Van Nuys Airport Leases Draw Fire From Council

With one month before Mayor Richard Riordan leaves office, his city Airport Commission has drawn protests from City Council members about plans for eleventh-hour approval of leases at Van Nuys Airport, some of which involve supporters of the mayor.

The Airport Commission is set to decide three leases on its agenda on June 26, just days before Riordan leaves office June 30.

A citizens advisory council that normally reviews leases was not scheduled to hold its next regular meeting until July, but Coby King, chairman of the panel, said he decided late Thursday to call a special meeting this month to review the leases in response to concerns raised by members.

King had questions about one proposed lease, for new aviation uses on 5.8 acres of vacant land next to the Airtel Plaza Hotel on Valjean Avenue.

“The lease is a particular concern because it’s a major parcel of prime undeveloped land at the airport next to the hotel, and there are concerns it will lead to a major expansion of jet operations and the process appears to be, if not rushed, substantially faster than may be prudent,” King said.

Jerry Perenchio, a longtime supporter and confidant of Riordan’s, has obtained documents necessary to bid. Perenchio declined comment through a spokeswoman.

A second proposal would award, without competitive bidding, a hangar lease to a firm partly owned by former junk bond dealer and Riordan-backer Michael Milken. The firm, MC Group, is a subtenant on the site.

“Neither Mike nor anyone from MC Group has asked the mayor to intervene in any way,” said Geoffrey Moore, a spokesman for Milken. “We have gone through the normal process and complied with all the city’s rules and regulations.”

Stacy Geere, an airport spokeswoman, said competitive bidding is not required when a current tenant is extending use of a site.

She and Jessica Copen, of the mayor’s office, denied that there is any attempt to fast-track projects for political purposes.

“There was no special rush,” Copen said. ‘The mayor had nothing to do with it.”

The actions are consistent with the airport board’s objective of efficiently using land, and no political motivations were involved, Geere said.

Councilwomen Cindy Miscikowski and Laura Chick, who both represent portions of Van Nuys, joined neighborhood leaders and business people Thursday in calling for delay on the 5.8-acre parcel on Valjean Avenue.

“It is absolutely absurd, for several reasons, to remotely consider giving approval to new leases at Van Nuys Airport at this time,” Chick said.

No action should be taken before a new mayor and council members take office in July, Chick said.

In a city where many leases take months or years to be put out to bid and be awarded, the Airport Department sent out the request for bids for the Valjean property on May 7 and required that bids be submitted on June 4. Those who obtained documents and may compete for the lease include Perenchio and James Dunn, the president and CEO for Airtel Plaza Hotel.

The unusually rapid pace has drawn written protests from two potential bidders, the Airtel Plaza Hotel and Van Nuys Flight Center.

Dunn demanded that the request for proposals be recalled, in part because it does not include protections for the adjacent hotel, and also because there is not enough time to prepare bids adequately.

Rick Voorhis, president of Van Nuys Flight Center Inc. objected that the minimum rents set by the bidding documents would effectively drive out piston aircraft businesses, as only jet businesses could afford to use the property.