The year’s opening Long Beach City Council meeting is sure to be a doozy, but two special meetings being held directly beforehand are causing quite a stir today.  The Council will be briefed on the 2009 city budget in a public meeting at 3:30pm, and then will hold a closed meeting at 4:30pm for a City Manager’s office presentation about the possibility of leasing some or all of the Long Beach Airport to a slew of Wall Street investment firms. 

It’s no secret that the budget is in trouble of reaching a serious deficit (that could accumulate more than $15 million), and the airport leasing plan is one that has been explored by other cities in recent years to inject some quick capital into their General Funds. 

The lease would likely be made possible with the help of a Federal Aviation Administration program that works with such deals, called the Airport Privatization Pilot Program.  Several cities have explored the opportunity in recent years, but only Chicago’s Midway has gone forward, recently approving a 99-year lease.

Already, strong opposition has met the plan from some Councilmembers while at least one other is open the idea as a fundraising tool.  Let’s run down some of the notable quotations, along with the sources that have provided them.

West said Friday that the city had been contacted by a slew of financial companies interested in an airport deal, including notable potential investors such as Citigroup, Goldman Sachs, JP Morgan, Merrill Lynch and Morgan Stanley, according to the meeting agenda.
–    Press-Telegram, Paul Eakins

West said he called for the closed session because the inquiring companies may need to disclose sensitive financial information.
–    LA Times, Dan Wiekel and Louis Sahagan

With budget deficits looming, the idea to sell city assets – an asset by the way which was paid for by the residents of this city – is focusing on the wrong solution. The only discussion this City Council should be having right now is how we plan to live within our means and what steps we will take to reduce spending.
–    Fifth District Councilmember Gerrie Schipske, on her blog

“I don’t see this as a very attractive target for a takeover by private companies,” said Councilwoman Tonia Reyes Uranga. “The airport is close to residential areas, and there’s a grand-fathered noise ordinance that would be of concern for at least four of the city’s nine council districts. I don’t know how the airport will be profitable unless there is expansion.”
–    LA Times, Dan Wiekel and Louis Sahagan

“Don’t spend a dime on it,” said Gabelich, who has opposed airport expansion. “We need to look at the impacts on our city 10, 15, 20 years from now. The airport is surrounded by affluent neighborhoods that provide substantial property tax revenue for the city. Airport expansions lower the property values of surrounding homes. We can’t afford to lose that tax base.”
–    LA Times, Dan Wiekel and Louis Sahagan

But Councilman Gary DeLong said he was willing to have the discussion in either open or closed session. “As long as the noise ordinance is protected, I applaud the city manager for thinking outside the box,” DeLong said. “Unlike some of my council colleagues, I am going to wait to hear all the facts before I take a position.”
–    LA Times, Dan Wiekel and Louis Sahagan

“We have an opportunity to investigate some lease opportunities at the airport,” West said. “We want to gauge the City Council’s interest before we spend any time looking at these opportunities.”
–    Press-Telegram, Paul Eakins

The current count of officials who have expressed their views reads: Councilmembers Schipske, Gabelich and Uranga in opposition, with Councilmember DeLong open to the idea.

Today’s meeting will be strictly limited to gauge Councilmembers’ interest in the idea of exploring the opportunity, as any further business or financial discussion must be held publicly by law.  Mayor Foster Chief of Staff Becki Ames told the LA Times that they stand in favor of “public vetting,” so if the plan does develop any further you can expect community forums, and your chance to be heard.

By Ryan ZumMallen, Managing Editor