San Diego Air Commerce Center At Brown Field Receives City Commitment to Move Forward; City Signs Memorandum of Understanding to Build World-Class Air Cargo Facility.

SAN DIEGO--(BUSINESS WIRE)--April 6, 1999--The City of San Diego has placed its full commitment and support behind the San Diego Air Commerce Center at Brown Field (SANDACC) through the signing of an amended Memorandum of Understanding (MOU).

The City's action provides the project team, Brown Field Aviation Park (BFAP), and its financing partners with the assurances needed to create an international air cargo transportation center at Brown Field.

"The partnership we have forged with the City will allow San Diego to gain millions of dollars in rent, thousands of jobs and provide an enormous boost to the local economy," said Joseph A. Piscitell, president and chief executive officer of Aviation Development Services (ADS), the managing partner of BFAP.

The terms of the amended MOU include a 50-year lease agreement with payment to be made in full by BFAP upon the sale of bonds to finance the project including all City operating costs to manage and operate Brown Field.

"The conversion of Brown Field into a world-class cargo hub through a regional approach to aviation management will allow smarter development and utilization of all the region's airports providing better service to the diverse needs of each facility," said Piscitell.

"A recent report concludes that the San Diego region has fallen far below its potential due to a lack of transport infrastructure. A dedicated air cargo airport at Brown Field with ample space and logistical support facilities and long-range runways will play a major role in addressing air cargo imbalances in the region," said Larry Killeen, formerly with the Port of San Diego, who in March joined the team as president of SANDACC and senior vice president of ADS.

Within the next three months BFAP and the City of San Diego will finalize the terms of the development agreement and the operating and maintenance agreement. The city council is expected to review and take action on all agreements, the master plan and environmental studies by early fall 1999.

BFAP is a venture comprised of Aviation Development Services, a financier of aviation-related projects, Kent Holdings and Affiliates, which has a long legacy of real estate investments in San Diego County, and Lehman Brothers Inc., the largest underwriter of airport financing in the world.

The San Diego Air Commerce Center will include air cargo operations, general aviation, warehousing and distribution, aircraft maintenance, administrative and logistical support, as well as retail and commercial facilities, restaurants and overnight lodging which will interact and support the higher levels of aviation activity.