How will Tesla use the Modesto Airport to help workers? Hint: It doesn’t involve flight
Tesla wants to ease the Bay Area commute for its workers who live in the Modesto area. And it has landed on a solution that could provide the city with nearly $1 million to help its airport.
While the solution involves the Modesto Airport, it does not involve flying. The electric carmaker wants to lease about 500 parking spaces at the airport. The lease would be for two years, and Tesla would pay a base rent of $80 per space per month. That is $480,000 annually for 500 spaces.
Councilman David Wright, who is a member of the Airport Advisory Committee, said the parking spaces would be for Tesla employees. He said Tesla would provide 24-hour security. Wright said he believes the employees then would be bused to their jobs in the Bay Area. Tesla has a plant in Fremont, which is 70 miles from Modesto through heavy commuter traffic.
Wright said a city official briefed advisory committee members about a month ago on the proposal. The City Council on Tuesday authorized City Manager Joe Lopez or anyone he designates to negotiate and enter into a lease with Tesla.
The Modesto Airport has the room. It has not had commercial passenger flights since June 2014, when SkyWest departed.
SkyWest had operated daily flights between Modesto and San Francisco. The flights were hindered by cancellations and delays, causing Modesto travelers to miss connecting flights at San Francisco International Airport.
“We have a lot of parking there. We have a lot of land that is not being used,” Wright said about the airport, “And they (Tesla) really like the location.”
He said Tesla has been looking for a spot for its workers to park and picked the Modesto Airport because it is centrally located for its workers who live in Merced, Turlock, Modesto, Riverbank and other nearby cities.
Wright said he hopes this could be the start of a long and productive relationship between Modesto and Tesla.
More details were not available. Tesla did not respond to a request for comment Wednesday, and city spokeswoman Diana Ruiz-Del Re said Modesto has signed a nondisclosure agreement. The Bee requested a copy of it.
But Tesla states that it helps its workers with their commute. That includes free shuttles, van pools and providing workers with monthly payments to help with the cost of commuting.
Ruiz-Del Re said city officials believe they can come to terms with Tesla in about 30 days. She said a lease agreement would not require City Council approval. Wright said the money the city earns from the lease could only be spent on the airport. Ruiz-Del Re confirmed that.
The City Council voted 6-0 in closed session Tuesday to have the city negotiate and enter into a lease with Tesla. City councils are allowed to meet in private to discuss the price and terms of the sale, purchase or lease of property.
City Attorney Jose Sanchez reported the council’s action at the council meeting. He also reported the terms include a two-year lease that would become month-to-month after that, and a base rent of $80 per parking space per month for about 500 spaces.
Modesto is not the only city to sign a nondisclosure agreement.
Turlock signed one in July 2020 with a developer regarding the building of an Amazon fulfillment center. The agreement stated officials could not discuss the project, but the city had to provide documents that fell within the scope of the California Public Records Act.
The agreement eventually was voided once work on the center progressed, and city and Amazon officials spoke publicly about the project.
Amazon begin hiring workers this week at the fulfillment center, which is expected to open this month.
