NEWS - February 2005
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"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.
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.
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
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