Airport Improvement Program

Overview of Grant Assurances & Common Mistakes

Presented to: 2009 Federal Agency Update By: Joelle Briggs, Regional Compliance Program Mgr.

Date: January 14, 2009

Federal Aviation Administration

Airport Sponsor Assurances

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Part A General

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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

AIP Program Grant Assurance Overview

January 14, 2009

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Common Mistakes

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Residential Use

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Through-the-Fence Access

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Revenue Diversion

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Economic Non-Discrimination

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Exclusive Rights AIP Program Grant Assurance Overview

January 14, 2009

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On-Airport Residential Use

AIP Program Grant Assurance Overview

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

AIP Program Grant Assurance Overview

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Residential Use

Grant Assurances Potentially Implicated

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#5, Rights and Powers #19, Operation and Maintenance

#21, Compatible Land Use

#24, Fee and Rental Structure #25, Airport Revenue

AIP Program Grant Assurance Overview

January 14, 2009

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Residential TTF Access

AIP Program Grant Assurance Overview

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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

AIP Program Grant Assurance Overview

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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

AIP Program Grant Assurance Overview

January 14, 2009

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#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

AIP Program Grant Assurance Overview

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Airport Revenue Permitted v. Prohibited Uses

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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.

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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

AIP Program Grant Assurance Overview

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#22, Economic Nondiscrimination

47107(a)(1-5)

M

ake 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, public at the airport.

including commercial aeronautical activities offering services to the

AIP Program Grant Assurance Overview

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#23, Exclusive Rights 47107(a)(4) AC 150/5190-6

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

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Examples –

– Exclusive Right in the FBO lease; – FBO leases all available space although not immediately used.

AIP Program Grant Assurance Overview

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Resources

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

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Grant Assurances

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Compliance Handbook, Order 5190.6A

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Exclusive Rights AC 150/5190-6

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Policy and Procedures on Revenue Use AIP Program Grant Assurance Overview

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