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Locals get a glance at competing Paso Robles airport contact bids

June 16, 2024

OPINION by BILL BORGSMILLER

In a recent development, the complete proposal for a competing bid to ACI Jet for the fixed-base operator leasehold at Paso Robles Airport has been made public for the first time in nearly a year since originally submitted.

This significant document, alongside all supplemental materials, letters of support, and other exchanges, is included as an attachment in the city council meeting agenda posted Thursday evening for the upcoming meeting at City Hall on Tuesday 6:30 p.m.

An immediately apparent distinction between the proposals lies in the amount of proposed investment
and overall length of proposed lease. The competing proposal offers approximately half the capital
investment of ACI’s proposal ($8.9 million versus $17.6 million) while simultaneously requesting a longer total lease period of 45 years versus ACI’s 40 years.

This is of paramount importance since all proposed capital improvements become the property of the city at the end of the lease term.

The recommended action is to enter into negotiations with Loyd’s Aviation, the Bakersfield company
proposing the lower amount of capital investment.

For anyone that wishes to view the full proposals and supplemental responses, ACI Jet has made them
available on its “Pairs Well with Paso” information site. This site also features a comprehensive line-by-line comparison of what each proposer is offering and an analysis of how this decision will impact Paso Robles.

Additionally, a link to the city’s agenda, which includes all public comments, letters of support, and other related information, is available on this site for public access.

ACI Jet has played a pivotal role in advocating for increased public visibility into this landmark decision,
which will significantly impact the economic viability and profitability of one of the city’s most valuable
assets.
For further information, please visit the “Pairs Well with Paso” site (paso.acijet.com) or contact ACI Jet at
info@acijet.com.

About ACI Jet:

Headquartered on California’s Central Coast (SLOCAL) since its founding in 1998, ACI Jet is a recognized
leader in private aviation services. Led by founder and avid aviator William “Bill” Borgsmiller, ACI Jet’s
aviation ecosystem includes aircraft ground support services, aircraft maintenance, private jet charter
services and aircraft management. ACI Jet ensures its clients’ mission success through the
implementation of the latest aviation safety technologies and a leadership team composed of Aviators
Doing Aviation®, aviation enthusiasts who know aviation from the inside out. More information can be
found by visiting us online at acijet.com or on social media @flyacijet

Bill Borgsmiller is a San Luis Obispo County resident and the CEO of ACI Jet.

 


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Who agreeing on any of this will be alive in 40-45 years? Very few. I find it hard to give up so much control for such a long term. Phase it out, if we’re happy phase 2 gets approved with a time extension.


6

Your point is well taken, but before the lease period is shortened there needs to be an evaluation of the break even for the capital pledged. Phasing the lease may not be feasible to capitalize the investment pledged. ACI requests a 40 year lease with a capital investment of $17.6 million whereas the competitive bid requests a 45 year lease with half the capital investment. You are correct, 40 years is a long time but so is 20 years. The issue becomes, if the lease period is shortened, how much, if any, capital can a bidder afford.


5

I don’t understand the issue. Unless I missed quite a bit ACI’s bid is far better than its competitors. If there is no other issues then ACI is a far better bid.


12

But ACI’s bid might not have a high enough, or any, kickback for Mayor Harmon.


7