HomeMy WebLinkAbout08 - John Wayne Airport AgreementSeptember 13, 1999
Agenda Item No. 8
CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
September 13, 1999
TO:. Mayor and Members of the City Council
FROM: Robert H. Burnham, City Attorney
RE: Amendment to the John Wayne Airport Settlement Agreement Approving
an Increase In Leaseable Space
Background:
In March of 1999, John Wayne Airport staff made a presentation to the City's Aviation
Committee and requested a modification to the JWA Settlement Agreement to permit an
increase in the leaseable area in the terminal. The current Agreement establishes a
maximum of 271,000 square feet of interior floor space that can be leased to tenants or used
as common areas for public use and access. The request is in response to a study prepared
by consultants that concluded passengers at JWA are not adequately served by the current
concession operations.
The County is asking approval to add 20,296 square feet of interior floor area. The additional
area requires the construction of a mezzanine, new floor areas above the arrival area, and a
cantilever section in the middle of the terminal on the ramp side. JWA would use about
4,500 square feet of the additional area for airline ticket operations and with the remainder for
new concessions. The terminal footprint would not change and the additional space would
not increase the demand for service or the capacity of the airport.
The City's Aviation Committee appointed a Sub - Committee that reviewed the request in
detail with JWA staff. Both the Sub - Committee and the full Aviation Committee recommends
that the City Council approve the request to expand leaseable space at JWA.
Correspondence from JWA staff describing the request, proposed terminal improvement
plans and the required modification to the Settlement Agreement are attached as exhibits.
Recommendation:
We recommend that the City Council approve the request to increase leaseable space at
JWA and direct the Mayor, on behalf of City Council, to execute the Fourth Supplemental
Stipulation modifying the JWA Settlement Ag5prnent.
Attachments Robe . Burnham. City Attorney
F:tu sersUoftharedlCCmemoU WAagt4thMod.dx
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N April 16, 1999 CORRECTED COPY
Loan Leblow Mr. Bob Burnham, City Attorney R E G F- i � � i— ,-.,
Interim City of Newport Beach
Airport Director 3300 Newport Boulevard
PO Box 1768 APR 1 " 1999
Newport Beach, CA 92658 cart
CITY CIF NE'WP(,, ; I 13EACH
Re: Aviation Committee Sub - Committee Meeting
JWA's request to increase leaseable area within the terminal building
John Wayne Airport met with the Aviation Committee at their meeting of March 15,
1999 to make a presentation regarding their interest in modifying the Settlement
Agreement to increase the leaseable area within the terminal building. The current
Settlement Agreement limits the terminal building to a maximum size of 337,900
square feet. It also sets a maximum of 271,000 square feet of interior floor space
which is leaseable to tenants and or common areas available for public use and access.
The remaining 66,900 square feet is dedicated to airport administrative offices,
mechanical /electrical areas and structural areas.
Our request presented at the March 15 meeting was to add 20,296 square feet of new
terminal building space by adding space to the mezzanine, building new floor areas
over open space above the arrival level (adjacent to the restaurant), and add terminal
overhang area over the ramp. Our plan also includes reallocation of leasable areas
between common area and concession space. The overall result would be a total
terminal area of 358,196 square feet with a maximum leasable area of 291,296 square
feet. The attached Exhibit A shows the proposed new terminal areas.
The Settlement Agreement does not address how much of the leaseable area may be
used for concession space vs. airline ticket office or ticket counter space. However,
this reallocation will utilize approximately 4,466 square feet for back ticket office and
ticket counter space currently devoted to common areas and passenger screening.
The aviation committee raised three questions regarding the above request and asked
316t1A1nvayAvenue that they be responded to in writing prior to the next meeting of the aviation sub-
committee.
Costa Mesa
CaUbmia Q: How much is concession space and how much is airline space under current
92626 and proposed lease space?
Tel: 949/252 -5171 A: Current - Concession space is 21,820 square feet*
fax:949 /251 -5178 Airline space is 35,581 square feet
Clubroom space is 7,874 square feet
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GATZHE,DI
Michael Scott Gatzke ( #57076)
Lori D. Ballance (#133469)
Gatzke, Dillon & BBallance
1921 Palomar Oaks Way, Suite 200
Carlsbad California 92008
(760) 431 -9501
Attorneys for the County of Orange
Robert H. Burnham ( #44926)
lof Attorney C Newport Beach
3 Newport Blvd.
P.O. Box 1768
Ne ort Beach, California 92664 -3884
(949)644 -3131
Attorneys for the City of Newport Beach
- SALLACII;E
*J uu4
Barbara E. Lichman ( #138469)
Chevalier, Allen & Lichman
2603 Main Street, Suite 1000
Irvine, California 92614
(949) 474 -6967
Attorneys for SPON and Airport
Working Group of Orange County
Inc.
DRAFT
UNITED STATES DISTRICT COURT
for the
CENTRAL DISTRICT OF CALIFORNIA
COUNTY OF ORANGE,
Plaintiff,
v.
AIR CALIFORNIA, et al.,
Defendants.
CITY OF NEWPORT BEACH,
Counterclaimant,
V.
COUNTY OF ORANGE; ORANGE
COUNTY BOARD OF SUPERVISORS;
and DOES 1 through 1,000, Inclusive,
Counterdefendants.
No. CV 85 -1542 TJH (Mcx)
FOURTH SUPPLEMENTAL
CITY OF
SPON
A MODIFICATION OF AN
EXECUTORY JUDGMENT OF
THE COURT
AND
(PROPOSED ORDER)
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The County of Orange, California ( "the County"), which is the certificated
proprietor of John Wayne Airport, Orange County (SNA) ( "JWA "), the City of Newport
Beach, California ( "the City"), Stop Polluting Our Newport ( "SPON "), and the Airport
Working Group of Orange County, Inc. ( "AWG "), by their respective counsel, enter into
the following stipulation:
RECITALS
1. On December 15, 1985, this United States District Court entered a final
judgment ( "the confirming judgment ") in this action as between the County, the City,
SPON, and AWG (collectively, "the settling parties ") based upon a stipulation executed
by their respective counsel and submitted to the Court in November 1985 ( "the 1985
Stipulation ").
2. In addition to the settling parties, the Federal Aviation Administration
( "FAA "), and various other parties, including various certificated commercial airlines,
were also parties to this action. By a series of stipulations and a confirming order of this
Court entered in 1986, the remaining claims and issues in the action were dismissed,
without prejudice.
3. The 1985 Stipulation and the confirming judgment (which incorporated the
terms of the 1985 Stipulation) contained certain provisions that are executory and binding
upon, among others, the County, from the date of the Court's entry of the confirming
judgment through December 31, 2005.
I ADJUSTMENTS TO LEASABLE AND PUBLIC AREA AT JWA
4. Subject to specific limitations and conditions as defined in the Phase 2
Commercial Airline Access Plan and Regulation ( "Access Plan "), the parties to this
Stipulation have agreed to allow the County to amend the 1985 Stipulation and the
confirming judgment in order to make certain minor adjustments to the interior floor space
restrictions and the total terminal size restrictions as those terms are defined in the 1985
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oiiaaiay atu 1 {: {1 FAX 760 4010128 GATZXE.DILLON & BALLANCE
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Stipulation and the confirming judgment. These minor adjustments will modify the total
terminal size restrictions from the existing 337,900 square feet to 358,196 square feet and
modify the maximum interior floor space restrictions from the existing 271,000 square feet
to 291,296 square feet. These minor modifications to the existing restrictions are primarily
required in connection with a modification of JWA's concession program at the terminal.
It is neither the objective nor the intent of any of the parties to this Stipulation to utilize
this additional terminal area or interior floor space in order to increase the number of gates
at JWA or increase the operational capacity at JWA beyond that contemplated by the
parties at the time of execution of the 1985 Stipulation. In addition, no modifications to
the ground footprint of the terminal building at JWA will be made in connection with these
minor square footage modifications.
IN LIGHT OF THESE CIRCUMSTANCES AND RECITALS,
I THE PARTIES TO THIS STIPULATION AGREE AS FOLLOWS.
AGREEMENT
Subject to the approval of the Court:
5. Paragraph 31, Page H, , Line 2 of the 1985 Stipulation shall be modified to
substitute the value 211,000 square feet with the value 291,296 square feet and Paragraph
31, Page 11, Line 8 shall be modified to substitute the value 337,900 square feet with
the value 358,196 square feet. This additional total terminal area and interior floor space
shall not modify the ground footprint of the terminal building at JWA or increase the
number of gates or operational capacity at JWA as agreed to by the 1985 Stipulation and
confirming judgment.
6. This agreement is subject to the following limitations: (a) Provisions of the
11985 Stipulation and the confirming judgment, other than those provisions directly related
to additional total terminal area and interior floor space at JWA shall continue to remain
in effect and enforceable by the stipulating parties; and (b) nothing in this stipulation
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obligates any of the settling parties to enter into or agree to any further stipulations
modifying the 1985 Stipulation, or the confirming judgment.
Michael Scott Gatzke
Gatzke, Dillon & Ballance
Attorneys for the County of Orange
Dated:
Dated:
I Dated:
By:
Michael colt Qatzke
Robert H. Burnham
City Attorney of Newport Beach
Attorneys for the City of Newport Beach
Barbara E. Lichman
Chevalier, Allen & Lichman
Attorneys for Stop Polluting Our Newport and
the Airport Working Group of Orange County,
Inc.
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obligates any of the settling parties to enter into or agree to any further stipulations
modifying the 1985 Stipulation, or the confirming judgment.
Michael Scott Gatzke
Gatzke, Dillon & Ballance
Attorneys for the County of Orange
Dated:
Dated:
I Dated:
By:
Michael colt Qatzke
Robert H. Burnham
City Attorney of Newport Beach
Attorneys for the City of Newport Beach
Barbara E. Lichman
Chevalier, Allen & Lichman
Attorneys for Stop Polluting Our Newport and
the Airport Working Group of Orange County,
Inc.
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ORDER
By the stipulation of parties, IT IS SO ORDERED•
)ated: 1999
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United States Distnct Judge
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