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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. Part A General Part B Duration and Applicability Useful life, not more than 20 years

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Airport Improvement Program

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  1. Airport Improvement Program Overview of Grant Assurances & Common Mistakes 2009 Federal Agency Update Joelle Briggs, Regional Compliance Program Mgr. January 14, 2009

  2. 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

  3. Common Mistakes • Residential Use • Through-the-Fence Access • Revenue Diversion • Economic Non-Discrimination • Exclusive Rights

  4. On-Airport Residential Use

  5. Is an incompatible land use And must be terminated, even if its making money…

  6. 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

  7. Residential TTF Access

  8. 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

  9. 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

  10. #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

  11. 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

  12. #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.

  13. #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.

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