We See NonGeorgia Airport Sponsors Making Georgia Airports Association Deandra Brooks February 17 2016 10 Unprofessional Practices Informal business practices Ad hoc procedures ID: 484125
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Slide1
Top 10 MistakesWe See “Non-Georgia”Airport Sponsors Making
Georgia Airports Association
Deandra Brooks
February 17, 2016Slide2
#10 Unprofessional PracticesInformal business practices
Ad hoc proceduresLack of written polices, procedures, leases, etc.
General Aviation Commercial Service2
Sliding ScaleSlide3
#10 Unprofessional Practices3
May cede the sponsor’s rights & powers16-07-16 Warbird Sky Ventures v. Sumner County Regional Airport
Exposes the sponsor to allegations of violations of Grant Assurances 22 & 23***Law of Airport Attraction***Slide4
#9 Negotiating Bad Deals4
No cost or minimal cost lease rates
Rent abatementLeaseholds in excess of lessees’ needsNot including subordination clausesPermitting the airport to become encumberedGiving nonaeronautical tenants aeronautical rates & rights
Lease terms that exceed the time needed to amortize the lessee’s investmentSlide5
#9 Negotiating Bad Deals5
Bad deals can deprive the airport from becoming self-sustainingInvite complaints
Can be very difficult to fixCan be very costly to fix***Complaining v. Competing******FBO Wars***Slide6
#8 Ignoring Sponsor’s Prime ObligationOperating 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, 16-0014
6Slide7
#8 Ignoring Sponsor’s Prime Obligation7
For job creation
For local economic development initiativesTo pursue local environmental goalsBecause operating the airport is expensiveBecause the community doesn’t like the airportBecause we don’t like “X” kind of aeronautical activity/operation/serviceSlide8
#8 Ignoring Sponsor’s Prime ObligationA smart sponsor researches & PLANS
for its future!***A smart sponsor controls its own destiny***
8Slide9
#7 Ignoring the ALP
Using land depicted for aeronautical use for nonaeronautical purposes
Disposing of airport propertyAcquiring airport property and not depicting it on the ALPGoing through the release process, but never actually disposing of the property
9Slide10
#7 Ignoring the ALP10
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 airportSlide11
##7 Ignoring the ALP29
– Airport Layout Plan
May result in a violation of Grant Assurance 29***You break it, you buy it!***Slide12
#6 Not Having an Exhibit “A” Property Map2– Airport
Layout Plan
Exhibit “A” Property MapAn inventory of the parcels that make up the airport property
Should explain how the land was
obtained
Should
identify parcels released/soldSlide13
#6 Not Having an Exhibit “A” Property Map
Makes it difficult for the sponsor to keep track of its propertyMay result in a violation of Grant Assurance 4
May result in a violation of Grant Assurance 29May result in a violation of Grant Assurance 31May result in a violation of Surplus Property Deeds13Slide14
#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 infrastructureLeases that lack reversionary clausesRates & charges that are excessively lowSlide15
#5 Never Adjusts the Rates & ChargesMakes it difficult for the sponsor to comply with Grant Assurance 24
Makes the airport a budgetary targetMay invite allegations related to Grant Assurance 22
15Slide16
#4 Never Improves Business Practices
Relies on outdated Minimum StandardsFails to enforce Minimum Standards, Rules & Regs
, Leases, etc.Ignores bad tenantsIgnores tenants (fails to address potential complaints)Ignores the local communityFails to plan for the future
16Slide17
#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!
17Slide18
#4 Never Improves Business PracticesFAA Order 5190.6B, ¶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. 18Slide19
#4 Never Improves Business Practices19
…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 minimumstandards
.Self Serve Pumps, Inc. v. Chicago Executive Airport, 16-07-02Slide20
#3 Delays Negotiations/DecisionsA 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!20Slide21
#3 Delays Negotiations/Decisions
How long is too
long?Frank Hinshaw, Skydiving School, Inc., d/b/a Skydive Hawaii v. The State of Hawaii, 16-12-04 (Preliminary Director’s Determination) delay of over 5 yearsGrayson and Gate 9 Hangar, LLC v. DeKalb County, GA, 16-05-13
17 month delayMartyn v. Port of Anacortes, Wash., 16-02-03 delay of 3 yearsU.S. Constr. Corp. v. City of Pompano Beach, Fla.,
16-00-14
at
18-19 delay
of
over a
year
FAA v. Arapahoe County Pub. Airport Auth.,
16-98-05 Delay
had been in excess of
16 months
and was still pending at the time of the Director's DeterminationSlide22
#2 Don’t Ask for HelpIf you don’t know the answer, find out!
FAA
GDOTIndustry Associations
Other AirportsSlide23
#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***Slide24
#1 Refuse to Be An Ambassador for Airport Compliance
[am-bas-
uh-der, -dawr]An authorized messenger or representative
24Slide25
#1 Refuse to Be An Ambassador for Airport Compliance
25
Airport
Manager
Tenants
Locally Elected Officials
Users
CommunitySlide26
#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 5190.6B, 2.8.b.Slide27
ATL ADOLarry ClarkManagerWilliam “Chuck” Garrison
Assistant Manager404-305-6799
27Slide28
ASO Compliance StaffDeandra Brooks
404-305-6739deandra.brooks@faa.gov
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Heather Haney
404-305-6723
h
eather.haney@faa.gov
Maverick Douglas
Manager, Safety & Standards Branch
404-305-6700
m
averick.douglas@faa.govSlide29
But Before You Ask Questions…
Proposed PolicyStatus
Nonaeronautical Use of Hangars PolicyDraft Policy Published 7/22/14, but not yet finalizedAOPA Petition to Amend FAA Policy Concerning Flying Club OperationsPetition Published 7/15/15, but no further action taken yet
CGL- FAA Guidance to Assess Airport Sponsor Proposals to Temporarily Use All or Parts of Federally Obligated Airports for Nonaeronautical EventsDraft circulated for internal FAA review and comment in October 2015CGL – Procedures for Handling Requests for Banner Towing, LSA, Parachute Operations, and Ultralights
Draft circulated for internal FAA review and comment in November 2015
29Slide30
But Before You Ask Questions…
More Proposed PoliciesStatus
AC – Reasonable Access for Parachute Operations and Parachute Drop Zones on Federally Obligated AirportsDraft circulated for internal FAA review and comment in November 2015CGL – Appraisal Standards for the Sale and Disposal of Federally
Obligated PropertyDraft circulated for internal FAA review and comment in November 2015CGL – Airport Closures
Under development in HQ
CGL – Airport Leasing Practices
Under development in HQ
CGL – Airport Transfers
Under development in HQ
30Slide31
Now It’s Your Turn!
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