Huge Former Douglas Property ("Fly DC Jets"), Now 717 Plant, Is Sold By Boeing Realty to Sares Regis Group, Councilwoman Schipske Says

"This effort has been in the works for some time, with all parties, including the City, working together to complete the transaction. Boeing has done great work with the Douglas Park development, and now we are excited to have a world-class real estate developer complimenting that success both at Douglas Park and at the 717 Facility. We are anticipating a great future for this development site under the leadership of Sares Regis," says Councilwoman Schipske (in whose district the property is located).

Details of exactly what the Irvine-based Sares Regis Group plans to do with its newly acquired property, and when, weren't immediately available this afternoon [Oct. 4] [SRG didn't return our call near the end of the business day]

On its website, Sares Regis says "For decades, SRG Commercial has created value for users and investors through commercial real estate development, investment and property services.

[SRG website text[ SARES-REGIS Group’s Commercial Division has earned the reputation as a leading west coast real estate firm recognized for its accomplishments in the development, acquisition and management of quality industrial and commercial properties.

Since 1994, SRG Commercial has successfully developed and acquired more than 78 properties in excess of 35 million square feet with an aggregate value of approximately $2.53 billion including:

• Warehouse / Distribution / Manufacturing Properties
• Master-Planned, Mixed-Use Parks
• Research and Development Facilities
• Multi-Tenant Industrial Business Parks

In September 2008, Mayor Bob Foster announced (with multiple TV news outlets present) that third parties planned to acquire the property and turn it into "Long Beach Studios," a state of the art motion picture/television production facility. The announcement came just as the economic downturn deepened, Wall Street had its near meltdown, "The Great Recession" arrived...and the studio transaction didn't materialize.

For a time, Councilwoman Gerrie Schipske also pressed city officials to do more to encourage Tesla Motors, a cutting-edge electric car maker, to locate to the site...and was critical of Mayor Foster and city officials for in her view not doing enough. Downey and Long Beach were both finalists...and Tesla ultimately chose to locate in northern CA, leaving Downey officials steamed and leaving the property's future uncertain.

During his Jan. 2010 State of the City message, Mayor Foster contrasted his otherwise definitive statements about the city's future with a shoulder-shrugging comment to the effect that the site would either become an auto plant or a movie studio (drawing light laughter from the audience, and the Mayor)...although neither appears to be the case now.

So...what's allowed, and not allowed, or only conditionally allowed under the property's current zoning? This was amended within the past twelve months at the request of Boeing Realty. On December 6, 2011, the Council voted after a public hearing to amend the Douglas Aircraft Planned Development District (PD-19) as described as follows in an accompanying city staff memo:

...The Boeing Company is proposing the amendment to eliminate the uncertainty associated with interim uses within PD-19. An updated Ordinance allowing permanent uses for the 717 site is expected to solidify the market for long-term economic interests with potential tenants. As the most recent amendment was adopted in 2008, the interim period is in its third year. The current PD-19 Ordinance references manufacturing use standards that are correspondence with the use standards of the IG zone, the amended document shall include definitive language that clarifies specifically which of those standards will also be applicable within PD-19. As the IG zone includes some of the most intensive uses allowed within the City, attention has been given to the exclusion of certain trucking, storage and manufacturing uses that are less appropriate within PD-19.

As indicated in the redline version of the amended Ordinance, uses that require an Administrative Use Permit or Conditional Use Permit within the IG zone will require the same within the PD-19 district.

Boeing's website includes a lengthy history of the gargantuan facility.

[Boeing.com text] The Long Beach site is a component of Boeing Commercial Airplanes, producing the 717 twinjet and supporting in-service airplanes. Opened by the Douglas Aircraft Company in 1941, the Long Beach site in California became part of Boeing as a result of the merger of Boeing and McDonnell Douglas in 1997.

During its 65-plus-year history, the facility produced more than 15,000 airplanes, including the DC-3, DC-8, DC-9, DC-10, MD-80, MD-90 and MD-11 and 717 passenger planes, as well as such military airplanes as the famed C-47 (military version of the DC-3), the B-17 (in cooperation with Boeing), the A-20, A-26, C-74, C-124, A-4D, C-133 and early models of the C-17.

Donald W. Douglas opened the Long Beach facility on the eve of World War II, having run out of production space at his plant in Santa Monica, Calif., as well as at a second facility in El Segundo, Calif. He also started production lines in Chicago, Ill., and Tulsa and Oklahoma City, Okla. Altogether, the Douglas Aircraft Company produced more than 45,000 airplanes during its long history.

...May 1958 saw the maiden flight of the first Douglas commercial jetliner, the four-engine DC-8, which established world speed, payload and range records. In all, 556 DC-8s were delivered through 1972. The highly successful Douglas twinjet program followed, beginning with the DC-9, an airplane with aft-mounted engines that first flew in February 1965. Five commercial models were produced, carrying from 75 to 139 passengers, as were two military derivatives. In all, 976 DC-9s were delivered through 1982.

The DC-10 trijet family entered service in 1971. Six models of the DC-10 were produced in addition to the KC-10 military tanker/cargo aircraft, which was developed for the Air Force. A total of 446 DC-10s and KC-10s were delivered through 1989.

The MD-80 series entered airline service in October 1980. It was the first short- to medium-range jetliner to meet the most stringent federal noise standards. Four versions of the advanced twinjet aircraft -- the MD-81, MD-82, MD-83 and MD-88 -- have seating for approximately 150 passengers, while the MD-87 seats 130 passengers. The last of 1,191 MD-80s was delivered in December 1999.

The MD-11, a twin-aisle trijet, was introduced to service in 1990 in passenger, freighter, combi and convertible freighter models. The capacity of the MD-11 is more than 100 tons for the freighter model or typically 298 passengers. The last of 200 MD-11s was delivered in February 2001.

The Boeing MD-90 is an advanced twin-engine, mid-size, medium-range jetliner. The MD-90 has seating for 153 passengers in a mixed-class configuration. Deliveries to airlines began in February 1995. The last MD-90 was produced in the first quarter of 2000. The company produced 114 MD-90s.

In August 1997, McDonnell Douglas merged with The Boeing Company, and Douglas Aircraft Company, which was the commercial airplane manufacturing segment of McDonnell Douglas, was renamed the Douglas Products Division. It was renamed the Long Beach Division of Boeing Commercial Airplanes in August 1998.

After the merger with McDonnell Douglas, Boeing renamed the MD-95 and introduced it into the short-range jetliner market as the 717-200 in early 1998. The 717, which entered commercial service in October 1999, was designed specifically for high-frequency routes. The highly efficient 717 concluded its 156-airplane production run in May 2006.