Leasehold Examples

EXHIBIT

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Below are a few examples of specific situations where airports that were acquired by the government

through leases along with a sample listing of other airports/sites acquired through leases.

Barstow-Daggett Municipal, California (DAG)

Daggett Airport is located near the City of Barstow, California. After receiving interest and funding

from the CAA, just prior to World War II, the County (San Bernardino) acquired fee interest to

additional land necessary for War Department use.

On May 4, 1942 the federal government entered into an agreement with San Bernardino County to lease

1,099-acres site and operate it as a Modification Center. The initial term ofthis lease ended 30 June

1944, but the lease contained a provision for annual renewal, at the option of the government, through

30 June 1967. The total cost of government improvements during the War was $3,924,273, with the

CAA expending an additional $107,235 for various improvements.

In any event, the facility was deactivated in 1944. The site (all 1,099 acres) was classified as surplus on

15 November 1945. The Declaration of Surplus Real Property Form (SPB 5, dated 28 March 1946),

notes that the improvements were in good condition and that custody and accountability for the site was

assumed by the War Assets Administration (WAA) on 27 June 1946, with the installation immediately

transferred to the Navy Department.

Eventually, the County obtained control ofthe facility from the military in 1958 when the government

conveyed the airport to San Bernardino County to be used as the County airport.' Today, the airport has

a 5,100-foot runway, about 60 based aircraft and over 36,000 operations." The airport is classified as a

"P" property meaning that it was conveyed as a standard Surplus Property Conveyance under P. L. 80-

289, including all ofthe applicable restrictions.

King City Airport, Washington (KIC)

In 1940-1941, the King City Airport was built on a 249-acre tract owned by a private entity. The

property was leased to the City which in tum subleased the property to a flight school engaged in

training cadets for the Army. In October 1941, the City passed a $16,000 bond issue, bought the

property, and renewed the flying school's lease. In the spring of 1945, the Navy leased the airport and

commissioned it as a Naval Auxiliary Air Station on April 6, 1945.

On September 15,1945, the Navy placed the station on caretaker status and on December 15,1945,

returned the airfield to the City.:' Today, the airport is the King City municipal airport and is classified

as a "P" property meaning that it was conveyed as a standard Surplus Property Conveyance under P. L.

80-289, including all of the applicable restrictions." The airport is owned by Monterey County, has a

4,500-foot runway, about 30 based aircraft and over 3,500 operations.'

I http://www.militarymuseum.org/DaggettAirport.html

2 http://www.gerl.eol1v5010web/airport.cfm?Site=DAG

3 http://www.militarymuseum. org/N AASKingCity.html

-I FAA Order 5190.2R.

5 http://www.gerl.eol1v5010web/REPORTS/AFDOl182007DRI.pdf
Santa Barbara, California (SBA)

In 1940, the CAA proposed improving the Santa Barbara airport and the City floated a $149,000 bond to

purchase 568 acres. Construction activity began during 1941 and the CAA spent approximately $1

million on a project to develop three runways. Following the U. S. entry into the war, the Army

stationed P-40 interceptors and twin-engine antisubmarine aircraft at the airport as well as adding

revetments. The Navy subsequently selected the Airport for a Marine Corps Air Station. A lease

agreement was reached with the City in February 1942. The price of the lease was $2,600 per year.

On December 4, 1942, MCAS Santa Barbara was officially commissioned and comprised of 568 leased

and 900-owned acres. The total investment at Santa Barbara reached nearly $10 million. Following the

war, the Marines contemplated making Santa Barbara a permanent installation; however the City

resisted this proposal, since the facility was needed for a municipal airport - no other land in the area

was suitable. The station went on caretaker status on March 1, 1946, and was released to the War Assets

Administration for disposal two months." Today, the airport is owned by Santa Barbara County, has a

6,000-foot runway, about 190 based aircraft and over 211,000 annual operations? Today, the airport is a

"P" property meaning that it was conveyed as a standard Surplus Property Conveyance under P. L. 80-

289, including all of the applicable restrictions.f

In addition to Stuart and the three examples discussed here in detail, below is a sample listing of 46

other former Navy and Army facilities that included leasehold interests. The total sample of 50 (46 + 4)

was derived form the review of about 100 sample airports. As a result, it was originally estimated that of

the approximate 1,000 surplus property facilities conveyed after the War for airport purposes,

approximately 50% or 500 airports, included leasehold interest in one form or another.

However, since the actual number of such facilities has dwindled to about 661, the estimated number of

airports that have underlying leasehold interests was reduced form 500 to about 300 in order to provide a

realistic estimate.

(> http://www.militarymuseum.org/MCASSantaBarbara.htm]

7 http://www.gcrl.com/5010web/airport.cfm?Site=SBA

8 FAA Order 5190.2R.
Other Airports/Army Air Fields/NAS that Include Leasehold Interests

Facility State Type/Details of Lease Ultimate Use

NAAS Arcata CA 442 acresleased Arcata Eureka Airport

BradleyAAF CT 21,000 acres on a 25 yearlease Bradley International

NAS Astoria OR $1 lease Coast Guard facility

NAAS Chase Field TX 456 acres under l$lease Not disposed as airport

NAAF Conroe TX 1,227 acresleased Not disposed as airport

NAS Dallas TX $1 lease dating back to 1920s NAS Dallas ORB)

NAAF Durant OK Lease Eaker Field

NAAS Fallon NV 2,500-acreCAA Lease NAS Fallon

NAS Klamath Falls OR Lease Klamath Falls Airport

NAAF Lakeview OR Lease Lake County Airport

NAAF Lompoc CA 65 acreslease Lompoc Airport

NAS Minneapolis MN $1 lease Minneapolis/St. Paul Int.

NAAS Monterey CA 455 acres for $1 lease Monterey Peninsula

NAS Norman OK Over 1,000 acres for $1 U. of OK- Westheimer

Naples AAF FL Lease Naples Municipal Airport

NAAS OR 618 lease Southwest Oregon Regional

NAS Ottumwa IA Lease Ottumwa Industrial

NAS Shawnee OK 361 acreslease Shawnee Municipal

NAAS Watsonville CA 288 acreslease Watsonville Municipal

MCAS Cherry Point NC Lease MCAS Cherry Point

Beaufort OLF NC Lease MichaelJ. Smith Field

New Bern NC Lease Simmons-Knott

Greenville OLF NC Lease Pitt-Greenville

Wilson OLF NC 758 acreslease Wilson Air Center

MCAS El Centro CA Lease MCAS El Centro

MCAAF Kinston NC $1 lease Northeastern Regional

Page AAF FL 618 acre lease Page Field

Laurinburg-Maxton AAF NC 4,644 acre lease Laurinburg-Maxton Airport

WilliamsAAF AZ 2,610 acres lease WilliamsGateway

Columbus AAF MS 4,268 acres 99-yearlease Columbus AFB

Baer AAF IN 700 acre $1 lease Ft. Wayne Int. Airport

Stout AAF IN 259 acres $1 lease Not disposed as civil airport

Smyrna AAF TN $1 lease - renewable 25 y SmyrnaAirport

Chanute AAF IL 2,000 acre with a lease Rantoul Nat. Av. Ctr Airport

Ephrata AAF WA 2,560 acres with a lease Ephrata Municipal

Buckingham AAF FL 65,000 acres with a lease Not disposed as civil airport

San Angelo AAF TX 00 acres $1 lease renewable through 1( Mathis Field

Hutchinson OLF KS $1 lease Hutchinson Airport

CraigAAF AL 1,900acres $1 lease Craig Field

Sarasota AAF FL Lease Sarasota-Bradenton

NAS Deland FL Lease Deland Airport

NAAS Green Cove FL Lease Not disposed as civilairport

Springs

NAS Lake City

NAS Vero Beach

Everett AAF

Santa Monica

New Orleans Lakefront

FL

FL

WA

CA

LA

Not disposed as civil airport

Vero Beach Airport Muni.

Paine Field

Santa Monica Municipal

Lakefront Airport

Lease

Lease

Lease

Lease for 168 acres

263-acreLease