Tustin council authorizes offering for South Hangar, seeks Navy talks for Parcel 18

The Tustin City Council voted unanimously Tuesday to authorize staff to issue an offering for reuse of the city-owned South Hangar and to begin discussions with the U.S. Navy about Parcel 18, moving the Tustin Legacy project from outreach into a market‑testing phase.

Suzanne Bankhead, vice president of JPW Communications, presented a 15‑month engagement summary that she said increased community familiarity with the Tustin Legacy process and shifted public feedback from basic education toward detailed tradeoffs. "By spring 2026, more than 90% of our survey respondents reported feeling informed, or at least somewhat informed," Bankhead told the council. Her team reported 88% support for parks and open space, 67% support for community centers and 57% support for honoring the city's military history.

City real property staffer Jason Loya outlined the physical footprint and a range of cost scenarios for the hangars. He said the South Hangar sits on roughly 32 acres in the legacy core (the South Hangar itself is about six acres), and described three reuse scenarios: a baseline stabilization estimated at about $22,000,000 (to preserve structural integrity and limited uses), a rehabilitation scenario in excess of $200,000,000 for event‑based reuse, and a full adaptive‑reuse renovation estimated at about $271,000,000. Loya also said a Navy estimate for demolition of the upper portion is just above $55,000,000 and that keeping the status quo would cost the city roughly $13,700,000 over a 10‑year horizon for security and limited maintenance.

Mayor Lombard framed the decision as a necessary step to stop the hangars’ deterioration, saying, "The status quo is completely unacceptable." Councilmembers emphasized that the city does not have the capital needed for full rehabilitation and that staff must seek partners and more detailed proposals to assess feasibility. Councilmember Gallagher moved the staff recommendation and the motion passed on a 5–0 roll call.

Public commenters urged preservation and community uses: Pete Beatty and other veterans’ advocates called for honoring military history and education, while members of the public asked whether the current condition would allow swap meets or public events; staff and council confirmed the building is not safe for public events in its current state and that such uses would require a higher investment level.

Loya said the next steps are to authorize an offering memorandum, select a broker with relevant hangar/military‑reuse expertise, evaluate proposals, and return to the council with findings — potentially in early second quarter 2027 if authorizations proceed. The authorization request also directed staff to open a dialogue with the Navy about the broader Parcel 18 site as planning continues.

The council’s authorization does not commit the city to a specific project or expenditure; it authorizes staff to solicit market interest and report back with options, costs, and potential partners. The vote was 5–0 in favor.