San José International Airport has received approval from the San José City Council in the US for the construction of an $82m corporate aviation facility.
San José City Council has also approved a 50-year lease agreement with Signature Flight Services to build the facility on the western side of the airport.
Under the deal, San José International Airport will receive $3m rent every year.
Signature Flight Support, a unit of BBA Aviation will build and operate the fixed base operation (FBO) facility on the 29 acres site on the western part of the airport.
Signature Flight will work in collaboration Blue City, which serves private jets of Google executives and other Silicon Valley organisations.
San José Mayor Chuck Reed said that the development of the airport's west side will generate significant revenues to the airport and the general fund, and accommodate future growth in the demand for general aviation services in Silicon Valley.
"Signature Flight Support's development proposal will help the City of San José accomplish both of these goals," Reed said.
Construction on the FBO is expected to start in autumn 2013 and includes an executive terminal, hangars, ramp space to house large business jets and aircraft servicing facilities.
Mineta San José International Airport director of aviation Bill Sherry said that after the parties reach agreement, the next steps will include the design, permitting and construction of Signature's private development at SJC.
"The redevelopment of the airport's west side, and the added revenue and local jobs Signature will provide are a valuable asset to our community," Sherry said.
The land for the construction of FBO was allocated following the relocation the of the airport's long-term parking lot to the east side of the airport as part of a $1.3bn modernisation programme.
Image: The FBO will serve private jets of Google chiefs and other Silicon Valley organisations. Photo: courtesy of Mineta San Jose International Airport.