Tomahawk, WI 11/11/2014 (Basicsmedia) – Google Inc (NASDAQ:GOOGL) has entered into a long-term lease of 60-year with NASA. It will pay rent of $1.16 billion for the leased property including a golf course, working airfield and other buildings. The property leased is a 1,000-acre property and is a part of historic Moffett Field Naval Air base on the San Francisco Peninsula. It is located close to Google’s main campus in Mountain View. It comes as another lease deal for Google who already has leased space in another part of the former air base.
The renovation costs
The leased property by Google Inc (NASDAQ:GOOGL) will be used for the various projects involving space exploration, aviation and robotics. The internet company has to renovate the three Hangars to make it ideal for projects. It intends to invest over $200 million to renovate the hangars and develop other parts covering an educational facility or museum. The additional facility will be used to display the products related to the Moffett and Silicon Valley. Apart from it, Google has not disclosed any other specific plans related to the property.
The use of leased space
Planetary Ventures LLC, a Google Inc (NASDAQ:GOOGL) subsidiary, will use leased space for research and development work. Also, it will conduct testing and assembly process in the areas of robotics, aviation, space exploration and other technologies in the leased space. The lease is very much in line with the interests of Google founders Sergey Brin and Larry Page. The two founders have a deep interest in space and aviation industry. Even Google acquired some of the smaller firms from satellite technology and robotics industry.
The other key points
Google Inc (NASDAQ:GOOGL) will restore the historic place known as Hangar One under the agreement. It will look after the operations at the hangars and runways. The leased deal will result in cost savings of around $6.3 million in the form of reduced maintenance and operation costs for NASA.