Santa Barbara Airport staff readies RFP to select long-term FBO tenant for northeast quadrant

Airport staff outlined a draft request for proposals and a multi-year timetable to select long-term FBO (fixed-base operator) tenants for the airports northeast quadrant, focusing initially on the east site. The presentation described parcel splits, lease complexities tied to fuel-farm agreements, minimum service standards, evaluation criteria and a proposed timeline for proposers.

Director Hastert said the 2017 master plan identified two FBO sites in the northwest corner of the field and that both current FBOs operate on short-term leases that do not permit large capital investments. The RFP will seek long-term tenants (potentially multi-decade leases) to justify capital improvements. Staff said the initial RFP will cover the east site (approximately 22.4 acres) with an option for an additional southern parcel; the west site will be handled in a subsequent selection to allow phased construction and mitigate tenant displacement.

Key constraints and topics staff highlighted: - Lease and fuel-farm term misalignment: current fuel-farm leases have different terms from the FBO leases and staff intends to combine fuel-farm rights into the master lease where possible. - Phasing and operations: staff emphasized phasing so an FBO can continue operations while constructing facilities; the west site contains many small T-hangars that could be displaced and will require careful sequencing. - Minimum standards and "nice-to-haves": the RFP will require a baseline of aeronautical services and fuel provision; proposals will be scored higher for additional hangars, business‑jet capacity, DEI plans and community benefits such as local jobs, environmental stewardship and plans for unleaded avgas or sustainable aviation fuel. - What staff cannot require: staff noted FAA restrictions and procurement rules limit the airports ability to dictate retail fuel pricing. - Timeline and response period: staff proposed a 90-day response period for proposers but commissioners suggested 45–60 days could be sufficient given a comprehensive information package; staff said a selection will likely take 2.5–3 years to reach construction start once leases are negotiated.

Commissioners emphasized the importance of the financial plan and feasibility, good access to Hollister Avenue for executive transport, community benefits that protect small piston GA, and planning for future fuels (electric/hydrogen/SAF). Staff said facilities condition reports and a comprehensive data packet will be provided to proposers, and that selection will include a scored process, a selection panel recommendation, and final approval by the City Council prior to lease execution.

Staff did not request a formal vote on the RFP at the meeting but asked for direction on weighting and timeline; commissioners provided feedback on prioritizing community benefits, development plan and financial feasibility.