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Tustin reviews hangar future after North Hanger fire as cleanup bills mount
Summary
City staff reported completion of on-site and neighborhood cleanup from the North Hanger fire but said substantial costs remain; the city has invoiced the Navy $104 million and has received about $80 million to date while weighing whether to harden, rehabilitate, or demolish the South Hangar.
City staff told the council that on-site and community cleanup after the North Hanger fire is complete and that regulatory agencies are now reviewing final reports.
"OCFA's investigation is closed," Ken (city staff) said, summarizing the fire-response status and the multiagency cleanup overseen since November 2023. He reported that the Navy issued an $18,000,000 contract to remove debris inside the hangar footprint and that the city had invoiced the Navy $104,000,000 for cleanup-related work; "to date, the Navy's paid us just shy of $80,000,000," he said.
City staff described a suite of interim measures the council approved after the fire — 24/7 on-site security, rented camera trailers, temporary power, lighting, fencing and modified egress — that now cost about $1–1.5 million a year to maintain. Staff presented two budgeting paths: continue renting security and temporary systems (estimated at roughly $10 million over six to seven years) or fund a one-time investment of $5.5–$6.0 million for permanent protective installations that would lower ongoing rental costs but would not increase the building's usable interior capacity.
Staff also summarized historical estimates for full rehabilitation and for demolition. The city's 2017 structural/reuse analysis put full-occupancy rehabilitation of the South Hanger in the "$100,000,000 plus" range (2017 dollars). Council members noted an unconfirmed demolition cost range, which staff estimated at roughly $20–$40 million based on comparable hangar work elsewhere.
The city emphasized that the Navy controls the north-hangar parcel and that some legacy property remains under federal custody; land transfers and remediation schedules are controlled by federal environmental obligations and agency budgets. Staff said the council has directed reuse planning for the north-hangar parcel and will present community options for the 85–87 acre north site.
What happens next: staff said they are completing technical reports and awaiting agency signoffs before proposing any long-term strategy. The city will continue a public conversation about whether to invest in permanent property-protection measures, pursue a rehabilitation that would expand long-term usability, or consider demolition and alternate uses. The council did not take a formal vote; the presentations were received as informational.
