Keeping the World War II blimp hangar on the east side of Tustin Ranch Road standing, with almost nobody allowed inside, costs more than $1 million a year, and the City of Tustin has said that figure will keep climbing unless someone brings a plan and the money to pay for it.
The city plans to test that in public this winter. A competitive offering is scheduled for November through December 2026, so the hangar's future will turn on whether anyone submits a proposal that pencils out.
A Thousand Feet of Hangar With Almost Nothing Inside
The south hangar went up in 1942 for the Navy's lighter-than-air program. It stands about 180 feet tall, 300 feet wide and 1,000 feet long. The Navy still owns it. Under a long-term lease, the city manages the structure and part of the surrounding land while environmental remediation is finished.
The leased site covers roughly 32 acres. It runs from Moffett Drive on the north to Warner Avenue on the south, and from Armstrong Avenue on the east to Tustin Ranch Road on the west. That puts the hangar's western edge on the same road that carries Tustin Ranch traffic north and south every day.
Today the building sees only limited use, for airship storage and maintenance. A review by the historic preservation consultant Page & Turnbull found it needs life-safety repairs, including work to address the risk of debris falling from the ceiling.
The Price of Leaving It As Is
The north hangar burned in November 2023. Since then the city has kept security staff on the south hangar around the clock and added perimeter fencing, lighting, surveillance cameras and better emergency access. The city's July 21, 2026 staff report says those measures have made the site far more secure. It also says the building's structural and life-safety condition still limits what it can be used for, and that keeping it as is costs more than $1 million a year and will cost more over time.
Set against that, the cost of doing more grows quickly. These are the scenarios Page & Turnbull priced:
| Scenario | Approximate cost | What it supports |
|---|---|---|
| Baseline structural stabilization | $22.6 million | Continued airship maintenance operations |
| Rehabilitation | $203 million | A restored structure |
| Broader adaptive reuse | $271 million | New uses inside the hangar |
The low end, about $22.6 million, only makes the building safe for the airship work it already does. Before anyone can hold an event, run a business or open a gallery inside, the price goes up roughly ninefold. That jump is why the city is looking for outside partners and not planning to fund the work from its own budget.
What "Taking Offers" Means for a Building the City Doesn't Own
When the city says it is taking offers, it is not selling the hangar. The Navy owns the land, and the city is the leaseholder, so the staff report describes any deal as a possible sublease.
According to the report, the offering is meant to:
- Identify qualified organizations interested in preserving, operating or adaptively reusing the hangar
- Evaluate public-private investment opportunities
- Determine whether proposed concepts are financially and operationally feasible
- Find ways to lower long-term public maintenance and operating costs
- Support historic preservation where feasible
The site falls in Neighborhood D of the Tustin Legacy Specific Plan and is designated Mixed-Use Urban. Allowed uses under that designation include commercial retail, commercial entertainment, residential, hotel and public recreation, and the list is not exhaustive. A proposal for a use the plan or zoning does not currently permit would need later City Council approval of the necessary entitlements. Proposers can bid on the hangar alone or include nearby land to improve access, infrastructure or the overall plan.
The OC Register reported in July that one councilmember wanted proposals to cover short- and medium-term uses as well as long-term ones, and mentioned road racing, museums and film production as possibilities.
Bidders will also get unusual research material. The city has digitally documented the hangar in full, and 3D models and virtual access will be available to proposers through a secure document center.
Preservation is a goal of the offering, and it is not guaranteed. When the Council started this process on June 2, 2026, it also told staff to prepare backup options in case no workable reuse proposal comes in.
The Calendar the City Set for Itself
The July staff report set out these milestones:
- September 2026. Return to the City Council with a recommended real estate brokerage firm to market the offering.
- November to December 2026. Finalize and release the competitive offering.
- First quarter 2027. Evaluate the proposals.
- Second quarter 2027. Return to the City Council with recommendations on next steps.
The OC Register's August coverage gave a slightly wider estimate, saying the city's offering memorandum would come out sometime between October 2026 and January 2027. Under either version, the first real sign of market interest arrives in early 2027 and a Council decision on direction comes by the middle of next year.
Four Pillars Show What Happens Without a Plan
The north hangar shows what the land looks like with no plan in place. The fire started early on November 7, 2023. Tustin kept a local state of emergency for about 950 days and ended it in June 2026. The fire destroyed the building and spread ash and other harmful material into the surrounding community.
That land, known as Parcel 18, covers 85 acres and still belongs to the Navy. All that is left of the north hangar is four concrete corner pillars and a damaged slab. For more than two decades the parcel was planned as a county regional park, but the county never found the money. In 2021 the city, acting as the Local Reuse Authority, removed the park from the federal reuse plan. City staff are now looking at how new development could be balanced with open space, sports fields, trails, playgrounds and possibly aquatic features.
That history matters for the south hangar. Removing it would not happen fast either. The city's FAQ says demolition would take a two-to-three-year process with the Navy and preservation agencies, plus environmental review and formal approvals. The FAQ also says the decision to keep or remove the hangar has not been made and belongs to the City Council.
Where Residents Come Into the Process
The most recent public discussion was the city's annual Local Reuse Authority meeting on August 18, held inside the AMC theater at The District at Tustin Legacy. The OC Register reported that residents asked what growth on the former base would mean for people who live outside it. They raised preserving the area's military history, traffic, parking, and whether the south hangar has enough fire protection. Mayor Austin Lumbard answered by describing the meeting as part of the feedback process.
"We are collecting all that data, ultimately shaping the community that you all, that we all, will enjoy now and in the future."
The city's FAQ lists [email protected] and 714-788-5859 as contacts, along with the Tustin Legacy webpage and its project-update newsletter.
Some people want more than updates. In an August opinion column in Voice of OC, the writer argued that the city should consider opening the hangar for open-house visits.
Change is already underway around the site while the offering moves ahead. Swaim Way has been closed since September 2026 for Irvine Company's Tustin Legacy residential project. Phase 2 started in October, and the first buildings are expected in summer 2028, along with a publicly accessible café and a 0.66-acre public park at Swaim Way and Compass Avenue.
This Saturday, November 7, which is three years to the day after the north hangar fire, the city's Veterans Day Celebration and Car Show runs from 10 a.m. to 2 p.m. at Veterans Sports Park, 1645 Valencia Avenue.
If you live in Tustin Ranch and want to understand how what's being built at Tustin Legacy fits with your own plans, Jen Gong and her team follow these projects closely and can show you how they line up against current numbers for your home. Get Your Free Home Valuation.
