The Banning City Council recently heard from the developers of the industrial park replacing the municipal airport, a project that has been in progress for several years.

The Banning council members were asked not to offer support or opposition to the project during the June 5 workshop session. It was an informational session only.

Banning committed to closing its airport nearly a decade ago, first completing an Airport Feasibility Study in 2016. In 2017, it adopted a resolution stating the closure of Banning Municipal Airport was a goal of the city, “as soon as legally permitted.”

It got that permission seven years later, when the U.S. House of Representatives passed the “Federal Aviation Administration (FAA) Reauthorization Act of 2024,” in which the FAA approved the airport’s closure. Later that year, the city submitted its official closure report to the FAA. To function as an airport, it would need $8.1 million in capital investments.

In its place, the city is moving forward with the development of an industrial park. Developed by Hillwood, the park will have six industrial and warehouse buildings, taking up approximately 3.3  million square feet on 202.7 acres.

“Our value proposition for the city and for the citizens of Banning is to take a property that is losing money, which is taking resources, and turn that into an income-generating asset for the city,” James Staunton, vice president, Hillwood, said.

The city initiated its partnership with the private firm Hillwood, also known as Industrial VI Enterprises, two years ago. It develops industrial, residential, mixed-use and office projects across 28 states and five countries. Since its founding over three decades ago, it has acquired and developed 288.3 million square feet of properties. In California, it has completed 2,600 acres in projects in private-public partnerships with cities and municipalities.

“We can do this project for the city. We will do what we say we can do, and that is evidenced in our success and what we have been able to grow over the past 30 years,” Staunton said.

The city’s proposed transaction with Hillwood is structured as a 55-year ground lease. Estimates indicate that the project's annual income would average approximately $5.2 million over the initial lease term, and that the redevelopment could generate more than $2 trillion in economic output over the next decade, including the creation of thousands of jobs.

Hillwood has completed several projects on or around airport properties. It has 72.2 million square feet in active or completed projects in these areas across 11 states, with experience navigating FAA regulations and processes. These airports include the Detroit Metropolitan, the San Bernardino International, and the Ontario International airports.

“Aviation is very much at the core of the company,” Staunton said.

The redevelopment of the Banning Municipal Airport will bring jobs to the community, Staunton said, as it draws Fortune 500 companies to its industrial parks. It has worked with Amazon, FedEx, Best Buy, Target, Walmart and Wayfair in the past, to name a few.

“This is not all just trucking and logistics. The companies here are really the backbone of our economy, the backbone of American industry,” Staunton said.