Federal AviationAdministration
1Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGAA
2014 Spring Workshop
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
Federal Update
Federal AviationAdministration
2Georgia Airports Association March 13, 2014
Federal Update
Georgia Block Grant
FY 2014 AIP Program
FY 2015 AIP Program
Georgia AIP Funding
Odds & Ends
Economic Development at Obligated Airports
Federal AviationAdministration
3Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
4Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
5Georgia Airports Association March 13, 2014
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")
Federal AviationAdministration
6Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
7Georgia Airports Association March 13, 2014
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
FY 2015 AIP Program Schedule
Federal AviationAdministration
8Georgia Airports Association March 13, 2014
Georgia AIP Fundingm
illio
n
2011 2012 2013 20140
5
10
15
20
25
30
35
40
45
50
EntitlementsDiscretionary
Federal AviationAdministration
9Georgia Airports Association March 13, 2014
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).
Federal AviationAdministration
10Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
11Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
12Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGrant Assurance 24 –
Fee and Rental Structure
Self-sustainability
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
Federal AviationAdministration
13Georgia Airports Association March 13, 2014
• 13
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.
Federal AviationAdministration
14Georgia Airports Association March 13, 2014
• 14
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).
Federal AviationAdministration
15Georgia Airports Association March 13, 2014
• 15
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.
Federal AviationAdministration
16Georgia Airports Association March 13, 2014
• 16
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.
Federal AviationAdministration
17Georgia Airports Association March 13, 2014
• 17
Self-sustainability
Airport Circumstances –Aeronautical Rates
Attraction Cost Recovery
Potential GA 22(a) Conflict
Potential GA 24 Conflict
Potential GA 22(a) Conflict
Potential GA 24 Conflict
Federal AviationAdministration
18Georgia Airports Association March 13, 2014
• 18
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.
Federal AviationAdministration
19Georgia Airports Association March 13, 2014
• 19
Self-sustainability – Non-aeronautical
• The grant assurances do not prohibit an airport owner from using airport property for non-aeronautical 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!!!)
Federal AviationAdministration
20Georgia Airports Association March 13, 2014
• 20
Self-sustainability – Non-aeronautical
• For non-aeronautical uses the FAA requires:
• The airport receive Fair Market Value (FMV) rents.
Federal AviationAdministration
21Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
22Georgia Airports Association March 13, 2014
• 22
Self-sustainability – Non-aeronautical• Fair Market Value (FMV)
– FMV appraisal (typically required for long term non-aero 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%
Federal AviationAdministration
23Georgia Airports Association March 13, 2014
Rate Structures
Fair Market Value (FMV) –Non Aeronautical Rates ↑
Aeronautical Rates
Nominal Value
12% Capitalization Rate
6% Capitalization Rate
↑
Non-Aero Leases
↓
Federal AviationAdministration
24Georgia Airports Association March 13, 2014
• 24
Self-sustainability
Most Common Issues:
Failure to obtain fair market rental value for non-aeronautical 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)
Federal AviationAdministration
25Georgia Airports Association March 13, 2014
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)
Federal AviationAdministration
26Georgia Airports Association March 13, 2014
FAA Southern Region
Chuck Garrison
Airports Program Manager
404-305-6723
Federal AviationAdministration
27Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGrant Assurance 25 –
Airport Revenues
Permitted and Prohibited Uses of Airport Revenues
March 13, 2014
Georgia Airports Association
Atlanta Airports District Office
Federal AviationAdministration
28Georgia Airports Association March 13, 2014
• 28
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.
Federal AviationAdministration
29Georgia Airports Association March 13, 2014
Federal Law and Policy
FAA Authorization of 1994
FAA Reauthorization Act of 1996
FAA Modernization & Reform Act of 2012
Airport & Airway Improvement Program of 1982
Airport & Airway Safety & Capacity Expansion Act of 1987
Federal AviationAdministration
30Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
31Georgia Airports Association March 13, 2014
Rate Structures
Fair Market Value (FMV) –Non Aeronautical Rates ↑
Aeronautical Rates
Nominal Value
12% Capitalization Rate
6% Capitalization Rate
↑
Non-Aero Leases
↓
Federal AviationAdministration
32Georgia Airports Association March 13, 2014
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).
Federal AviationAdministration
33Georgia Airports Association March 13, 2014
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
Utilities
Marketing the airport
Local AIP match
Insurance
Lobbying and attorneys fees
Repayment of the sponsor***
Costs incurred by government officials***
General government costs***
Federal AviationAdministration
34Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
35Georgia Airports Association March 13, 2014
Prohibited Use of Airport RevenueLoans 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 rent-free or for nominal value.***
Community activities/events for community purposes.
Direct subsidy to air carrier operations
Federal AviationAdministration
36Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
37Georgia Airports Association March 13, 2014
Permitted v. Prohibited
100% of the salaries & benefits for full time, dedicated airport employees
100% of the salaries & benefits for city employees who spend only 25% of their time on airport issues
Federal AviationAdministration
38Georgia Airports Association March 13, 2014
Permitted v. Prohibited
Sponsor charges a nominal lease rate to a nonprofit aviation museum on the airport.
Sponsor charges the Air National Guard unit a nominal rate for its leasehold.
Sponsor charges itself a nominal lease rate to use airport land for its emergency operations call center.
Sponsor enters into a $1 per year lease with the county for a golf course.
Federal AviationAdministration
39Georgia Airports Association March 13, 2014
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.
The county’s HR department provides no services to the airport, but charges the airport 10% of their costs as an administrative fee.
Federal AviationAdministration
40Georgia Airports Association March 13, 2014
Permitted v. ProhibitedCosts 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.
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 AviationAdministration
41Georgia Airports Association March 13, 2014
Permitted v. Prohibited
Membership in the local chamber of commerce.
Contribution to a golf tournament sponsored by the “Friends of the Airport” committee.
Funding an airport operator’s float that has no reference to the airport in a New Year’s Day Parade.
The airport contributes $50,000 for the city’s film festival.
Federal AviationAdministration
42Georgia Airports Association March 13, 2014
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
Destination marketing
General tourism marketing
Federal AviationAdministration
43Georgia Airports Association March 13, 2014
Permitted v. Prohibited
Federal AviationAdministration
44Georgia Airports Association March 13, 2014
Permitted v. Prohibited
The airport develops a one-year 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.
The airport uses landing fees to pay a discount carrier to provide service to the airport.
Federal AviationAdministration
45Georgia Airports Association March 13, 2014
Repayment of Sponsor Contributed FundsAirport 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.
Federal AviationAdministration
46Georgia Airports Association March 13, 2014
Community Use of Airport Property1. 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)
Federal AviationAdministration
47Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
48Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
49Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
50Georgia Airports Association March 13, 2014
Lawful Diversion of Airport Revenue
Grandfathered obligations
Airport privatization program (49 U.S.C. § 47134)
Certain sale proceeds from the sale of a privatelyowned airport to a public sponsor
Certain revenue derived from or generated bymineral extraction, production, lease, etc.
Federal AviationAdministration
51Georgia Airports Association March 13, 2014
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)
Federal AviationAdministration
52Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
53Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
54Georgia Airports Association March 13, 2014
FAA Southern Region
Chuck Garrison
Airports Program Manager
404-305-6723
Federal AviationAdministration
55Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGAA
2014 Spring Workshop
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
Land Releases
Federal AviationAdministration
56Georgia Airports Association March 13, 2014
Land Releases
Federal AviationAdministration
57Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
58Georgia Airports Association March 13, 2014
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!)
Federal AviationAdministration
59Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
60Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
61Georgia Airports Association March 13, 2014
Land Releases
FAA Airport Compliance Manual
FAA Order 5190.6B
Chapter 22
Releases from Federal Obligations• Laws• Regulations• Policies• Procedures
Federal AviationAdministration
62Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
63Georgia Airports Association March 13, 2014
Land Releases
Types of Federally Obligated Land
• Aeronautical use• Conveyance of federal land• Acquisition with federal revenue• Designated ALP
– Regardless of purpose
Federal AviationAdministration
64Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
65Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
66Georgia Airports Association March 13, 2014
Land ReleasesSponsor 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
Federal AviationAdministration
67Georgia Airports Association March 13, 2014
Land ReleasesSponsor 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
Federal AviationAdministration
68Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
69Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGAA
2014 Spring Workshop
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
Non-Aeronautical Leases
Federal AviationAdministration
70Georgia Airports Association March 13, 2014
Non-Aeronautical Leases
Federal AviationAdministration
71Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
72Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
73Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
74Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
75Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
76Georgia Airports Association March 13, 2014
Non-Aeronautical LeasesNon-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
Federal AviationAdministration
77Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGAA
2014 Spring Workshop
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
RPZ
Runway Protection Zone
Federal AviationAdministration
78Georgia Airports Association March 13, 2014
RPZ
Runway Protection Zone
Federal AviationAdministration
79Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
80Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
81Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
82Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
83Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
84Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
85Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
86Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
87Georgia Airports Association March 13, 2014
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
Federal AviationAdministration
88Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationGAA
2014 Spring Workshop
Georgia Airports Association
Atlanta Airports District Office
March 13, 2014
Planning and Environment Requirements
Safe Approaches
Federal AviationAdministration
89Georgia Airports Association March 13, 2014
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
Planning & Environmental Requirements for Change on Your Airport
First Things First
All Steps MUST be Completed PRIOR to Construction Despite Funding Applications
Federal AviationAdministration
90Georgia Airports Association March 13, 2014
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
Planning & Environmental Requirements for Change on Your Airport
Airspace Analysis
Federal AviationAdministration
91Georgia Airports Association March 13, 2014
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
Planning & Environmental Requirements for Change on Your Airport
Airport Layout Plan (ALP) Update
Federal AviationAdministration
92Georgia Airports Association March 13, 2014
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.
Planning & Environmental Requirements for Change on Your Airport
Environmental Determination
Federal AviationAdministration
93Georgia Airports Association March 13, 2014
Be Aware of the Requirements
Be Proactive with Compatible Airport Development
Be Consistent Among Partners
Be Wise with Airport Development Decisions
Planning & Environmental Requirements for Change on Your Airport
Getting on Board
Federal AviationAdministration
94Georgia Airports Association March 13, 2014
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.
Ensuring Safe Approaches at Your Airport
Federal AviationAdministration
95Georgia Airports Association March 13, 2014
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.
Ensuring Safe Approaches at Your Airport
Federal AviationAdministration
96Georgia Airports Association March 13, 2014
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 .
The “Do Nothing” Alternative - What’s the Risk?
Federal AviationAdministration
97Georgia Airports Association March 13, 2014
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 !
What Can You Do To Stay Out of Trouble?
Federal AviationAdministration
98Georgia Airports Association March 13, 2014
- 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.
What can you do to stay out of trouble?
Federal AviationAdministration
99Georgia Airports Association March 13, 2014
- 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.
One More Thing Before We Go . . .
Without your best approach, you are
not offering your Airport’s best.
Federal AviationAdministration
100Georgia Airports Association March 13, 2014
Presented to:
By:
Date:
Federal AviationAdministrationEconomic
Development at Obligated Airports
Safe, Efficient, and Compatible Development
Georgia Airports Association
March 13, 2014
Chuck Garrison, Program Manager
Federal AviationAdministration
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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
Federal AviationAdministration
102Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
103Georgia Airports Association March 13, 2014
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 on-airport development such as hangars and terminals.
Federal AviationAdministration
104Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
105Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
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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 bysuch 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.
Federal AviationAdministration
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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.
Federal AviationAdministration
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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.
Federal AviationAdministration
109Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
110Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
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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!!!
Federal AviationAdministration
112Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
113Georgia Airports Association March 13, 2014
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.
Federal AviationAdministration
114Georgia Airports Association March 13, 2014
Development Proposal – Case StudyPot Of Gold Regional Airport ($$$)
70 Based Aircraft,
100,000 Annual Operations,
(2) 6,500 ft. Rwys (9/27 & 18/36)
ILS Approaches to Rwy 9, Rwy 27 & Rwy 36
2 Full Service Flight Training Schools
5 Scheduled Commercial Flights Per Day• Arrivals 8am, Noon, 5pm, 8pm, and 11pm• Departures 9am, 1pm, 6pm, 9pm, and Midnight
1000 acres (all Surplus property)
All property on ALP designated Aeronautical
Federal AviationAdministration
115Georgia Airports Association March 13, 2014
Development Proposal – Case StudyThe Sponsor for Pot of Gold Regional Airport ($$$) 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:
Federal AviationAdministration
116Georgia Airports Association March 13, 2014
Development Proposal – Case Study– $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
Federal AviationAdministration
117Georgia Airports Association March 13, 2014
Development Proposal – Case StudyReview 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 SHAM-
Rock 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.
Federal AviationAdministration
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Questions
Federal AviationAdministration
119Georgia Airports Association March 13, 2014
Thank You!
Atlanta
Airports
District
Office
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