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Z140213 G's moffettplans

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  • 1. Choose a City Local Business Directory Book of Lists Upstart Business Journal Contact Us Sign In Like on Facebook Follow on Twitter Follow on LinkedIn Follow on Google+ Silicon Valley Business Journal Search Home News People Events Jobs Resources Store Subscribe NowLimited Time Offer Sign Up for the Bay Area Structures Newsletter See all newsletters Enter your email address Sign Up Feb 10, 2014, 5:50pm PST Updated: Feb 11, 2014, 4:36pm PST Google's Moffett Field plans include robots, space tech, aviation
  • 2. Nathan Donato-Weinstein Real Estate Reporter- Silicon Valley Business Journal Email | Twitter The cavernous Hangar One at Moffett Federal Airfield was built by the Navy in the 1930s to hold military dirigibles. Now a Google Inc. subsidiary plans to use the 350,000-square-foot structure to develop robots, rovers, space and aviation projects, a government official said. The hangar, and the rest of the 1,000-acre Moffett Field, are part of a pending lease between Google and the federal government announced Feb. 10. The deal highlights further expansion for Mountain View-based Google as it reaches beyond its Web-search and advertising revenue machine to research and development into emerging technologies. And it becomes another real-estate puzzle piece Google is collecting in an effort to lock down land for growth near its headquarters. Moffett Field is directly adjacent to Google's planned Bay View project, a 1.1 million square-foot development the company placed on hold last year. Google's Planetary Ventures LLC plans to use Hangar One — the 8-acre, historic structure that preservationists have been fighting to save — for research, testing, assembly and development of new technologies related to space and aviation, NASA spokeswoman Lauren Worley said in an email. Google’s Planetary Ventures would also hold the lease to two additional hangars, a working airfield, a California Air National Guard base and a golf course. The company will take on managing the airfield for the government. The site also used to have barge access to the San Francisco Bay, a tantalizing possibility in an era of Google ferries shuttling workers to San Francisco. “There’s a lot they could potentially do out there,” said Lenny Siegel of the Save Hangar One committee, who closely tracks activity at Moffett. He's also a board member for the Earth, Air and Space West Educational Foundation. “That’s what we’re waiting to find out.” One thing is clear: The potential deal showcases Google’s incredible growth and ambition as it adds staff and branches out into more business lines such as selfdriving cars, robots and wearable technology. For now Google isn’t saying much about its plans for Moffett Field. A statement issued Monday reads: “We are delighted to move ahead in the selection process and we look forward to working with both GSA and NASA to preserve the heritage of Moffett Federal Airfield.”
  • 3. Lease makes sense Google has garnered press for its groundbreaking work on self-driving cars and other emerging technology. Its work in space is less well known. Its efforts include the Google Lunar X Prize, a space competition sponsored by the company and organized by the X Prize Foundation. It offers $40 million in incentive-based prizes for the first private aircraft to land safely on the moon. Before it could use the huge Hangar One structure, Google would have to sink millions into "re-skinning" it — essentially, putting on a new siding. That's cheered preservationists such as Siegel, who have fretted for years over the building's longterm future after the government removed the toxic skin in 2012. (Read more about Hangar One's complex history here.) "Recovering that hangar is probably a money-losing deal," said Siegel, who has been pushing to have a public science museum at the airfield. "There's some charity involved here." In a memo, NASA official Richard J. Keegan Jr. praised the Planetary Ventures proposal. He wrote that two other entities submitted responses to the competitive bid. One was "nonresponsive" because it did not include a required bid deposit. The other "lacked any sunstantive plans to re-side Hangar One and manage (the airfield)." "In addition to immediately re-siding Hangar One, (Planetary Ventures) proposes to provide significant investment to upgrade the existing golf course, rehabilitate Hangars 2 and 3, and create a public use/educational facility as a benefit to the local community," Keegan wrote. "These additional investments exceed the requirements in the (request for proposals)." "With GSA and NASA's announcement today, Hangar One has been saved and will be restored and rehabilitated, honoring its place in South Bay history and community identity," Congresswoman Anna Eshoo, who has been active in trying to save the hangar, said in a statement. She added that "Moffett Federal Airfield has and will continue to play a critical role as home to the 129th Rescue Wing," a National Guard unit. While Google’s playbook for the larger site is not yet known, the site makes sense from a strategic perspective: To the west is Mountain View’s North Bayshore, an area thick with millions of square feet of Google buildings. On the other side of the airfield is Sunyvale’s Moffett Park office submarket, where Google has been growing by leaps and bounds in Jay Paul’s ever-growing office campuses. It would make sense that Google would want to control the entire area.
  • 4. Planetary Ventures already leases the 42-acre Bay View site at the north end of the NASA Ames Research Center for an ultra-green office campus — its first ground-up development. (Early construction was put on hold last year as Google worked out design issues.) “They’re kind of encircling NASA Ames,” Siegel said. Google’s executives have long had an aviation relationship with NASA: It’s where they store their personal planes through a separate company they control called H211. But the prospective lease announced Monday is with a direct subsidiary of Google, not a separate plane operator. That opens up possibilities beyond aviation, Siegel noted. H211, meanwhile, is working on a major new jet center at Mineta San Jose International Airport. One potential is real estate development, though the jury is still out on how much could be built: The federal government previously stated that the site could accommodate a mere 90,000 square feet of new development (that’s less than a Target retail store). But observers I spoke to on Monday said anything is possible in negotiations. And consider this: A couple years ago, a massive, 3 million-square-foot research campus with the name University Associates Silicon Valley was proposed for 77 acres just south of Hangar One. That project eventually went on hold because of high infrastructure costs, but the entity that proposed it — a joint venture of UC Santa Cruz and the Foothill-De Anza Community College District — still holds the ground lease. Experts I spoke with said Google’s lease of Hangar One could pump life into those plans once again. It included something Google has long wanted in the area: Housing. (Read an update from last year here.) Another possibility: A Google ferry terminal near Mountain View. Siegel points to recent tests of a Google-run ferry between San Francisco and Redwood City and Oakland. “But that doesn’t do them much good, because Redwood City is too far from Mountain View,” he said. “A ferry coming into Moffett Field, where they have jobs just across the creek, could help them solve the problem of all the buses.” It’s not so crazy. After all, this is a company that built its own multi-story barges on both coasts unbeknownst to anyone until an intrepid Cnet reporter did some digging. Siegel points out that the Navy used to float a barge to Moffett through the Guadalupe Sough on a regular schedule years ago, an effort that required substantial dredging every once in a while. (The theory was first raised last month by the Mountain View Voice.)
  • 5. Next steps Officials stressed that scheduled commercial flights are not in the cards. Neighboring city leaders had been worried that an air cargo operator might lease the site. It's uncertain when a deal could be final. NASA officials told me Monday afternoon they did not have a timeline. Officials first put the complex up for lease last May. There’s also no word on how much Google might pay to rent the ground and the facilities, but it apparently proposed a significant amount. Keegan wrote: "In addition to the investments, PV proposes significant rental payments over the term of the lease agreement." Rehabbing Hangar One – whose toxic skin was painstakingly removed last year – could cost tens of millions of dollars alone. “If it includes fixing up the runways, that's probably tens of millions of dollars,” Siegel said. “It’s tens of millions for Hangar One, and the other hangars are in bad shape too. It could be $100 million in value in what Google’s planning to invest in Moffett Field.” Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal. Related links: Mountain View Industries: Commercial Real Estate We Recommend Microsoft, Apple, beware: Chromebooks pick up 21% of U.S. sales Promoted by Taboola Apple begins demolition Google airport in San at spaceship site, clearing Jose to break ground in way for new campus January
  • 6. How other tech hubs compare to San Francisco - San Francisco Busine… From Around The Web 14 Benefits Most Seniors Didn’t Know They Had Homeowners Are In for a Rate Spike Your Linkedin Profile: Why It?s Worth The Trouble New smax The Art of Living Better U.S. Bank Connect All Your Videos, Now on Your TV RealPlayer Trending In Partnership with Sam Liccardo Shantanu Narayen
  • 7. Pat Gelsinger Tim Bajarin Jeremy Stoppelman

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