How Merced County plans to bring more self-driving car testing to Atwater’s Castle Airport
Maturing plans for self-driving vehicle testing at the former Castle Air Force Base in Atwater are putting Merced County on a global map for a niche — but lucrative — market, county officials say.
Last week, the Merced County Board of Supervisors unanimously agreed to commence the search for a private third party expert to take over autonomous vehicle projects at Castle. Thus far, operations have been organized by the county.
This means by spring of 2021, a new operator will be slated to assume designing, scheduling, marketing and facilitating autonomous vehicle functions, county staff estimate.
“This is really multiple years in envisioning the concept, and now we’re at the point where the ball is rolling a little quicker,” said Mark Hendrickson, Merced County director of community and economic development.
“This is an economic development project of consequence.”
Dubbed the California AutoTech Testing and Development Center, several companies have used Castle’s sprawling acreage to test self-driving vehicles for some years now. Industry giants like Google rent space for a mock urban landscape to test its autonomous cars project, known as Waymo.
Prime location
Enticed by Castle’s prime location in the center of the state, just a few hours drive from Silicon Valley, an increasing number of parties have reached out to the county with interest. That has included both big names and small startups, Hendrickson said.
“It’s such a competitive industry right now, because so many people are vying for it,” said County Supervisor Daron McDaniel.
As interest evolves, so too must the testing and development center at Castle.
Different companies have unique needs and timelines. The goal is for the autonomous vehicle center to be designed by experts for the industry, ensuring that the facility is favorable for multiple kinds of users, Hendrickson said.
That is why a third party expert in the field is now being sought to assume operational leadership from the county.
The cost to locate that industry expert will be covered via a $6.5 million grant secured two budget years ago by Assemblymember Adam Gray, D-Merced. Gray has been an instrumental champion in progressing the autonomous vehicle industry locally, several county officials have said.
The search for potential candidates is facilitated by a contract with KPMG, LLP. The global firm has international connections to the self-driving automobile industry, positioning the auto-tech center to be handed off to an adept operator, McDaniel said.
“We do expect there will be some significant competition for this,” he said.
Castle to bring more jobs, county officials say
The county has been working with KPMG since March, when it was contracted to undertake market sounding and identify a viable commercial structure for developing Castle’s autonomous vehicle center. The firm found significant interest from prospective operators and private sector investors.
Once the new operator takes over, the arrangement will function as a private company leasing the property from the county.
As the burgeoning autonomous vehicle business ripens locally, McDaniel said he expects it will bring higher paying jobs to Merced County. It also presents more opportunities for UC Merced and Merced College students, graduates and staff.
Looking forward, self-driving vehicle testing is not the only vision county leadership has for Castle.
The developing Atwater-Merced Expressway and continuing conversations with the Port of LA and the BNSF Railroad uniquely position Castle to become multi-mobile facility for manufacturing and shipping with highway, freight and air travel, Hendrickson said.
“This project is under the umbrella of a larger Castle vision,” Hendrickson said.
County officials also hope to continue growing Castle’s entertainment amenities, like The Tarmac, a new taproom by Blaker Brewing. “Castle’s future, most certainly I believe is bright,” Hendrickson said.
