FINAL REPORT - San Bernardino Superior Court

Section 4: SCLA Hangar Development
Table 4.4
Estimated Total Costs of Hangar Development Project
Source Use Amount
2005 Schedule A SCLAA Bonds CBS Construction Costs $17,730,000
2006 Schedule A SCLAA Bonds CBS Construction Costs 7,653,425
2006 Schedule A SCLAA Bonds
(Refinanced)
CBS Construction Costs 4,704,076
2005 & 2006 SCLAA Bonds Costs of Bond Issuances 4,600,000
SCLAA Loans to KND Affiliates 2
SCLAA Loans to KND Affiliates
Buyout of CBS Aviation
Development Interests
Payments to CBS Aviation
Subcontractors in August 2006
6,400,000
12,640,071
CBS Aviation Development Costs Subtotal $53,727,572
SCLAA Loans to KND Affiliates KND Construction Costs 38,925,758
SCLAA Loans to KND Affiliates KND Contingency & Excess Funds 2,037,611
SCLAA Loans to KND Affiliates KND General Project Expenses 380,802
SCLAA Loans to KND Affiliates
KND Costs (Interest Accrual and
Not Allocated)
7,865,555
KND Affiliates Costs Subtotal $49,209,726
Estimated Total Costs of Hangar Development Project $102,937,298
Source: City documentation on Hangar Development Project
Conclusions
In September 2005 the City Council, in its role as the Southern California Logistics Airport
Authority (SCLAA) Board of Directors, entered into a no-bid agreement with CBS Aviation
Development, LLC for the construction of hangar facilities at Southern California Logistics
Airport. The development agreement was based on a proposal put forward by the manager/owner
of CBS Aviation Development, an individual with no prior relationship to the City and whose
background and competency was not fully known. Further, there is no evidence that sufficient
background research was conducted on CBS Aviation Development or its owner until two
months after the SCLAA entered into a ground lease agreement with the contractor.
2 It is unclear the sources of funding provided to KND Affiliates by SCLAA.
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Harvey M. Rose Associates, LLC