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increased from 1989 through 2007. In 2003, OAK experi-
enced the highest passenger levels ever in the history of the
airport, and that trend persisted for the subsequent 4 years.
To support this passenger growth, OAK began renovations
to its existing two terminals by adding five gates and a new
baggage claim area to Terminal 2. Roadways, curbsides, and
parking lots were renovated and expanded. The master plan
for the airport also reserved the OMC area as a potential
reuse site in connection with a future third passenger ter-
minal. In this environment of growth, there seemed to be
several viable alternatives for the vacated OMC.
HISTORY AND DISPOSITION OF THE PROPERTY
FIGURE 22 Aerial view of the OMC and access to the runway. The OMC is an older structure first constructed in 1972 on
behalf of World Airways, Inc. under the terms of a long-term
lease. World Airways used the facility to maintain its own
The OMC has access to the airfield and is designated aircraft and provided maintenance for third-party aircraft. In
for aeronautical use. The Port of Oakland moved quickly to 1986, World Airways terminated its lease. Shortly thereafter,
investigate alternative uses for the OMC, both aviation and in 1988, the Port of Oakland and United negotiated a 25-year
nonaviation. Options under consideration for the OMC were lease for United to use the OMC as its systemwide base for
(1) finding another tenant to provide aircraft maintenance, wide-body (B747, B767, and B777) aircraft. United spent
(2) conversion or demolition for a new passenger terminal, approximately $50 million in facility upgrades.
(3) modification or demolition to accommodate cargo opera-
tions, (4) use of the apron for additional automobile park- United filed for bankruptcy protection in December 2001
ing, (5) use of the facility for airport support (maintenance/ and thereafter, United continued to operate at the OMC and
vehicle storage), or (6) a mixed-use combination. was responsible for post-petition rental payments, which
remained current until the lease was rejected in May 2003
The context for consideration of a wide array of options (United was also current on its prepetition rental obliga-
was informed by robust growth at OAK over the past 20 tions). The balance of future rental obligations was dis-
years. Figure 23 shows how passenger volumes steadily missed through bankruptcy. Any required environmental
FIGURE 23 Oakland International Airport passengers, 19892009. (Source: Oakland International Airport.)
