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Advocacy Advocacy Briefs Issue Brief: Airport Property Releases

Issue Brief: Airport Property Releases

On Capitol Hill

Issue Brief

Airport Property Releases

April 2000


Summary

Airport sponsors sometimes attempt to bypass the Federal Aviation Administration (FAA) and ask for congressional intervention to allow individual airports to release all or part of airport land for non-aviation use. There are times when such releases are beneficial to the airport, but only when such releases are approved by the Federal Aviation Administration (FAA).

However, when an airport sponsor uses government land for non-aviation purposes and does not reinvest the revenue in the airport, it is considered revenue diversion. This diversion of federal taxpayer dollars to non-aviation uses can be especially troubling at a time when basic aviation infrastructure needs are unmet.

Land releases can also endanger the airport by leading to incompatible land-use, encroachment and safety implications. Legislation regarding airport property releases must meet certain criteria to protect the viability of the airport and maintain the integrity of federal airport investments.

Background

Airport sponsors can receive federal airport development assistance in the form of land or in the form of Airport Improvement Program (AIP) grants. When accepting federal assistance, the airport sponsor enters into a contract with the FAA that includes certain obligations designed to protect the government�s investment.

The federal government can provide airports with land in three different ways: surplus property transfers, non-surplus property conveyances (also known as Section 16, 23, 516 or 47125 airports) or by providing AIP funds to purchase land. Approximately 350 airports have received surplus property, often former military installations. Currently, the FAA already has authority to release surplus land for non-aviation purposes, under certain circumstances. Approximately 100 airports have received non-surplus property, usually when an existing airport requested land from a federal agency for airport expansions. If the land is no longer needed for aviation purposes, it generally reverts to the federal agency that conveyed it. In the case of non-surplus land, the FAA does not have authority to release the land for other purposes; only an act of Congress can do so.

Approximately 2000 general aviation airports have received AIP funding for land purchases or other airport improvements. When an airport accepts AIP funding, is agrees to uphold 36 AIP grant assurances. One of the grant assurances requires the airport to maintain an Airport Layout Plan (ALP) that shows all existing and proposed airport facilities and structures. The ALP must be approved by the FAA. When the FAA considers a proposal to release airport land, the agency reviews the ALP to determine the proposal�s impact. Effectively, the FAA must approve any change to the use of airport land, including property releases.

FAA Releases

The first step an airport sponsor should take when seeking an airport property transfer is to contact the FAA and seek their approval. In many situations, the FAA will approve such a proposal as long as the action protects, advances, or benefits civil aviation.

In certain cases, using airport property for non-aviation purposes can provide much needed revenue for the airport. Sometimes requests benefit the airport by providing additional infrastructure crucial for airport growth. However, sometimes requests can result in incompatible land use, encroachment, or even airport closures. This is why a release of airport land has to benefit the airport, cannot create incompatible land-uses and cannot interfere with current or future aeronautical activities or functions at the airport.

There are grant assurances that require the airport owner to take appropriate zoning action to prevent noise and safety problems near the airport and to ensure compatible land use. There are also federal laws and FAA regulations on revenue diversion that require any revenue produced by the sale, disposal, leasing or other revenue-producing activity of airport property be reinvested in the airport for aeronautical improvements. However, the General Accounting Office recently concluded the FAA has failed to adequately monitor compliance by general aviation airports, leading to numerous abuses.

An airport sponsor sometimes avoids the FAA process and goes directly to Congress because the proposed land release does not meet the established FAA guidelines. For example, the airport sponsor may hope to build housing on the land that is incompatible with the airport, or may plan to use the revenue gained by the project on a non-aviation project.

AOPA Guidelines

There are ways to ensure that the airport is protected while also permitting land to be released for other necessary purposes.

  • The request must be specific in defining the parcel of land in question. This is because an open-ended release of all terms could result in closing the airport in future years.
  • The release must benefit the airport in some way (usually financially). It must comply with federal law and regulations on revenue diversion.
  • The land being released must have no current or planned aeronautical function, and the proposed use of the land in question must be compatible with the airport. The proposed transfer should be a part of the FAA approved Airport Layout Plan.
  • There must be notification to airport tenants & users along with a public process.

AIR-21 Provisions

The FAA Reauthorization bill, known as AIR-21, which was signed by the President this spring requires 30 days public notice prior to allowing property to be used for nonaeronautical purposes. Additionally, it gives airports priority for receiving surplus government property and changes references to "gifts" as "conveyances."