Airport Board OKs $126.5M for Parking Lot
From staff reports
June 22, 2009
The Board of Airport Commissioners on Monday agreed to spend $126.5 million to buy a 20-acre parking lot adjacent to Los Angeles International Airport, but the City Council is expected to debate the purchase over the next several weeks.
Two appraisals in February valued the Park 'N Fly at Park One lot for as low as $108 million and as high as $120 million. The parking lot, located just east of Terminal 1, has been up for sale at least two other times over the Past 20 years, but Los Angeles World Airports passed up on the purchase each time. Airport officials said they hope to close the deal by the end of July.
"This has been a long and difficult negotiation," commission President Alan Rothenberg said. "LAWA did not have the foresight to grab it the last time it was up for sale. So I'm glad we were able to strike when it was on the market this time."
Airport officials said the price reflects the property's current value as a parking lot, even though San Francisco-based AMB Properties had tried to sell it at a higher price.
Los Angeles City Councilwoman Janice Hahn said she had hoped for a better deal, considering the national real estate downturn.
"It seems like a lot of money, but hopefully the airport will make a case for why this parking lot is so valuable," said Hahn, who chairs the council committee that oversees LAX.
LAWA is expected to collect $8.2 million in rent from Park 'N Fly in the next fiscal year. The parking lot operator's lease is set to expire at the end of 2012.