GAA
2014
Spring Workshop
Federal Aviation
Administration
Federal Update
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
1
Federal Update
Georgia Block Grant
FY 2014 AIP Program
FY 2015 AIP Program
Georgia AIP Funding
Odds & Ends
Economic Development at Obligated Airports
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
2
Georgia Block Grant
ATL-ADO – Issues grants to Primary Airports
(ABY, AGS, ATL, BQK, CSG, SAV, VLD) and
the Georgia Block Grant to GDOT. We are
their service point for all AIP issues.
GDOT – Issues sub-grants to all General
Aviation Airports and are their service point
for all AIP issues.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
3
FY 2014 AIP Program Update
H.R. 3547 - $3.35B obligation limit ($3.194B for
grants)
Prohibits funds from being spent on baggage system
modifications for EDS machine installation.
Provides for 95% Federal share for FY14 small
airport construction projects that are a phase of a
construction project begun in FY11.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
4
FY 2014 AIP Program Update
Provides for 95% Federal share for Essential Air Svc.
(EAS) and Economically Distressed Areas (EDA).
Provides minimum amount of NPE funds of $1M for
airports serving large air carriers with at least 10,000
annual enplanements (scheduled or unscheduled)
(Sec. 47114(c), "large carrier provision")
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
5
FY 2014 AIP Program Schedule
All Airports Submitted Their Annual CIP’s in January
2013
ADO Established 2014 AIP Program in April 2013
ADO PM’s currently conducting Pre-Grant Conferences
Work with ADO PM on Bidding schedules
First Grants – Approx. May 15th
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
6
FY 2015 AIP Program Schedule
CIP Call Letter Issued in October 2013 (Jan. 1
submittal)
ADO PM’s are Currently Scrubbing
April – Selection of Projects & Disc. Program
We Continue to Encourage Prior-year Design
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
7
million
Georgia AIP Funding
50
45
40
35
30
25
20
15
10
5
0
Entitlements
Discretionary
2011
Georgia Airports Association
March 13, 2014
2012
2013
2014
Federal Aviation
Administration
8
Odds & Ends
New AIP Handbook (FAA Order 5100.38)
• Draft is currently available –
www.faa.gov/airports/aip/aip_handbook
Airports Division SOP’s (23 total)
• Exhibit “A”, ALP, Construction Safety Phasing Plans
AC 150/5300-13A, Change 1, 2/26/14
• Primarily includes updates to the standards for Taxiway Fillet Design
• New Approach and Departure Reference Code (APRC and DPRC)
designations replace Runway Reference Code (RRC).
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
9
Odds & Ends
ARP Digitization
• Electronic Docs
A&E, and Planning Consultant Services For Airport Grant
Projects, AC 150/5100-14
• Update underway
SAMS/DUNS/CCR
• Keep up to date
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
10
Economic Development at
Obligated Airports
Self Sustainability
Revenue Diversion
Land Releases
Review of Non-Aeronautical Leases
RPZ Policy
Planning and Environmental Requirements
Ensuring Safe Approaches at Your Airport
Development Proposal Considerations
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
11
Grant Assurance 24 –
Fee and Rental
Structure
Federal Aviation
Administration
Self-sustainability
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
12
Grant Assurance
24 - Fee and Rental Structure
– It will maintain a fee and rental structure for the
facilities and services at the airport which will make
the airport as self-sustaining as possible under the
circumstances existing at the particular airport,
taking into account such factors as the volume of
traffic and economy of collection.
Georgia Airports Association
March 13, 2014
Federal
•13 Aviation
Administration
13
Self Sustainability
Legislative History
– Section 511(a)(9) of the Airport and Airway
Improvement Act of 1982.
– Codified in 49 USC § 47107(a)(13)
– Section 112(a) of the Federal Aviation
Administration Authorization Act of 1994.
– Amended 49 U.S.C. § 47107(l) to require FAA’s Policy and
Procedures Concerning the Use of Airport Revenues to take
into account whether sponsors – when entering into new or
revised agreements otherwise establishing rates, charges,
and fees – have undertaken reasonable efforts to be self
sustaining in accordance with 49 U.S.C. § 47107(a)(13).
Georgia Airports Association
March 13, 2014
Federal
•14 Aviation
Administration
14
Self-sustainability
Self-sustaining Principle
– Each Federally assisted airport owner/operator is
required by statue and grant assurance to have an
airport fee and rental structure that will make the
airport as self-sustaining as possible under the
particular airport circumstances, in order to minimize
the airport’s reliance on Federal funds and local tax
revenues.
• Recognizes that individual airports may differ in their
abilities to be self-sustaining.
• Maintains the utility of the Federal investment in the airport.
Georgia Airports Association
March 13, 2014
Federal
•15 Aviation
Administration
15
Self-sustainability
Airport Circumstances
– Recognizes that market conditions at some airports
may not permit the sponsor to establish fee’s
sufficiently high enough to recover aeronautical
costs and sufficiently low enough to attract and
retain commercial aeronautical services.
– Sponsor’s decision to charge rates that are below
those needed to achieve self-sustainability in order
to assure that services are provided to the public is
not inherently inconsistent with the federal obligation
to make the airport as self-sustaining as possible
given its particular circumstances.
Georgia Airports Association
March 13, 2014
Federal
•16 Aviation
Administration
16
Self-sustainability
Airport Circumstances –Aeronautical Rates
Potential GA 24
Conflict
Potential GA 22(a)
Conflict
Cost Recovery
Attraction
Potential GA
22(a) Conflict
Georgia Airports Association
March 13, 2014
Potential GA 24
Conflict
Federal
•17 Aviation
Administration
17
Self-sustainability - Aeronautical
• Rates and Charges for the use of the airfield generally may
not exceed the airports capital and operating costs of
providing the airfield.
• Aeronautical fees for landside or non-movement area airfield
facilities (e.g. hangars and aviation offices) may be at a fair
market rate, but are not required to be higher than a level that
reflects the cost of services and facilities. (i.e. somewhere
between cost and Fair Market Value),
• The FAA will not ordinarily investigate the reasonableness of
a general aviation airport’s fees absent evidence of a
progressive accumulation of surplus aeronautical revenues.
Georgia Airports Association
March 13, 2014
Federal
•18 Aviation
Administration
18
Self-sustainability – Non-aeronautical
• The grant assurances do not prohibit an airport
owner from using airport property for nonaeronautical revenue production.
– (Some Surplus Property Deed Restrictions and Sec. 16/23
conveyances do prohibit non-aeronautical use)
• The prime obligation of the owner of a federally
assisted airport is to provide a facility to serve the
public’s interest in aviation.
– This overrides the use of airport property for non-aeronautical
purposes.
• Surplus non-aeronautical revenues can be used to
subsidize aeronautical costs of the airport. (Not
vice versa!!!)
Georgia Airports Association
March 13, 2014
Federal
•19 Aviation
Administration
19
Self-sustainability – Non-aeronautical
• For non-aeronautical uses the FAA
requires:
• The airport receive Fair Market Value
(FMV) rents.
Georgia Airports Association
March 13, 2014
Federal
•20 Aviation
Administration
20
What is Fair Market Value (FMV)?
The cash price that a property would most likely sell for in the
market, assuming that it has a reasonable time for exposure on
that market and assuming it is offered for sale by a
knowledgeable owner - the seller- who is willing but not obligated
to sell to a knowledgeable purchaser who is willing but not
obligated to buy.
To be at FMV, the Property Sale/Lease Must Be:
 Arms Length Transaction (Knowledgeable Buyer and Seller are independent of
one another, no undue influence exerted by either party or by any other source).
 Adequately exposed “For Sale/Lease” on the market (all terms and conditions
disclosed)
 For the Real Property Only. No side deals for other property, loans, personal
property, other debts between the parties, etc..
 For Cash Payment or Equivalent and For Clear Title to the Land.
An Appraiser Analyzes and Documents the Property and Market
Sale/Lease Conditions to Appraise the FMV of a Property
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
21
Self-sustainability – Non-aeronautical
• Fair Market Value (FMV)
– FMV appraisal (typically required for long term nonaero leases and significant non-aero
use/development)
• FAA Advisory Circular (AC) 150/5100-17 CHG 6, Land
Acquisition and Relocation Assistance for Airport
Improvement Program (AIP) Assisted Projects,
• Uniform Standards of Professional Appraisal Practice
(USPAP),
• Uniform Appraisal Standards for Federal Land Acquisition
(UASFLA).
– Restricted Use Appraisals are not acceptable!!
– FMV lease rate is determined by multiplying the
capitalization rate by the appraised fee simple FMV.
• Capitalization rates typically range from 6-12%
Georgia Airports Association
March 13, 2014
Federal
•22 Aviation
Administration
22
Rate Structures
12% Capitalization
Rate
↑
Non-Aero Leases
↓
6% Capitalization
Rate
Fair Market Value (FMV) –
Non Aeronautical Rates ↑
Aeronautical Rates
Nominal Value
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
23
Self-sustainability
Most Common Issues:
 Failure to obtain fair market rental value for nonaeronautical uses of airport property,
 No appraisals/Restricted Use appraisals
 Aeronautical Revenue Surplus
 Cost-free use of airport land by the airport owner (normally
local city or county) (Below FMV use by the airport owner
could also be considered revenue diversion)
Georgia Airports Association
March 13, 2014
Federal
•24 Aviation
Administration
24
Resources
FAA’s Airport Compliance Program
http://www.faa.gov/airports/airport_compliance/
FAA Order 5190.6B, Chapters 17 & 18
Grant Assurances
FAA’s Policy Regarding Airport Rates and Charges
(September 10, 2013)
FAA’s Policy and Procedures Concerning the Use of
Airport Revenue (February 16, 1999)
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
25
FAA Southern Region
Chuck Garrison
Airports Program Manager
404-305-6723
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
26
Grant Assurance 25 –
Airport Revenues
Federal Aviation
Administration
Permitted and
Prohibited Uses of
Airport Revenues
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
27
Grant Assurance
25: Airport Revenues
• All revenues generated by the airport and any local
taxes on aviation fuel established after December
30, 1987, will be expended by it for the capital or
operating costs of the airport; the local airport
system; or other local facilities which are owned or
operated by the owner or operator of the airport
and which are directly and substantially related to
the actual air transportation of passengers or
property; or for noise mitigation purposes on or off
the airport.
Georgia Airports Association
March 13, 2014
Federal
•28 Aviation
Administration
28
Federal Law and Policy
Airport & Airway Improvement Program of 1982
Airport & Airway Safety & Capacity Expansion Act of 1987
FAA Authorization of 1994
FAA Reauthorization Act
of 1996
FAA Modernization &
Reform Act of 2012
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
29
Federal Law and Policy
Codified at 49 U.S.C. § 47107(b) and § 47133
FAA’s Policy and Procedures Concerning the
Use of Airport Revenue (February 16, 1999)
Grant Assurance 25
FAA Order 5190.6B, Airport Compliance
Manual, Chapters 15 & 16
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
30
Rate Structures
12% Capitalization
Rate
↑
Non-Aero Leases
↓
6% Capitalization
Rate
Fair Market Value (FMV) –
Non Aeronautical Rates ↑
Aeronautical Rates
Nominal Value
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
31
What is Airport Revenue?
Revenues paid to or due to the airport for the
use of airport property (fees, charges, rents,
etc).
Revenue from the sale of property and
resources (including mineral, natural, or
agricultural products or water taken from the
airport).***
Revenue from state and local taxes on
aviation fuel (except taxes in effect on
December 30, 1987).
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
32
Permitted Uses of Airport Revenue
An airport may use its revenues for the capital and
operating costs of the airport, the local airport
system, or other local facilities owned and operated
by the airport owner or operator and directly and
substantially related to the air transportation of
passengers or property.
Airport employee salaries
Lobbying and attorneys fees
Utilities
Repayment of the sponsor***
Marketing the airport
Local AIP match
Costs incurred by government
officials***
Insurance
General government costs***
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
33
Prohibited Use of Airport Revenue
Direct or indirect payments which exceed the value of
services/goods received by the airport.
General economic development, marketing, and promotional
activities unrelated to the airport.
Payments in lieu of taxes, impact fees, or other
assessments that exceed the value of services provided.
Payments to compensate nonsponsoring governmental
bodies for lost tax revenues.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
34
Prohibited Use of Airport Revenue
Loans to or investment of airport funds in a state or local
agency at less than the prevailing rate of interest.
Land rental to or use of land by the sponsor for
nonaeronautical purposes at less than FMV.
Use of land by the sponsor for aeronautical purposes rentfree or for nominal value.***
Community activities/events for community purposes.
Direct subsidy to air carrier operations
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
35
Most Common Violations:
Cost allocation plans which overcharge the airport and
subsidize other municipal operations.
Not charging FMV for nonaeronautical activities.
Using airport property for other municipal activities (animal
shelters, firing ranges, jails, vehicle or equipment storage,
etc.) without compensating the airport at FMV.
Poorly structured air carrier incentive programs which
inadvertently subsidize air carriers.
Selling airport land and not compensating the airport.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
36
Permitted v. Prohibited
100% of the salaries &
benefits for full time,
dedicated airport
employees
Georgia Airports Association
March 13, 2014
100% of the salaries &
benefits for city
employees who spend
only 25% of their time
on airport issues
Federal Aviation
Administration
37
Permitted v. Prohibited
Sponsor charges a
nominal lease rate to a
nonprofit aviation
museum on the airport.
Sponsor charges itself
a nominal lease rate to
use airport land for its
emergency operations
call center.
Sponsor charges the
Air National Guard unit
a nominal rate for its
leasehold.
Sponsor enters into a
$1 per year lease with
the county for a golf
course.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
38
Permitted v. Prohibited
The county’s HR
department does all
hiring and personnel
actions for the airport,
so the airport pays an
amount porportionate
to its percentage of
airport employees.
Georgia Airports Association
March 13, 2014
The county’s HR
department provides no
services to the airport,
but charges the airport
10% of their costs as
an administrative fee.
Federal Aviation
Administration
39
Permitted v. Prohibited
Costs associated with
sending members of
the airport commission
to DC to meet with the
FAA and attend a
AAAE conference.
Lobbying fees for an
AIP project.
Attorney fees for a
lawsuit filed against a
project at the airport.
Georgia Airports Association
March 13, 2014
Costs associated with
sending members of
the airport commission
to China to promote
trade.
Lobbying fees for a
highway project.
Attorney fees for a
lawsuit filed against the
sanitation department
Federal Aviation
Administration
40
Permitted v. Prohibited
Membership in the local Funding an airport
chamber of commerce. operator’s float that has
no reference to the
airport in a New Year’s
Day Parade.
Contribution to a golf
tournament sponsored
by the “Friends of the
Airport” committee.
Georgia Airports Association
March 13, 2014
The airport contributes
$50,000 for the city’s
film festival.
Federal Aviation
Administration
41
Permitted v. Prohibited
Marketing or promotional
costs which promote:
- the airport
- airport facilities and
services
- services provided by
airport vendors
- new service and
competition at the
airport
Georgia Airports Association
March 13, 2014
Destination marketing
General tourism
marketing
Federal Aviation
Administration
42
Permitted v. Prohibited
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
43
Permitted v. Prohibited
The airport develops a oneyear air carrier incentive
program which waives
landing fees to air carriers
providing new service to a
specific destination
identified by the airport.
The sponsor uses parking
revenues to pay for the
incentive.
Georgia Airports Association
March 13, 2014
The airport uses landing
fees to pay a discount
carrier to provide service to
the airport.
Federal Aviation
Administration
44
Repayment of Sponsor Contributed
Funds
Airport revenue MAY be used to repay or reimburse an airport
sponsor’s contribution to the airport if the sponsor makes the request
for reimbursement within six (6) years of the date on which it made
the contribution.
A sponsor may only claim interest from the date the FAA determines the
sponsor is entitled to interest.
If the contribution is structured and documented
as a loan at the time it is made, the FAA may
permit repayment over a longer period, with
interest.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
45
Community Use of Airport Property
1. The property is not needed for an aeronautical
purpose;
2. The use enhances community relations;
3. Does not adversely affect the capacity, security,
safety, or operations at the airport;
4. The property involved would not reasonably be
expected to produce more than de minimis revenue;
5. Community use does not preclude reuse of the
property for airport purposes; and
6. Airport revenue is not used to support the capital or
operating costs associated with the community use.
(All conditions must be met)
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
46
Transit Projects
An airport sponsor may charge less than FMV
for public transit terminals, right-of-way, and
related facilities if:
1. The transit system is publically owned and
operated; AND
2. The facilities are directly and substantially
related to the air transportation of
passengers or property.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
47
Ground Access Projects
A sponsor may use airport revenue to pay for
the airport’s share of a ground access project
if:
1. The project qualifies as an integral part of
an airport capital project; AND
2. If the project is owned or operated by the
sponsor and is directly and substantially
related to the air transportation of
passengers and property.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
48
Private Transit Systems
Generally – charged FMV as a
nonaeronautical use
Rarely – in cases where publicly-owned
transit services are extremely limited and a
private transit service provides the primary
source of transportation to the public, making
land available at less than FMV may be ok.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
49
Lawful Diversion of Airport Revenue
Grandfathered obligations
Airport privatization program (49 U.S.C. § 47134)
Certain sale proceeds from the sale of a privately
owned airport to a public sponsor
Certain revenue derived from or generated by
mineral extraction, production, lease, etc.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
50
Penalties for Unlawful Diversion of
Airport Revenue
• Repayment with interest
• Withholding approval of an application for
future grants
• Withholding modification of existing grants
• Withholding payment under existing grants
• Withholding approval of a PFC request
• Withholding any amount from funds otherwise
available to the sponsor from DOT (i.e., transit
or highway grants)
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
51
Penalties for Unlawful Diversion of
Airport Revenue
File suit for enforcement in the U.S. District
Court
Exercise reversionary interests and take title
to all or any part of property conveyed by the
federal government
Seek civil penalties of up to three times the
amount diverted – treble damages
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
52
Resources
FAA’s Airport Compliance Program
http://www.faa.gov/airports/airport_compliance/
FAA Order 5190.6B, Chapters 15 & 16
Grant Assurances
FAA’s Policy and Procedures Concerning the Use of
Airport Revenue (February 16, 1999)
Air Carrier Incentive Program Guidebook
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
53
FAA Southern Region
Chuck Garrison
Airports Program Manager
404-305-6723
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
54
GAA
2014
Spring Workshop
Federal Aviation
Administration
Land Releases
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
55
Land Releases
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
56
Land Releases
Definition
“Release” is defined as the formal, written
authorization discharging and relinquishing
the FAA’s right to enforce an airport’s
contractual obligations.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
57
Land Releases
Grant Assurance 5
Preserving Rights and Powers
Secretary of State approval required for:
– Sell
– Lease
– Encumber or otherwise transfer or dispose of title or
other entrance of property shown on Exhibit A (Keep
Exhibit “A” updated!)
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
58
Land Releases
Grant Assurance 31
Disposal of Land
Airport will dispose of land no longer needed for
intended purpose
• noise compatibility
• Development
Disposition subject to maintaining interest/rights
ensuring use is compatible with airport noise levels
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
59
Land Releases
Grant Assurance 31
Disposal of Land
Land is considered needed if:
• Can be used for aeronautical purposes (including
RPZ) or as noise buffer
• Revenue contributes to financial self-sufficiency of
airport
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
60
Land Releases
FAA Airport Compliance Manual
FAA Order 5190.6B
Chapter 22
Releases from Federal Obligations
•
•
•
•
Laws
Regulations
Policies
Procedures
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
61
Land Releases
Dedicated or Obligated Property
• Property described in agreement
• Airport layout plan (ALP)
• Exhibit A Property Map
AIP and/or surplus or non-surplus property is
federal obligated in perpetuity
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
62
Land Releases
Types of Federally Obligated Land
•
•
•
•
Aeronautical use
Conveyance of federal land
Acquisition with federal revenue
Designated ALP
– Regardless of purpose
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
63
Land Releases
Types of Release Request
• Change in use, operation or designation of
on-airport property
• Release and removal of property from
airport dedicated use
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
64
Land Releases
Continuing Requirements for Disposals
of Airport Property
• Right of Flight
• Restriction on Released property
– Prohibit objects, grown or built, that would be an
obstruction to air navigation
– Prohibit activity that would interfere with flight of
aircraft
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
65
Land Releases
Sponsor Submittal Requirements
•
•
•
•
•
•
•
•
Airport's obligating agreements
Legal description – Word format
Current Appraisal – Fair Market Value ( <1 year)
Type requested (fee simple vs. easement)
Justification (Facts and circumstances)
How request is consistent with the approved ALP
Present condition/use of the property
Proposed use of the land
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
66
Land Releases
Sponsor Submittal Requirements
• Commitment proceeds use exclusively on airport
• Expected use of sale proceeds
• List federal obligations land must be released from
• Environmental analysis as required by FAA Order
5050.4B
• Commitment to update ALP/ Exhibit A
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
67
Land Releases
FAA Review of Release Request
“Prime Concern”
Benefit to Civil Aviation –Future Growth in
Operations
• Capacity of the airport
• Interest of aeronautical users and service providers
• Local, regional and national interest of the airport
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
68
GAA
2014
Spring Workshop
Federal Aviation
Administration
Non-Aeronautical Leases
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
69
Non-Aeronautical
Leases
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
70
Non-Aeronautical Leases
The prime obligation a federally assisted airport
owner is to serve the public’s interest in aviation.
AIP Grant assurances do not prohibit the leasing of
airport property for non-aeronautical revenue
production.
Note, prospective aeronautical tenants willing to lease
property shows a need of the public for the
aeronautical services.
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
71
Non-Aeronautical Leases
• Must receive FAA/GDOT concurrence prior
to lease execution
• Sponsor must demonstrate that all
aeronautical users have been
accommodated.
• Lease must contain reversion clause in
case the property is needed for aeronautical
purposes
Georgia Airports Association
March 13, 2014
Federal Aviation
Administration
72
Non-Aeronautical Leases
• Proposed location must be on area
designated for non-aero use (otherwise a
release is required
• Leases must have Non-transferable clause
• Leases must have Escalation clause
• Must be identified on the ALP
Georgia Airports Association
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Non-Aeronautical Leases
Municipal and Community/Charitable Land
Use
• non-aero lease agreement
• No free Rent!
– Must pay rent at FMV
– Show how airport benefits at a reduced FMV
– Fire & Police have some offsetting value
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Non-Aeronautical Leases
Non-Aeronautical Lease Rates
• Must be at or above Fair Market Value (FMV)
– Appraisals (< 1 year old)
– Competitive Solicitation (RFP)
• Consistent with Policy Regarding the Airport Rates
and Charges
• Make the Airport as self-sustaining as possible
• Consistent with Policy Regarding the Use of Airport
Revenues (Sponsor Use).
• non-aero rents & charges can be used to subsidize
aeronautical costs
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Non-Aeronautical Leases
Non-aeronautical Uses of Airport Resources
• Airport resources should not be used to
support the aeronautical activities unless there
is a means for the airport to recover these
costs.
• Lawn care
• Irrigation
• Leasehold improvements
• Maintenance
• Trash removal
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GAA
2014
Spring Workshop
Federal Aviation
Administration
RPZ
Runway Protection Zone
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
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RPZ
Runway Protection
Zone
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Runway Protection Zone (RPZ)
Definition
The RPZ’s function is to enhance the
protection of people and property on the
ground!
Trapezoidal shaped/Function of aircraft
approach category and approach visibility
minimums
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Runway Protection Zone (RPZ)
Desired Control of RPZ
Airport owner control over RPZ
• Acquisition of land
• Acquisition of sufficient Property interest
– Clearing (and keeping them clear)
– Free of incompatible objects and activities
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Runway Protection Zone (RPZ)
Permissible land uses (No evaluation)
• Farming (meets crop buffers runway to crop distance
standards)
– Must be evaluated for wildlife impacts
• Irrigation channels that do not attract birds
• Airport service roads controlled by the airport operator
• Underground facilities that meet other FAA design criteria (eg.
RSA)
• Unstaffed NAVAIDs and facilities considered fixed-by-function
All other use must be evaluated/approved by the FAA
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Runway Protection Zone (RPZ)
FAA’s Evaluation and Approval of RPZ Land
Use Guidelines
• Currently being developed
• Procedures for the Region/ADO review of proposed
land uses in the RPZ
• Direction on the evaluation of existing land uses in
an RPZ
• Methods and procedures available to communities
to protect the RPZ and prevent the congregation of
people and property on the ground.
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Runway Protection Zone (RPZ)
Interim Guidance on Land Uses Within RPZ
Guidelines addresses new or modified land
uses to a RPZ and proposed changes to RPZ
size and location.
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Runway Protection Zone (RPZ)
Land use in RPZ review requires
coordination with national office for uses
that enter the RPZ as a result of:
• Airfield project
• Change in critical design aircraft increasing
RPZ
• New or revised instrument approach procedure
increasing RPZ
• Local development proposal in the RPZ
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Runway Protection Zone (RPZ)
Types of land use requiring APP-400
coordination
•
•
•
•
Building and structures
Recreational land use
Transportation facilities
Fuel and hazardous material studies (above and
below ground)
• Wastewater treatment facilities
• Above ground utility infrastructure including solar
panels
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Runway Protection Zone (RPZ)
Initial Steps
Region/ADO works with sponsor to
develop full range of alternatives
• Relocate proposed land use outside of RPZ
• Minimize impacts to RPZ
• Mitigate risk to people and property on
ground
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Runway Protection Zone (RPZ)
Alternative Documentation for APP-400
• Description of alternatives
• Cost estimates
• Feasibility assessment of alternative in terms of
cost, constructability, etc.
• Preferred alternative
• Identification of impacted transportation agencies
• Analysis of portion and percentage of RPZ affected
• Analysis issues affecting sponsor control
• Other relevant factors
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GAA
2014
Spring Workshop
Federal Aviation
Administration
Planning and Environment
Requirements
Safe Approaches
Presented to: Georgia Airports Association
By: Atlanta Airports District Office
Date: March 13, 2014
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Planning & Environmental Requirements for Change on Your Airport
First Things First
Clearly Define the Role and Mission of Your Airport in your Master Plan
Outline a Strategic Aeronautical vs. Non-Aeronautical Development Plan
ALL Proposed Changes ON Your Airport Property Require:
- An Airspace Analysis (7460-1)
- An Airport Layout Plan (ALP) Update
- An Environmental Determination
All Steps MUST be Completed PRIOR to Construction
Despite Funding Applications
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Planning & Environmental Requirements for Change on Your Airport
Airspace Analysis
Submit 7460-1Online to Begin Airspace Analysis
Process
https://oeaaa.faa.gov/oeaaa/external/portal.jsp
Evaluates Potential Impacts to Airspace,
Approaches, Navaids, Airfield Design and
Safety Criteria, and Land Use Compatibility
Approximately 45-60+ Days
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Planning & Environmental Requirements for Change on Your Airport
Airport Layout Plan (ALP) Update
Any Change to an ALP is a “Federal Action”
The Prior Airspace Analysis (7460-1) Allows for Interim
Updates to the ALP Saving Time & Resources
The ALP is “Pen & Inked” by the ADO/ DOT Pending
Airspace Analysis Completion
FAA’s Airport Database is Updated with Critical Data
ALP is Formally Revised at Next Update Cycle
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Planning & Environmental Requirements for Change on Your Airport
Environmental Determination
An Environmental Determination Must be Approved by
FAA/ DOT as Required
Review & Approval is Based on Data Accuracy, Project
Complexity & Sensitivity, and Agency Response
Categorical Exclusions (Catexes) May be Signed by
FAA/ DOT in a Few Days/ Weeks While More Detailed
Studies (EA’s/ EIS’s) May Require Months/ Years.
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Planning & Environmental Requirements for Change on Your Airport
Getting on Board
Be Aware of the Requirements
Be Proactive with Compatible Airport
Development
Be Consistent Among Partners
Be Wise with Airport Development Decisions
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Ensuring Safe Approaches at Your Airport
FAA Flight Procedures (FPT) has begun evaluating airports
Nationwide for existing safety hazards in 20:1 approaches.
FPT is working with airports to verify obstruction data and define
needed approach improvements to maintain published
approaches.
Airport approach surfaces fall both on- and off-airport property,
but are the responsibility of the Airport per FAA Engineering
Brief #91.
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Ensuring Safe Approaches at Your Airport
AIP can only be used once historically to clear obstructions in an
area, it is otherwise considered a “maintenance” responsibility of
the sponsor.
Most airports must bear the cost of this on-going, critical safety
commitment.
Where AIP is eligible for obstruction mitigation, it takes early
ADO/ DOT coordination (9-12 months) to provide assistance.
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The “Do Nothing” Alternative - What’s the Risk?
Without clear approaches, your Airport & it’s users are at risk of :
~ Aircraft Accidents, Incidents, Liability Lawsuits and Death,
~ Compromise of Healthy Aircraft Operations, Consciences Airport
Users, and a Growing Aircraft Fleet Mix,
~ Loss of Safe Airport Access, Pilot Training, Local Emergency Service
and Community Event Environments,
~ Decrease in Self-Sustaining Revenues from Fuel Sales, Facility
Rentals, Maintenance and Other Services Vital to Airport
Sustainability .
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What Can You Do To Stay Out of Trouble?
Use FAA’s free Surface Analysis Visualization (SAV) Tool to evaluate your 20:1 surfaces.
It is part of FAA’s free Geographic Information System (GIS) - get logged on & in the groove.
FAA’s free GIS portal houses historic & newly collected obstacle survey data for your airport.
SAV aids in determining existing obstacle issues that are potential safety concerns.
It identifies low, medium and high obstructions at your airport that require attention.
Verify your obstacle data, make obstacle data updates, and create a Mitigation Plan for free.
It’s FREE, I Tell You !
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What can you do to stay out of trouble?
- Coordinate actions with FPT and ADO/ DOT as necessary
- Be proactive by working with your ADO/ DOT PM’s early to determine
funding options where eligible in advance of obstruction issues
- Be responsive and collaborative when working with FPT when issues arise
- Commit to an annual airspace evaluation, mitigation program and
information database maintenance
- Ask Airport Sponsors to dedicate an annual budget to maintain safe
approaches to:
* Ensure maximum airport safety,
* Avoid liability,
* Maximize airport economic growth and development, and
* Promote continual safe access for your Airport and community.
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One More Thing Before We Go . . .
- SAV only analyzes the 20:1 surface (additional surfaces require additional
analysis.)
- GIS portal & tools are available to all NPIAS Airports for FREE, don’t
overlook it.
- For each mitigation action on airport, an environmental determination is
required prior to the action.
- Update GIS database regularly to reflect current obstacle conditions.
Without your best approach,
you are not offering your Airport’s best.
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Economic
Development at
Obligated Airports
Federal Aviation
Administration
Safe, Efficient, and
Compatible
Development
Presented to: Georgia Airports Association
By: Chuck Garrison, Program Manager
Date: March 13, 2014
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Obligations
Grant Assurance 19 – Operation and Maintenance
Grant Assurance 20 – Hazard Removal and Mitigation
Grant Assurance 21 – Compatible Land Use
Grant Assurance 29 – Airport Layout Plan
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Grant Assurance
19: Operation and Maintenance
 Will operate the airport and all facilities at all times in a
safe and serviceable condition,
 Will not cause or permit any action which would interfere
with its use for airport purposes,
 Will not temporarily close the airport for non-aeronautical
purposes without approval by the Secretary,
 Will promptly mark and light hazards resulting from airport
conditions (including temporary hazards),
 Will promptly notify airmen of any conditions affecting
aeronautical use of the airport.
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Grant Assurance
20: Hazard Removal and Mitigation
– It will take appropriate action to assure that such terminal
airspace as is required to protect instrument and visual
operations to the airport (including established minimum flight
altitudes) will be adequately cleared and protected by
removing, lowering, relocating, marking, or lighting or otherwise
mitigating existing airport hazards and by preventing the
establishment or creation of future airport hazards including onairport development such as hangars and terminals.
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Grant Assurance 20
Most Common Issues
– Failure to clear, or maintain clear, runway approach and
departure surfaces.
– Failure to file FAA Form 7460-1 for on airport development.
– Failure to require the submission of FAA Form 7460-1 for off
airport development within the sponsor’s jurisdiction which
meets the reporting criteria.
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Grant Assurance
21: Compatible Land Use
– It will take appropriate action, to the extent reasonable,
including the adoption of zoning laws, to restrict the use of land
adjacent to or in the immediate vicinity of the airport to activities
and purposes compatible with normal airport operations,
including landing and takeoff of aircraft. In addition, if the
project is for noise compatibility program implementation, it will
not cause or permit any change in land use, within its
jurisdiction, that will reduce its compatibility, with respect to the
airport, of the noise compatibility program measures upon
which Federal funds have been expended.
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Compatible Land Use
– The use of adjacent property that
neither adversely affects flight
operations from the airport nor is itself
adversely affected by such flight
operations.
• In most cases the adverse effect of flight operations
on adjacent land results from exposure of noise
sensitive development, such as residential areas, to
aircraft noise and vibration.
• A land use that adversely effects flight operations is
that which creates or contributes to a flight hazard.
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Incompatible Land Uses
– Land uses that allow tall structures, block the line
of sight from the control tower to all parts of the
airfield, inhibit pilot visibility (such as glaring lights,
smoke, etc..), produce electronic aberrations in
navigational guidance systems, or that would tend
to attract birds are examples of things that would
be considered incompatible land uses.
– Some incompatible land uses can be mitigated
and some cannot.
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Hazardous Wildlife Attractants
• FAA Policy & Guidance In Place for Many Years
– GA 20 Hazard Removal and Mitigation
– GA 21 Compatible Land Use
• AC 150/5200-33 (Hazardous Wildlife Attractants on or Near Airports)
• AC 150/5200-34 (Construction or Establishment of Landfills Near Public
Airports)
• US Airways Flight 1549 “Miracle on the Hudson”
– Brought bird strikes and hazardous wildlife attractants into national
focus.
– Sparked a new initiatives to identify and mitigate wildlife on or near
airports.
•
•
•
•
•
Redesign of FAA’s Wildlife Hazard Website
National Bird Strike Database – Made Available to Public
Updates to Hazardous Wildlife Attractants and Reporting Wildlife Aircraft Strike (AC’s)
Multiple Cert Alerts
New AC in Development – Protocol for the Conduct and Review of Wildlife Hazard Site
Visits, Wildlife Hazard Assessments, and Wildlife Hazard Management Plans.
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Grant Assurance 21
Most Common Issues
– Allowing incompatible development adjacent to
airport property (Residential, Schools, Hazardous
Wildlife Attractants, etc…)
– Failing to restrict residential development of noise
sensitive areas adjacent to the airport.
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Grant Assurance
29: Airport Layout Plan
• Ensure conformance to design standards and future plans
• Identifies proposed allocation of airport land to specific
operational and support functions
• Adverse impacts on safety, utility or efficiency of airport must
be eliminated
• Must be kept up to date.
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Safety, Efficiency, and/or Compatibility
Issues With Development Proposals
Potential Grant Assurance Conflicts - 5, 19, 20, 21, 29
– Failure to adhere to FAA guidance/design standards,
– Failure to prevent, restrict or mitigate incompatible
development,
– Failure to mitigate or remove hazards identified by the FAA
which are within the jurisdictional control of the airport sponsor,
– Failure to make reasonable efforts to prevent the establishment
of an airport hazard that is not within the airport sponsor’s
jurisdiction.
• Failing to take any action (“Its out of our Jurisdiction”) –Not enough!!!
• Should notify the non-sponsoring jurisdiction of FAA guidance
• Should make efforts to prevent or mitigate the hazard as much as
possible.
• Document your efforts!!!
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Development Proposals – Most
Common Issues
– Typically given very short notice of proposal and need
quick turn-around.
– Airspace review
• Incomplete/incorrect data provided
• Not studied and/or hazards not mitigated/removed
• Typically 45-60 day review period, but can take longer.
– Incompatible features
• Wildlife Attractants, Glare, Smoke, Navigational Interference, etc..
• Not studied and/or adverse affects not mitigated/removed.
• Mitigations and /or operational restrictions may need to be considered in
the lease agreement.
• Some studies can take several months to complete.
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Development Proposals – Most
Common Issues
– Non-aeronautical use not depicted on ALP
• Change in Use – 30-Day Federal Register Notice + 10-15 days to process.
– Request to sell airport property to the proponent/developer
• Release – 30 Day Federal Register Notice + 10-15 days to process.
– No Environmental Determination
• Duration depends on the circumstances
– Non-Aeronautical Lease Review
• Incomplete, Non-compliant terms/conditions/provisions
• Typically about 5-10 business days for review.
– No FMV Appraisals or Rate Setting Methodology
• Typically about 30 days for FMV appraisals.
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Development Proposal – Case Study
Pot Of Gold Regional Airport ($$$)
70 Based Aircraft,
100,000 Annual Operations,
(2) 6,500 ft. Rwys (9/27 & 18/36)
ILS Approaches to Rwy 9, Rwy 27 & Rwy 36
2 Full Service Flight Training Schools
5 Scheduled Commercial Flights Per Day
• Arrivals 8am, Noon, 5pm, 8pm, and 11pm
• Departures 9am, 1pm, 6pm, 9pm, and Midnight
1000 acres (all Surplus property)
All property on ALP designated Aeronautical
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Development Proposal – Case Study
The Sponsor for Pot of Gold Regional Airport ($$$)
contacts the ADO to inquire about the possibility
of leasing the southern 500 acres of vacant airport
property to SHAM-Rock Development for a first
class “green” luxury resort.
ADO asks sponsor to provide additional details on the
proposal for review and consideration.
6- Months Later – 1 Page written proposal e-mailed to ADO
with a 30 page fill-in the blank lease agreement (Marked
Final). E-mail message says that time is of the essence and
that the agreement needed to be executed yesterday.
A review of the proposal and draft lease agreement reveals
the following development characteristics and concerns:
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Development Proposal – Case Study
–
–
–
–
–
–
–
–
–
–
–
–
–
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$1 Billion Investment,
Will Create 500+ Jobs in the Community,
15 Story Resort Hotel and Conference Center,
18 Hole Championship Golf Course with Lights for Night Golf,
State of the Art Outdoor Amphitheater and Laser Light Show
(Performances 8pm to Midnight daily),
5 Outdoor Olympic Size Swimming Pools,
5-Star Organic Farm to Table Restaurant,
Storm Water Retention Ponds Double as Stocked Fishing Ponds for
Farm to Table Restaurant,
50+ acres designated for croplands for Farm to Table Restaurant,
Onsite waste water treatment and recovery system,
(3) 20MW Solar Farms with Pivoting Panels to Capture Max. Sunlight,
(5) 8MW Vestas V164 Wind Turbines (220m tall x 164m wide)
250+ acres of the property will be designated as Wildlife/Nature
preserve for environmental credits.
Compost Lot and Recycling Facility
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Development Proposal – Case Study
Review of Draft Lease Reveals the Following:
– SHAM-Rock seeks 99 yr. lease at nominal ($1/Yr) rate,
– All lease payments to and taxes must be reinvested in the resort,
– Rent abatement for 1st 5 yrs of lease, as well as rent abatement during
periods when resort is shut down for repairs,
– Airport to pay for all of SHAM-Rock’s utility connection costs,
– Airport is required to purchase all excess power from the resort at
market rate,
– Airport to pay SHAM-Rock $100K/yr. for resort marketing and
promotion,
– Airport to fund incentive program designed to subsidize to SHAMRock Air and other airlines that serve resort. (Subsidy to be provided
on a per customer basis).
– Rent free space in the airport terminal for resort marketing and sales
office.
– SHAM-Rock retains all environmental credits.
– Free airport parking for SHAM-Rock customers and employees.
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Questions
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Thank You!
Atlanta
Airports
District
Office
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