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Airport Improvement Program. Overview of Grant Assurances & Common Mistakes. 2009 Federal Agency Update. Joelle Briggs, Regional Compliance Program Mgr. January 14, 2009. Airport Sponsor Assurances. Part A General Part B Duration and Applicability Useful life, not more than 20 years

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Airport improvement program

Airport Improvement Program

Overview of Grant Assurances & Common Mistakes

2009 Federal Agency Update

Joelle Briggs, Regional Compliance Program Mgr.

January 14, 2009


Airport sponsor assurances
Airport Sponsor Assurances

  • Part A General

  • Part B Duration and Applicability

    • Useful life, not more than 20 years

    • No limit on land  

  • Part C Sponsor Certification

    • 39 Assurances to abide by

    • General Federal Requirements (Legislation, EO, Regulations)

      • Uniform Relocation Assistance & Real Property Acquisition Act of 1970, 42 USC 4601, et seq.

      • Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs, 49 CFR Part 24

      • Sponsor Certification


Common mistakes
Common Mistakes

  • Residential Use

  • Through-the-Fence Access

  • Revenue Diversion

  • Economic Non-Discrimination

  • Exclusive Rights



Is an incompatible land use
Is an incompatible land use

And must be terminated, even if its making money…


Residential use
Residential Use

Grant Assurances Potentially Implicated

  • #5, Rights and Powers

  • #19, Operation and Maintenance

  • #21, Compatible Land Use

  • #24, Fee and Rental Structure

  • #25, Airport Revenue



Where does faa stand
Where Does FAA Stand?

Residential TTF Access –

Incompatible Land Use

Grant Assurance Violation

Non-Residential –

Notify FAA and get review of agreement

Minimum Standards AC 150/5190-7


Through the fence access issues
Through-the-Fence Access Issues

TTF Access in Perpetuity –

#5, Preserving Rights & Powers

Access Fee Not at Parity –

#22, Economic Non-discrimination

#24, Fee & Rental Structure

Lose hangar leases to TTF operator

Access is Not Subordinate to Grant Assurances

#5, Preserving Rights & Powers

Monitoring compliance

Commercial Service TTF

#22, Economic Non-discrimination

#24, Fee & Rental Structure -- Fuel Flowage Fee


25 airport revenues 47107 l
#25. Airport Revenues§ 47107(L)

  • All revenues generated by the airport and any local taxes on aviation fuel, established after 12/30/87, will be expended for the capital or operating costs of the airport…

  • Policy published in February 1999


Airport revenue permitted v prohibited uses

Permitted

Capital or operating costs of the airport

Cost of marketing the airport

Share of promotional expenses

Certain directly or indirectly allocated costs.

Reimbursement to sponsor for debts 6 years prior.

Prohibited

Paying more for services provided by the sponsor than reasonably worth

Giving away use of airport property for charitable purposes.

Sponsor uses property without paying for it.

Maintenance or storage facility, equipment use

Airport RevenuePermitted v. Prohibited Uses


22 economic nondiscrimination 47107 a 1 5
#22, Economic Nondiscrimination47107(a)(1-5)

Make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport.


23 exclusive rights 47107 a 4 ac 150 5190 6
#23, Exclusive Rights47107(a)(4)AC 150/5190-6

  • Will not permit or grant, either directly or indirectly, an exclusive right to conduct any aeronautical activities at the airport.

  • Examples –

    • Exclusive Right in the FBO lease;

    • FBO leases all available space although not immediately used.


Resourceswww.faa.gov/airports_airtraffic/airports/regional_guidance/northwest_mountain/airport_obligations/

  • Grant Assurances

  • Compliance Handbook, Order 5190.6A

  • Exclusive Rights AC 150/5190-6

  • Policy and Procedures on Revenue Use


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