Fifty (50)-year Percentage Lease with Alps Hospitality, Inc.

The City of San Diego has entered into a fifty-year percentage lease agreement with Alps Hospitality, Inc., to extend the existing lease of a 19.27-acre parcel at 8110 Aero Drive within the Montgomery-Gibbs Executive Airport, where the Four Points by Sheraton Hotel is located. The original lease, which has 27 years remaining and expires April 30, 2052, is being replaced with a new 50-year term in exchange for Alps Hospitality’s substantial investment in comprehensive hotel improvements. These improvements include renovating interior spaces such as guest rooms, upgrading landscaping, repainting structures, refurbishing the adjacent golf course, and installing solar energy systems on the hotel roof and in the parking lot pursuant to a General Development Plan. To facilitate the solar component, a thirty-four-year sublease has been approved with 8110 Aero Solar, LLC, for the installation, operation, and maintenance of a solar panel system utilizing approximately two acres of land and the hotel’s roof. The project qualifies for multiple categorical and statutory exemptions under the California Environmental Quality Act, including Sections 15301, 15302, 15304, 15311, and 21080.35, which exempt the project from detailed environmental review due to its nature as a minor alteration of existing facilities and a state-approved solar energy initiative. No federal acquisition regulations apply, as this is a municipal land lease arrangement governed by local and state law. Payment obligations and contract administration are handled internally by the City’s Department of Real Estate and Airport Management, with Thurman Hodges serving as the primary point of contact. The lease structure is revenue-based rather than fixed-price, and no formal contract value, accounting codes, or federal invoicing mechanisms are specified. The agreement is not subject to standard federal procurement processes, and no contracting officer, COR, or COTR is designated under federal guidelines, reflecting its status as a long-term land use agreement rather than a government procurement contract.