Federal Aviation Administration

1. Federal Aviation Administration Office of Airports Atlanta Airports District Office Airport Land Acquisition & Land Releases How the FAA Process Works Georgia Airports Association 2016 Spring Workshop February 18, 2016

2. Why Buy More Airport Land? • Aeronautical Development • Noise Mitigation • Control of Airport Design & Safety Surfaces (RSA, OFA, RPZ, etc.) • Control of Adjacent, Incompatible Land Uses • Airspace Protection

3. Airport Land Acquisition Methods • Fee Simple Property • Avigation Easement • Donation • Exchange • Eminent Domain (Condemnation) Can be pursued with Federal Funds or Without

4. Benefits of “Local Funds Only” • No federal procurement rules required • Allows acquisition costs above FMV • Allows acquisition costs below FMV (w/ disclosure) • Less bureaucracy & red tape (cost savings, faster, etc.) • Still requires FAA Environmental Determination & ALP/ Exhibit A update. NO FEDERAL RULES, NO FEDERAL FUNDS . . . EVER.

5. FAA Land Acquisition Process For AIP Funding, Airport Land Acquisition MUST be: • Justified for Imminent Aeronautical Development (within 5 years), • Justified & Federally Procured for Future AIP Reimbursement, • Environmentally Clear for the Proposed Development, • On the ALP with Completed Airspace Analysis • On the Exhibit A, and • On the Airport’s CIP

6. Information Package Checklist FAA Requires a Project Information Package Including: • Formal Letter of Request from Sponsor • Property Survey, Plats, Map relative to Airport Location • Title Search/ Certification of Title • Appraisal & Review Appraisal/ Final Negotiations (6-12 mo.) • Updated ALP & Exhibit A • Completed Environmental Site Assessment • Uniform Relocation Needs/ Plan • Estimated/ Final Costs + Fees • Outline of Actions Taken if Condemning • Update CIP & Submit AIP Pre-App/ App Package Checklist at: http://www.faa.gov/airports/environmental/relocation_assistance/land_acquisition_under_aip/land_project_checklist/

7. Land Acquisition – The Easy Way AIP Reimbursement • Airport Sponsor has Land Appraised • Airport Sponsor Makes Offer (FMV) • Land Owner Rejects or Accepts Offer Accepts Offer Rejects Offer Airport Sponsor Purchases Property – Fee Simple/ Easement FAA Issues Grant to Reimburse Airport Sponsor (90% share) Condemnation or Administrative Settlement

8. Land Acquisition – The Hard Way Delayed Purchase with AIP Grant Funds • Airport sponsor has land appraised • FAA issues grant to airport sponsor (based on appraised cost) • Airport sponsor makes offer (FMV) • Land owner rejects or accepts offer Accepts Offer Rejects Offer Airport Sponsor Purchases Property - Fee Simple/ Easement Limited Amendment Likely Required for Final Costs (Risky) Condemnation or Administrative Settlement Limited to Amount of Grant Offer

9. Acceptance of Administrative Settlement • More than 10% increase requires full analysis & discussion • Must verify amount is reasonable • Must reflect the public interest Sponsor’s documentation for FAA acceptance of an Administrative Settlement must include the following: • Summary of negotiation efforts. • Recent Court Awards in the vicinity. • Estimate of trial cost, including preparations. • Written opinion of the sponsor’s legal counsel. • Ref FAA AC 150/5100-17 CHG 6, Land Acquisition and Relocation Assistance for Airport Improvement Program Assisted Projects • Contact your Program Manager for assistance

10. Avigation Easements Avigation Easements are airspace property rights acquired by an airport whenever airspace or land uses beyond airport property needs to be controlled or protected which can include the removal of obstructions that penetrate critical aviation surfaces. • Typically valued at 10 % - 15 % of the appraised property value. • Protects approach/ departure surfaces, navaid clearing req’ts, structure height restrictions, & incompatible land uses. • Must be shown on ALP, Airport Property Map and Exhibit “A”.

11. Other Airport Land Acquisition Methods Land Donations • Requires statement of value/ appraisal (must disclose FMV) Land Exchanges/ Swaps • Exchange/ swap of properties of similar value where there is an improved benefit (no loss) to the airport • Requires statement of value/ appraisal (must disclose FMV) • Monetary differences must be reconciled • May require Federal Register Notice Condemnation • Requires documentation of actions taken • Typically unpopular, time consuming, expensive, AIP may not cover all costs All transactions require FAA coordination for environmental approval & update of the ALP & Exhibit A

12. Airport Land Use is Ideally . . . • aviation related • beneficial to the airport & its users • compatible with aviation • a revenue generator for the airport, not the sponsor • No free rent! All leases or agreements must generate Fair Market Value (FMV) for aeronautical use (private or municipal use). • No free access! Through-the-fence agreements should have measureable, contractual benefits (not compromises) for the airport.

13. Airport Land Release The formal, written authorization discharging and relinquishing the FAA’s right to enforce an airport’s contractual obligations. It is limited to releasing the sponsor from a particular assurance or federal obligation such as release from aeronautical use or property disposal or sale.

14. Why Release Airport Land? Provides for compatible community development • Releases unneeded on-airport land for non-aeronautical use/ lease for continual airport revenue • Releases unneeded land for disposal/ sale Lowers continuing operating costs for airport Parcel remains on ALP if only a “use” change Parcel is removed from ALP if disposed/ sold May or may not be approved by FAA

15. Airport Land Releases FAA Requires a Project Information Package Including: • Formal Letter of Request from Sponsor • Fee Simple, Easement, Federal Surplus Land, AIP Assistance • Justification for Release Relative to ALP Development • Proposed use of Land • List of Airport’s Obligating Agreements (grant assurances, past restrictions or encumbrances, etc.) • Electronic Property Survey & Plat/ Map relative to Airport • Current Appraisal & Review Appraisal by Sponsor w/ Improvements • Commitment for Use of Proceeds on Airport (no AIP match) • Updated ALP & Exhibit A • Completed Environmental Site Assessment for Due Diligence • Possible Federal Register Notification (60+ days) • May Require a Formal FAA Letter of Release/ Deed of Release

16. FAA Process Requirements New policy

17. Noise Land Releases • Prior Policy required airports to release all noise land purchased for mitigation once sterilized. • Current policy allows airports to retain noise land for aeronautical uses for continued land use control and airspace protection. • If noise land is released/ sold, it must retain protective controls (easements, zoning, ordinances, etc.) to ensure aeronautical compatibility. • All noise land revenues must be used for eligible, on-airport projects (can be combined with AIP, but not local match).

18. Aimee McCormick FAA Airport Planner & Program Manager Aimee.McCormick@faa.gov 404-305-6709