PREPARED BY: KIERON SLAUGHTER DATE OF MEETING: 8/3/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION APPROVING A LICENSE AGREEMENT WITH WING AVIATION LLC FOR THE USE OF CITY OWNED PROPERTY AT 3400 SAN PABLO DAM ROAD AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
CEQA: This proposed action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15303 (New Construction of Small Structures).
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2025-2027 Council Priority Workplan Compliance Statements:
Under Major Policy Goal: Focus on Economic Development and Fiscal Diversification contained in the adopted FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
CEQA Compliance Statement
This proposed City action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and Section 15303 (New Construction of Small Structures).
BACKGROUND
The property located at 3400 San Pablo Dam Road in the Princeton Plaza shopping center is a City-owned parcel that previously underwent the State-required Surplus Land Act (SLA) process. During that process, the City issued all required notices of availability to eligible affordable housing developers and other qualified entities. No eligible entities submitted a notice of interest, and the site was formally cleared of Surplus Land Act requirements, allowing the City to pursue interim or permanent uses consistent with its economic-development objectives. This status provides the flexibility needed to explore innovative partnerships while long-term planning for the property continues.
Following the completion of the SLA process, staff in the Economic Development & Housing Division (EDH) were approached by Wing Aviation LLC, an autonomous aerial delivery company owned by Alphabet (Google’s parent company), about the potential for establishing a drone delivery staging site in San Pablo. Wing identified the property as uniquely suited for a small-footprint, low-impact logistics node that could serve residential neighborhoods and commercial districts throughout San Pablo and nearby communities.
Wing has launched operations in multiple U.S. cities and internationally, providing on-demand, electric, zero-emission delivery of goods including small parcels, household items, pharmacy products, food, and convenience goods. Their aircraft are electric, quiet, and designed to operate from compact ground facilities similar to the area contemplated in the License Agreement. As a pilot-program partner, San Pablo would be among the first cities in Northern California to participate in a commercial autonomous aerial delivery service and the first California location for Wing.
By locating in San Pablo, Wing aims to:
• Demonstrate the viability of small-format electric drone delivery in dense, built-out communities
• Reduce vehicle trips and delivery-related congestion
• Offer faster and more sustainable delivery for residents
• Explore future opportunities for medical, emergency, or community-serving deliveries
This partnership aligns with the City’s goals to support innovation, sustainability, and expanded resident-serving services, consistent with the City’s ongoing strategic and economic development policies where staff monitor and advance emerging economic programs and technologies.
Economic Development, Housing & Project Mgmt Standing Committee
On July 8, 2026, the EDHPM Standing Committee, consisting of Councilmembers Cruz and Ponce, reviewed the proposed initial terms and conditions of the license agreement with Wing Aviation LLC for use of City-Owned Property at 3400 San Pablo Dam Road. Following its presentation, the Standing Committee recommended it to the City Council for formal consideration and approval.
FISCAL IMPACT
The proposed draft license agreement:
• Grants Wing a non-possessory license to use a defined License Area (approx. 2,900-3,900 sq ft) on the 3400 San Pablo Dam Road parcel.
• Has an initial 24-month term, with one optional 24-month renewal period at Wing’s discretion.
• Includes a monthly license fee of $4,000, beginning 90 days after the Effective Date, with a two-month abatement.
• Allows Wing to install temporary drone-related infrastructure (charging pads, fencing, communications equipment) at their sole cost.
• Requires Wing to maintain insurance and indemnify the City for operations within the License Area.
• Provides termination rights for both parties with applicable notice and cure periods.
• Requires Wing to participate in San Pablo Economic Development and small business networking events.
ATTACHMENT
Att A. Resolution
Att B. License Agreement
Att C. License Area Diagram and Proposed Improvements