NASA, Google (NASDAQ:GOOGL) sign 60-year Lease worth $1.16 billion

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By Hanson So on November 11, 2014 Company

According to sources, Google (NASDAQ:GOOG) has undertaken the task to renovate 3 Naval Hangars in return for space to carry out different projects involving aviation, robotics, as well as space exploration.

Part of the historic Navy base on the coast of San Francisco will be given to Google (NASDAQ:GOOG) under the long term lease signed by the company for its renovation. The property is a part of Naval Air Station formally known as Moffett Field, located on the peninsula of San Francisco.

The lease entails a rent of $1.16 billion on the 1000-acre site being leased to Google (NASDAQ:GOOG) for 60 years. The site is fully equipped with an airfield of a working nature, a gold course, and some other buildings useful for research and development.

Under the lease, Google (NASDAQ:GOOG) has undertaken the responsibility to invest over $200 million on the refurbishment of the hangers. According to the statement released by NASA, this sum figure also includes the cost of additional features the company plans to add onto the hangers. Additional features include a museum/educational facility, designed to tell the history of the landmark site Moffett, as well as the Silicon Valley.

However, Google (NASDAQ:GOOG)’s main focus seems to be on research and development. According to the official statement released by NASA regarding the lease, a Google (NASDAQ:GOOG) subsidiary by the name of Planetary Ventures LLC is going to utilize the hangars for the purpose of “research, development, assembly and testing in the areas of space exploration, aviation, rover/robotics and other emerging technologies.”

It is a long known fact that both the Google (NASDAQ:GOOG) founders, Larry Page as well as Sergey Brin, have always shown keen interest in the field of aviation as well as the dynamics of space. Recent takeovers and acquisitions by Google (NASDAQ:GOOG) seem to develop a trend, as most of them have been of firms focusing on the development of satellite technology as well as robotics.

The former Navy site based the Ames Research Center will still remain operational under NASA. Only the runways as well as hangars will be taken over by Google (NASDAQ:GOOG). Also, Google (NASDAQ:GOOG) will be given a large structure which once housed Navy airships of the 1930s. The lease is saving NASA almost $6.3 million in costs of both operational and maintenance nature.

Locally, the news has been welcomed with open arms, with locals praising Google (NASDAQ:GOOG)’s plans to renovate the historic site of Hangar One. According to US Rep. Anna Eshoo of California, the lease agreement is “a major win for our region”.

No official release by Google (NASDAQ:GOOG) has been released, detailing the purpose of the property by the company. Google (NASDAQ:GOOG), which is the market leader in advertising industry, has become a market leader in smartphone operating system in recent years. Now, with this lease, the company will be expanding in a different direction.

Google (NASDAQ:GOOG) also owns a separate property lease on the same air base in another area, which it wishes to utilize for the building of its second campus. Some of the Moffett runways are being utilized to house private jets owned by the Google (NASDAQ:GOOG) co-founders.