Top 10 Mistakes We See Non-Georgia Airport Sponsors Making

Transcription

1 Top 10 Mistakes We See Non-Georgia Airport Sponsors Making Presented to: Georgia Airports Association By: Date: Deandra Brooks February 17, 2016

2 #10 Unprofessional Practices Informal business practices Ad hoc procedures Lack of written polices, procedures, leases, etc. General Aviation Commercial Service Sliding Scale 2

3 #10 Unprofessional Practices May cede the sponsor s rights & powers Warbird Sky Ventures v. Sumner County Regional Airport Exposes the sponsor to allegations of violations of Grant Assurances 22 & 23 ***Law of Airport Attraction*** 3

4 #9 Negotiating Bad Deals No cost or minimal cost lease rates Rent abatement Leaseholds in excess of lessees needs Not including subordination clauses Permitting the airport to become encumbered Giving nonaeronautical tenants aeronautical rates & rights Lease terms that exceed the time needed to amortize the lessee s investment 4

5 #9 Negotiating Bad Deals Bad deals can deprive the airport from becoming self-sustaining Invite complaints Can be very difficult to fix Can be very costly to fix ***Complaining v. Competing*** ***FBO Wars*** 5

6 #8 Ignoring Sponsor s Prime Obligation Operating the airport for aeronautical use is not a secondary obligation; it is the prime obligation. This prime obligation includes the opportunity for leaseholders to develop airport property for aeronautical use. United States Construction Corporation v. City of Pompano Beach, FAD,

7 #8 Ignoring Sponsor s Prime Obligation For job creation For local economic development initiatives To pursue local environmental goals Because operating the airport is expensive Because the community doesn t like the airport Because we don t like X kind of aeronautical activity/operation/service 7

8 #8 Ignoring Sponsor s Prime Obligation A smart sponsor researches & PLANS for its future! ***A smart sponsor controls its own destiny*** 8

9 #7 Ignoring the ALP Using land depicted for aeronautical use for nonaeronautical purposes Disposing of airport property Acquiring airport property and not depicting it on the ALP Going through the release process, but never actually disposing of the property 9

10 #7 Ignoring the ALP An ALP is a tool airport sponsors use to communicate with the FAA: current airport facilities, uses, & land future airport facilities, uses, & infrastructure Promotes orderly development of the airport Allows the FAA to protect for future development Allows the FAA to plan its future investments at the airport 10

11 # #7 Ignoring the ALP29 Airport Layout Plan May result in a violation of Grant Assurance 29 ***You break it, you buy it!***

12 #6 Not Having an Exhibit A Property Map2 Airport Layout Plan Exhibit A Property Map An inventory of the parcels that make up the airport property Should explain how the land was obtained Should identify parcels released/sold

13 #6 Not Having an Exhibit A Property Map Makes it difficult for the sponsor to keep track of its property May result in a violation of Grant Assurance 4 May result in a violation of Grant Assurance 29 May result in a violation of Grant Assurance 31 May result in a violation of Surplus Property Deeds 13

14 #5 Never Adjusts the Rates & Charges Airport Layout Plan Leases do not include escalation clauses or any type of periodic adjustments Lease rates do not reflect the condition of the infrastructure Leases that lack reversionary clauses Rates & charges that are excessively low

15 #5 Never Adjusts the Rates & Charges Makes it difficult for the sponsor to comply with Grant Assurance 24 Makes the airport a budgetary target May invite allegations related to Grant Assurance 22 15

16 #4 Never Improves Business Practices Relies on outdated Minimum Standards Fails to enforce Minimum Standards, Rules & Regs, Leases, etc. Ignores bad tenants Ignores tenants (fails to address potential complaints) Ignores the local community Fails to plan for the future 16

17 #4 Never Improves Business Practices Never improving an airport s business practices invites complaints! In reviewing a complaint, the FAA considers what action the sponsor took! 17

18 #4 Never Improves Business Practices FAA Order B, 7.8: Grant Assurance 19, Operation and Maintenance, requires the sponsor to protect the public using the airport by adopting and enforcing rules, regulations, and ordinances as necessary to ensure safe and efficient flight operations. Accordingly, the sponsor is more than a passive landlord because the assurance federally obligates it to maintain and operate the aeronautical facilities and common-use areas for the benefit of the public. 18

19 #4 Never Improves Business Practices the FAA does not judge an airport sponsor simply by the plain language of agreements or minimum standards, since such documents are rarely so perfectly crafted as to avoid all possibilities for inconsistency over time, changing circumstances and interpretations. Rather, the FAA judges compliance by an airport sponsor's actions or inactions with respect to those agreements or minimum standards. Self Serve Pumps, Inc. v. Chicago Executive Airport,

20 #3 Delays Negotiations/Decisions A sponsor s inaction can become the action the FAA considers. Don t let planning processes become an excuse that results in the denial of access! 20

21 #3 Delays Negotiations/Decisions How long is too long? Frank Hinshaw, Skydiving School, Inc., d/b/a Skydive Hawaii v. The State of Hawaii, (Preliminary Director s Determination) delay of over 5 years Grayson and Gate 9 Hangar, LLC v. DeKalb County, GA, month delay Martyn v. Port of Anacortes, Wash., delay of 3 years U.S. Constr. Corp. v. City of Pompano Beach, Fla., at delay of over a year FAA v. Arapahoe County Pub. Airport Auth., Delay had been in excess of 16 months and was still pending at the time of the Director's Determination

22 #2 Don t Ask for Help If you don t know the answer, find out! FAA GDOT Industry Associations Other Airports

23 #2 Don t Ask for Help Accepting federal airport aid, through a grant or the receipt of land, results in a contractual relationship with the FAA. We expect airport sponsors to read and understand the terms & conditions associated with the grant or deed. ***Ignorance is NOT Bliss***

24 #1 Refuse to Be An Ambassador for Airport Compliance [am-bas-uh-der, -dawr] An authorized messenger or representative 24

25 #1 Refuse to Be An Ambassador for Airport Compliance Locally Elected Officials Tenants Airport Manager Users Community 25

26 #1 Refuse to Be An Ambassador for Airport Compliance A sponsor meets its commitments when: (1). The federal obligations are understood; (2). A program (e.g., preventive maintenance, leasing policies, operating regulations, etc.) is in place that the FAA deems adequate to carry out the sponsor s commitments; (3). The sponsor satisfactorily demonstrates that such a program is being carried out; and, (4). Past compliance issues have been addressed. FAA Order B, 2.8.b.

27 ATL ADO Larry Clark Manager William Chuck Garrison Assistant Manager

28 ASO Compliance Staff Deandra Brooks Heather Haney Maverick Douglas Manager, Safety & Standards Branch

29 But Before You Ask Questions Proposed Policy Nonaeronautical Use of Hangars Policy AOPA Petition to Amend FAA Policy Concerning Flying Club Operations CGL- FAA Guidance to Assess Airport Sponsor Proposals to Temporarily Use All or Parts of Federally Obligated Airports for Nonaeronautical Events CGL Procedures for Handling Requests for Banner Towing, LSA, Parachute Operations, and Ultralights Status Draft Policy Published 7/22/14, but not yet finalized Petition Published 7/15/15, but no further action taken yet Draft circulated for internal FAA review and comment in October 2015 Draft circulated for internal FAA review and comment in November

30 But Before You Ask Questions More Proposed Policies AC Reasonable Access for Parachute Operations and Parachute Drop Zones on Federally Obligated Airports CGL Appraisal Standards for the Sale and Disposal of Federally Obligated Property CGL Airport Closures CGL Airport Leasing Practices CGL Airport Transfers Status Draft circulated for internal FAA review and comment in November 2015 Draft circulated for internal FAA review and comment in November 2015 Under development in HQ Under development in HQ Under development in HQ 30

31 Now It s Your Turn! 31