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Council To Take Up Airport Contracts
By Jorge Casuso
June 22, 2023 -- The City Council on Tuesday is poised to approve contracts to upgrade the Santa Monica Airport runway and provide leasing services for commercial spaces on the 227-acre site.
Under a proposed $1,044,280 contract, WGJ Enterprises Inc., dba PCI, would rehabilitate the runway's pavement and markings to meet current FAA guidelines and planned airport operations, staff said in a report to the Council.
"The project consists of removing the rubber build-up from the runway, restriping all existing airside markings, replacing the existing joint sealant, if necessary, and updating pavement markings within the helipad area," staff wrote.
The construction would take approximately 21 calendar days to complete, including five nights when the runway would be closed.
Also on Tuesday, the Council is expected to extend a contract with Corporate Realty Group (CRG), which expires on August 31, to provide commercial real estate brokerage services for non-aviation properties at the Airport.
Under the proposed $767,447 five-year contract CRG would continue leasing properties "representing approximately 215,000 square feet of non-aviation uses and commercial office space," staff said.
The properties include creative space, educational classrooms, artist studios, commercial offices, event venues, shops, restaurants and a museum.
"Approximately 92 percent of Airport revenues are derived from leasing these properties," according to staff.
"There are certain facilities at the Airport that due to their size or complexity within the rental market require the expertise of a commercial real estate broker that can optimize marketing and negotiations to yield maximum revenues for the City," staff said.
CRG’s brokerage fees would be commission based and paid at a rate that is "less than other brokers’ comparable rates and are consistent with CRG's current rates," staff said.
"The City’s ability to optimize revenues from the Airport’s leasable space helps ensure the Airport Fund’s financial self-sufficiency and aligns with the City’s priority of Economic Recovery."
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