vision of Orange County's future. The risks at El Toro multiply because Lennar must help create the new community's look and feel."

"Down the freeway, Lennar paid $215 million for land at the old Tustin base, where 2,000 homes will go. That project is nowhere as complex as the El Toro mission."

"But El Toro's challenges don't seem to bother Emile Haddad, [who runs Lennar's California operations from Aliso Viejo]. 'We love El Toro,' says the Mission Viejo resident."


El Toro Info Site report, February 11, 2005 - updated February 12
Let's take a weekend breather

After submitting bids early Friday morning, the bidders went silent for the rest of the day. Second place bidder "grtpark" placed their offer at 5:42 AM leaving us wondering if they too are an eastern-headquartered company, like Miami-based Lennar.

The bidders have the weekend to sharpen their pencils and decide whether to up the anti. If there are no additional bids by 3:00 PM Monday, Lennar ("Htgfld") will have the entire base for $604,500,000. There were none as of 8:15 AM Saturday.

That's a lot more money for the Navy than if they had conveyed the property at no cost for an airport as requested by the county before Measure W.


OC Register, February 11, 2005 - updated
"Bidding heats up, extends El Toro auction"
"Offers for last two parcels at old base rise by $43 million; L.A. gets no takers on airport proposal."

"Bids on the two remaining El Toro parcels rose by $43million Thursday, sending the auction to another day . . . Any bids received from midnight [Thursday] to 3 p.m. today will extend the auction to 3 p.m. Monday."

Website Editor: Several bids were received Friday morning on Parcels 2 and 3 and the auction will continue on Monday. The total bid as of 8:15 AM was $604.5 million for all parcels.

"Miami-based developer Lennar Corp. re-emerged late Thursday as the top bidder on parcels 2 and 3. Those areas will contain homes, offices, farms, a cemetery, a veterans memorial and parts of a wilderness area - all elements of the planned Great Park."

"Meanwhile, Los Angeles' effort to secure the 3,718-acre former Marine property for a commercial airport is fading."

"A spokeswoman for Los Angeles City Councilman Tony Cardenas said Thursday that Cardenas was disappointed that his recent trip to Washington, D.C., hasn't produced any tangible congressional efforts to persuade the Navy to lease the base to the city. Cardenas was leading Los Angeles' effort to convert El Toro into a commercial airport and relieve some of the pressure on Los Angeles International Airport."

"Los Angeles is offering to pay $300 million for environmental cleanup and $1 billion in rent on a 99-year lease."

Click for more . . .

Website Editor: By comparison, the amount bid by developers, if invested at current long-term rates on government bonds, would produce over $50 billion in compound interest during the same 99-year period.


El Toro Info Site report, February 10, 2005 -updated
Bidding continues - at least until Monday

Bidding continued past the close of business last night and resumed  today on parcels 2 and 3.

A bid from OCHOPE on parcel 2 at 2:53 PM  forced another $10 million raise from Lennar after the 3:00 PM close. Lennar (Hrtgfld) jumped their offers aggressively in increments of $10 million even though the minimum required raise was $1/2 million. The firm has said they want the entire base.

Parcel 3 will close tomorrow unless there is new activity.

As of 5:15 PM the aggregate amount bid for all parcels was $572,500,000.


El Toro Info Site report, February 10, 2005 - updated
Comments on the sale

Bidding closed on two of the four El Toro parcels yesterday. It will continue today on the remaining two parcels that comprise the largest part of the base.

The OC Register calculates "parcel one sold for $194,704 per developable acre; parcel 4, which will be the most intensely built, sold for $352,941 per developable acre."

The OC Business Journal quotes David Haase, realty officer for U.S. General Services Administration, which is handling the sale on behalf of the Navy: "We would have liked to have seen (the auction of parcels 1 and 4) gone on for several days."

The Times identified the high bidder on the two parcels as Miami-based Lennar Corp "one of the nation's largest home builders . . . [Lennar] will begin construction of 2,000 homes in the next two months" on the Tustin base property that it purchased in 2002. "Lennar also has projects at other closed bases, including Treasure Island Naval Station and Hunter's Point Naval Shipyard in San Francisco."

Nearly two years ago, the firm marketing Heritage Fields predicted, "Sale of the El Toro lands is expected to bring in about $800 million, based on sale prices at the Tustin base."

The 235 acres auctioned at the Tustin facility brought a total of $208,500,000 or an average of $887,000 per acre. However most of Tustin's 1,600 acres were transferred at no cost to public agencies producing no revenue for the Navy.


El Toro Info Site report, February 9, 2005 - 3:02 PM
"Going once, going twice . . ."

Prospective buyers waited to see who would blink first. Then someone upped the bids on parcels 2 and 3 shortly after 2 PM today.More bids came in the last half hour. The auction on those parcels will continue until 3:00 PM tomorrow, and then continue on subsequent working days until everyone has made their best and final offer.

Parcels 1 and 4 sold for the mimimum opening bids submitted by Hrtgfld.

We have updated our Watch List with the day's action.


El Toro Info Site report, February 9, 2005
Today's the day for some auction action

As today's 3:00 PM deadline approaches, additional purchasers are expected to bid on chunks of El Toro land. However, they won't all rush in just yet. Most will hold back till the last day, trying to avoid driving up prices. In the Tustin auction, some offers came in during the last two minutes before the close of business.

If there is even one bid on a parcel today, the auction for that lot will continue on Thursday, and day after day thereafter until the bids stop coming.

The OC Register reported yesterday "almost everyone expects it will extend for at least several days . . . A half-dozen companies registered and a couple of others are "scrambling to get their registrations completed."

Click here for this website's auction Watch List recording the progress of the sale. Thank you to bidder "Hrtgfld" for giving us something to look at each day.

The Register reports in "Last call nears in auction for El Toro" that developers hope to snag all four parcels to simplify their completion of the development.

El Toro Info Site Report, February 8, 2005 - updated February 9
Pro-El Toro delegation meets in Washington

A Los Angeles delegation seeking control of El Toro met with officials in Washington today at the Rayburn House Office Building. Mayor Hahn did not attend but sent representatives including lobbyists and key executives from Los Angeles World Airports.

LAWA does not intend to bid on the El Toro property, because they are bound by local zoning and instead want to keep the property in federal hands where local restrictions do not apply.

The delegation was to include Tom Naughton of the Newport Beach Airport Working Group and Leland Wilson from the Fullerton City Council. Wilson is Chairman of the Orange County Regional Airport Authority, OCRAA. Both of the OC insurgents recently appeared before the LA City Council to support Los Angeles efforts to override the will of OC voters. This time, Wilson did not show.

Wednesday's Times provides more details on the lobbying trip to Washington, originally reported here, including who they met. Click for "LA Seeks to Halt El Toro Land  Sales." 


El Toro Info Site report, February 7, 2005
Bidding resumes

Bidding resumed late this afternoon and is expected to become more active in the days ahead. One bidder now has offered the minimum on each of the four parcels. . . a total of $525 million.

Click here to check this website's auction Watch List.


El Toro Info Site Report, February 7, 2005
LAWA starts Palmdale Master Plan process

Los Angeles World Airports has issued a Notice of Preparation for a Master Plan at Palmdale airport.

"Since the passenger terminal opened in 1971, several airlines have operated out of the airport but service has been intermittent and no scheduled service is currently available. In anticipation of the need for future airport capacity to serve the Antelope Valley and the Southern California region, LAWA began land acquisition in 1970 next to Air Force Plant 42 with the intention of constructing and operating a new large commercial service airport when demand warranted. About 17,750 acres of property is currently owned by LAWA."

"LAWA has forecasted the demand for passenger service at PMD to be 1.14 MAP in 2030." This number is less than one-tenth of SCAG's forecast of up to 12.8 MAP at Palmdale in 2030.

In connection with the planning process, LAWA will develop a strategic plan to show how greater capacity can be developed at Palmdale.


El Toro Info Site report, February 3, 2005
Hahn plans Washington plea for El Toro

Los Angeles Mayor James Hahn is organizing a trip to Washington in a last ditch effort to stop the sale of El Toro. Apparently his reelection campaign strategy requires him to show resolve for voters near LAX. Politics prevents his taking "no" for an answer.

The Times - in an article titled "Mayoral candidates promising the world" - reports that "Next week, a delegation of city officials - including Councilman Tony Cardenas and Kim Day, executive director of Los Angeles World Airports- is scheduled to travel to Washington, D.C., to lobby" for Hahn's proposal to take over El Toro in order to "relieve congestion at Los Angeles International Airport."

Apparently, Hahn thinks that an imperialistic City of Los Angeles is entitled to colonize the region, setting up airports wherever it suits city politicians.


OC Register Business, February 2, 2005
Air cargo: "High-flying sign of good times"

"The success of companies such as Kingston [Technology] is helping fuel a huge jump in the amount of cargo carried on flights out of John Wayne Airport. Economists call it a sign of good economic times and point to Orange County's strong technology, medical and apparel sectors, whose customers want their goods ASAP."

"Through the end of November, cargo volume at John Wayne is up 30 percent compared with a year ago . . . The air-cargo business out of John Wayne is small. Movements up or down appear as large gyrations. However, the trend right now is clear. Cargo is headed up."

"FedEx and UPS, both traditional cargo carriers, serve the airport with two daily flights and haven't made any major changes in service. But data show they are carrying more cargo." Website Editor: The John Wayne Settlement Agreement allows up to four daily cargo flights.

"'Belly' cargo - what a passenger plane carries - fell . . . compared with the hauls made in 1999, a high point for belly cargo. Part of the drop was due to restrictions after 9/11, when passenger planes could not carry mail weighing more than 16 ounces.  American Airlines closed freight operations at John Wayne in 2002, pulling down the numbers."

"Most of the cargo . . .  goes out of Los Angeles International Airport, the sixth busiest cargo airport in the world. In 2003, LAX handled more than 2 million tons of cargo."

More . . .


El Toro Info Site report, February 2, 2005
State legislators meet in Newport Beach

Reportedly, the Democratic Caucus of the California Assembly met in Newport Beach this week. While the initial reaction was to be concerned, it may help any legislator who thinks Orange County needs an additional airport at El Toro to visit our still uncrowded John Wayne airport.       


El Toro Info Site report, February 1, 2005
GSA: "This is a Call for Final Bids!"

The Online Auction will close on February 9, 2005 at 3 P.M. Pacific Standard Time (PST).

In accordance with the Invitation for Bids (IFB) for Heritage Fields, the former Marine Corps Air Station El Toro, the U.S. General Services Administration (GSA), on behalf of the Department of the Navy, is calling for final bids on each of the four (4) parcels.

For each parcel, if no increased bid is posted as of 3:00 P.M. PST on February 9, 2005, then the online auction for that parcel will be closed and consideration will be given to selling the parcel to the high bidder. However, if an increased bid is received prior to 3:00 P.M. PST on the scheduled close date, then auction bidding will be continued over to the next business day at the same time for the parcel(s) that received an increased bid. This process will continue until a date upon which no increased bids are posted, wherein the bidding will close at 3:00 P.M. PST, on that day.

As the close of the auction is based on the bidding activity for each parcel, the auction may close on different days for each of the parcels.

Website Editor: We will be updated our Watch List as the auction heats up.


Press-Enterprise, February 1, 2005
"Ontario airport leaves 9/11 behind; Passenger traffic rises as flight service falls

"Ontario International Airport closed 2004 having almost fully recovered the passenger volume it lost when terrorism and recession took a bite out of air travel in 2001."

"More than 6.9 million passengers used the airport last year, the most in its history and almost 400,000 more than 2003. The growth came despite a lack of new flights and Hawaiian Airlines and Frontier Airlines ending service to Ontario International."

"Ontario has grown at a smaller rate than airport officials projected when the new terminals opened in 1997. By now, Ontario International Airport's two terminals were supposed to be bursting at the seams with passengers."

"Instead the airport is years away from needing another expansion . . .The airport needs to host at least 10 million passengers for two consecutive years before LAWA begins to consider another terminal."

Website Editor: With Palmdale still empty and Ontario "years away from needing expansion", what would LAWA plan to do at El Toro? Click for more of the Ontario story.

El Toro Info Site report, February 1, 2005
"A watched pot never boils"

Viewers of a certain age know this saying that comes from the pre-microwave era. The same is true of the El Toro auction.

Over 2,000 viewers checked in to this website on January 5 to see how the auction opened. Many more visited later in the month.

We have been updating a Watch List on the four parcels and as you know, it has been a slow start. Not to fear, consultants and the Navy are confident that once there is an announced deadline for bids, the pot will come to a full boil.

Click here for last month's news stories