Pact Clears Way For Long-Time Tenant To Extend Presence And Remain At ONT For A Half-Century

The Ontario International Airport Authority (OIAA) have approved a lease agreement with FedEx Express to solidify the company's presence and continue operations at Ontario International Airport (ONT) for at least three more decades.

Under terms of the initial 30-year lease, FedEx Express, a subsidiary of FedEx Corp. and the world's largest express transportation company, will relocate its operations to a 51.1-acre site located in the northwest quadrant of ONT from its current location. It is anticipated the move will occur in late 2020 when site preparations have been completed.

Alan D. Wapner, president of the OIAA, said the new FedEx agreement comes at an important time for ONT, which has experienced increases in cargo volumes of up to 20% a month.

"The transfer of ONT to local control in 2016 has enabled us to transform the airport into an economic engine for the Inland Empire," Wapner said. "In addition to adding exciting new domestic and international airline service, we have made strong steady gains in cargo operations, which bodes well for the airport's economic development potential."

"That FedEx is making such a sizable commitment to Ontario for the next 30 years or longer is a testament to what we are doing to make ONT an attractive hub for shipping companies," Wapner added.

FedEx Express will invest nearly $100 million to revitalize aircraft parking apron areas; consolidate and construct a sorting facility, ground support staging area, secondary and maintenance buildings; enhance perimeter fencing; and install landscaping. The improvements are anticipated to be completed by November 30, 2020.

The OIAA will clear the northwest site by removing existing structures above and below ground and performing surface grading. The OIAA will also coordinate the environmental analysis and assessments (including for soil conditions), and any necessary removal and management. Efforts will be made to complete OIAA's site preparations by January 31, 2019.

FedEx Express has operated at ONT for 31 years, currently occupying 18.5 acres on the airport's south side. The new agreement includes two 10-year options exercisable by FedEx, potentially extending it to 50 years. It also offers FedEx the opportunity to lease approximately 40 additional acres adjacent to the northwest quadrant premises for additional cargo facilities or ramp infrastructure.

(Source: Ontario International Airport news release. Image from file)

FMI: www.flyOntario.com