THE SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY
(SBIAA) / INLAND VALLEY DEVELOPMENT AGENCY (IVDA) PROJECTS

The second component of the Group II project will involve the development of new infrastructure in cooperation with the IVDA and the SBIAA at the former Norton AFB in San Bernardino, California. These particular infrastructure improvements will be the third investment of a CMB commitment towards $38.1 million pledged by the CMB partnerships in support of the massive 2.2 million square foot, $295 million Stater Bros. distribution and office complex located on the former base. This facility alone is expected to employ over 2,500 U.S. workers.

Road Improvements (3rd & 5th Streets) - The roadway improvements to 3rd and 5th Streets involve two segments. The work primarily involves roadway grating, widening and repaving. These roadways extend east-west in the Cities of Highland and San Bernardino and are located immediately north of the former Norton Air Force Base, presently known as the San Bernardino International Airport (SBIA or the Airport). The first segment is located in the City of Highland and consists of road improvements to 3rd and 5th Street in the City of Highland and is identified as the “Highland Agreement Road Project”. This segment entails road upgrades to 3rd Street between Victoria Avenue eastbound to Palm Avenue and to 5th Street between Victoria Avenue and State Route 210. The cost of the Highland portion is $8.6 million. The second segment is identified as the San Bernardino segment which involves improvements to 3rd and 5th Streets from Victoria Avenue extending westerly to Sterling Avenue. The cost of the San Bernardino portion is $9 million. These improvements will provide additional critical access to the Airport and the Hillwood logistics center from the north and east. Additionally, it will provide the required access to trucks and semi-trailers to a certain parking facility that was funded by CMB in Phase I as well as to provide additional points of ingress and egress to the Stater Bros. Distribution Facility. This will thus allow access for trucks and other vehicles to the main entrance of the new Stater Distribution Facility from Del Rosa Blvd. and Leland Norton Way. The 3rd Street and 5th Street improvements are part of the IVDA’s and SBIAA’s commitment to develop the San Bernardino International Airport and to support major employers such as Stater Bros. by increasing roadway capacity and upgrading related infrastructure. CMB funds are intended to be used for initial expenditures related to the 3rd Street and 5th Street project such as design, engineering, entitlement, permitting and other related costs.

Drainage Improvements (Alabama Avenue Culverts) - The Alabama Ave. culvert project is a vital project to the overall storm water management of the SBIA development area. This area experienced extreme flooding in 2004 due to inadequate storm drain systems in Alabama Avenue. The upgraded culvert system will alleviate flooding in the south Airport development area of the SBIAA and the IVDA which is necessary to be completed to accommodate the new Stater Bros Distribution Facility. Without this new culvert-drainage flood abatement development, the Stater Bros. Distribution Facility would be at risk for flooding. The total cost is presently estimated to be at least $4.2 million and is joint development project with the County of San Bernardino, City of Redlands, City of San Bernardino, City of Highlands and the IVDA. Each of these five public entities has committed to contribute a pre-determined amount as the local match for a $3.8 million Federal grant. IVDA's component is $180,000 which will be derived from CMB funds.

Flood Abatement (East Side Area) - There is a tremendous need to complete a $6 million dollar flood control project on the north side of the Airport on lands located in the IVDA Redevelopment Project Area. This flood control project is located both north and south of 3rd Street and crosses under 3rd Street at two locations adjacent to the Airport. Those portions of this open flood control channel to the south of 3rd Street are contiguous to the Airport properties at this location. As part of this flood control project several tasks must be completed including the acquisition and demolition of surrounding dilapidated buildings. This drainage and the flood abatement will also include the development of a flood control channel which will entail the removal of the existing earthen channel and related soil along with considerable amounts of site grading to achieve the necessary elevations to maximize the drainage area being benefited and to provide for required water flow rates. Portions of this project further to the west of Tippecanoe Avenue will involve the cooperation and funding of San Bernardino County and the City of San Bernardino’s Economic Development Agency. This second segment is part of the comprehensive flood control plan for the IVDA Redevelopment Project Area that also includes the Alabama Avenue culverts project described in Project # 2 above. The implementation of the overall IVDA flood control plan was necessary to secure the Stater Bros. commitment to build their massive $295 million distribution facility at the Airport.

Solar Installations for Airport Terminal - With rising costs of energy, particularly in California, SBIAA is pursuing the construction and installation of a Photo Voltaic system for the newly renovated Airport Terminal Building to reduce operating costs and enhance profitability. The proposed installation will be a combination of ground mounted and solar canopy installations adjacent to the current Airport Terminal. The project is currently in the design phase, and construction is anticipated to commence in early 2010.

Building Improvements for Building 48 -  This project involves the rehabilitation of an existing 30,000 square foot Airport Building for general office and airport administration facilities. The scope of work includes abatement, interior demolition, and construction of new office, board rooms, meeting areas, and support facilities, including additional space which may be available for lease to ancillary and support industries.

EDA Weatherization/Roof Improvements - There is an ongoing need for SBIAA to upgrade and improve existing hangars and buildings originally transferred from the US Air Force. SBIAA is in receipt of a Federal EDA grant to assist with portions of this work, more specifically, certain weatherization, life safety, building, and roofing improvements to meet building code compliance standards which may also include electrical system renovation, fire suppression, roofing, interior and exterior structural improvements, and/or demolition and abatement for Buildings Nos. 763,695, 752, 795, 811, 56 and 58, including engineering survey investigation, design, construction management and construction, described as follows: Removal of extraneous installations, structures and penetrations; Replacement of existing cast iron roof laterals and down drains with modern durable piping systems; Installation of: roof drain inlets, rain gutters, lateral drainage features to connect down drains to existing storm drain systems, including pavement removal and replacement, roof vents, OSHA approved access and ladders, access doors and windows to meet Uniform Building Code Requirements, installation of skylight window flashing, installation of polyurethane foam roofing, bird resisting equipment , roof access routes and walkways, aluminized paint on all exposed oil/fiber siding, dome roof acrylic coating, exterior paneling. The current year grant also includes certain infrastructure and improvements in support of the northern Airport General Aviation Area, which include parking and roadway infrastructure, entry monuments, landscape, curb and gutter, streetlights, and irrigation needs in direct support of General Aviation related business development.



EDA Pavement Improvements - SBIAA is currently in receipt of a Federal EDA Grant for the rehabilitation and replacement of certain airport pavement and ramp areas. This work is a vital component of the airport infrastructure improvements required to support and sustain scheduled passenger airline service. The scope of work includes demolition of existing concrete ramp sections, stockpiling and crushing, and reutilization of the material in new paving sections as sub base material. All subbase will be compacted and tested, then a new concrete taxilane section will be poured and cured. All taxilane areas from the main runway to and from the new Airport Passenger Terminal will then be striped and added to the Airport’s taxilane and taxiway system, subject to FAA review and approval.

Summary of the IVDA / SBIA Project

This project will represent the fourth separate investment by a CMB partnership into the IVDA / SBIAA in their ongoing efforts to complete the master reuse plan for the former Norton Air Force Base. This project also represents a subsequent installment of a specific commitment of $38.1 million by CMB to help fund the infrastructure needed to attract and support the massive Stater Bros. Market’s complex at the SBIA. Pursuant to these commitments, the IVDA/SBIAA and CMB jointly devised a way to pay for the infrastructure and development projects that met both the needs of these redevelopment agencies as well as CMB’s EB-5 project guidelines for its investors. This investment with the IVDA by CMB Group II will provide $20 million in capital from foreign national investors. This funding will enable the IVDA and SBIAA to honor their commitment to Stater Bros. and will continue to transform this area from a closed former military installation into a thriving civilian center focusing on jobs creation in commercial aviation, manufacturing, distribution and logistics. This infrastructure project is a classic example of public and private funding combining to create new jobs. The 902 indirect jobs far exceed the requirement for USCIS job creation for ten new jobs per investor. Additionally the direct jobs that are created, and not counted for immigration purposes, shows just how powerful infrastructure building is for job creation. There are other future jobs that will come simply because the infrastructure is in place.

CONCLUSION

The business plan of CMB Infrastructure Investment Group II is the fourth business plan created for a CMB EB-5 investment partnership. The structure is identical to the previous three approved partnerships. The structure is the same in that foreign national funds are combined into an investment partnership. This partnership provides critical upfront infrastructure investment capital as bridge financing for high unemployment areas with the former military base reuse authorities. This funding is tied to private and public funds thus multiplying the effects on investment and job creation. This CMB model for job creation has a proven track record dating back to 1998. The jobs forecast for CMB’s Mill Street project in 1998 can be looked at today for actual jobs. The RIMS II study in 1998 was more than accurate at forecasting job creation.