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Andrew Brooks Compliance & PFC Program Manager FAA, New York Airports District Office (516) 227-3816 andrew.brooks@f

32 nd Annual Easter Region Airports Conference Hershey, PA Noise Land Inventory & Reuse Plans An Overview & Discussion. Andrew Brooks Compliance & PFC Program Manager FAA, New York Airports District Office (516) 227-3816 andrew.brooks@faa.gov

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Andrew Brooks Compliance & PFC Program Manager FAA, New York Airports District Office (516) 227-3816 andrew.brooks@f

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  1. 32nd Annual Easter Region Airports Conference Hershey, PA Noise Land Inventory & Reuse Plans An Overview & Discussion Andrew Brooks Compliance & PFC Program Manager FAA, New York Airports District Office (516) 227-3816 andrew.brooks@faa.gov With Special Thanks to Rick Etter, APP-400

  2. Noise Land Inventory & Re-Use Plan • Background on the Guidance (PGL 08-02) • Sample Inventory and Re-use Plan Submittal • FAQs

  3. Background on the Guidance • A Brief History • 2005 OIG Audit • Grant Assurance #31 • Over 100 Airports Nationwide • FAA Disposal/Re-use Guidance – PGL 08-02 • Applicable to all financial programs (including ADAP & PFC) • Special Condition Y for Grants issued Post-2005

  4. Sponsor Management of Noise Land. Grant Assurance #31 (49 USC 47107(c)(2)) currently requires that airports: • Dispose of land at no less than the fair market value at earliest practical time after land no longer needed for noise compatibility. (option to convert to airport use land) • Retain an interest (easement, deed restriction, etc) in the land disposed to ensure compatible land use • Apply FAA grant share of land acquisition to proceeds of land disposal and reinvest in eligible noise projects or return to Trust Fund

  5. Sponsor Management of Noise Land. Special Condition Y, Appendix 7, FAA Order 5100-38C, AIP Handbook. (Grants issued beginning in 2006) ACQUISITION OF NOISE LAND: The Sponsor hereby agrees that upon completion of the land acquisition in this project, it will prepare a Noise Land Inventory and Reuse Plan to standards satisfactory to the Federal Aviation Administration (FAA) and submit said documentation in final form to the FAA. It is further mutually agreed that the reasonable cost of developing said Noise Land Inventory and Reuse/Disposal Plan is an eligible administrative cost for participation within the scope of this project.

  6. FAA Requirements to Manage Noise Land PGL 08-02 Management of Acquired Noise Land: Inventory - Reuse - Disposal SECTION 1. OBLIGATIONS ASSOCIATED WITH THE ACQUISITION OF NOISE LAND SECTION 2. MANAGEMENT OF NOISE LAND Noise Land Inventory and Reuse Plan. SECTION 3. RETAINING NOISE LAND A. Defining “No Longer Needed for Noise Compatibility.” B. Reserving Adequate Property Rights to Prevent Incompatible Land Use. SECTION 4. DISPOSAL OF UNNEEDED NOISE LAND. SECTION 5. USE OF DISPOSAL PROCEEDS SECTION 6. FAA OVERSIGHT OF NOISE LAND SECTION 7. COMPLIANCE AND REPORTING ATTACHMENTS: Inventory, Re-use Plan, Appraisal scope of work, sample escrow Download PGL 08-02 http://www.faa.gov/airports_airtraffic/airports/aip/guidance_letters/media/PGL_08_02.pdf

  7. What is the Sponsor Required to Do? • Prepare an inventory of Acquired Noise Land. • Tell FAA what you intend to do with the Noise Land • Dispose of Unneeded Noise Land • Provide updates as required

  8. Prepare an inventory of Acquired Noise Land. Include a schedule of all acquired noise land (should be the same as the Noise Land Grant Exhibit A) Show: Current Status per approved Reuse Plan; e.g. Sold, leased, retained for noise compatibility, converted to AIP eligible use, converted to aeronautical related (revenue producing) Assessor's Parcel Number or other Recordation Data on Sold Redevelopment Parcels Noise Land Inventory Map

  9. Noise Land Inventory Map Prepare an Map of Acquired Noise Land. • Include an aerial photo / map of acquired land, Show: • Noise Contour shown (latest approved NEM) • Airport Development / Aeronautical Use Parcels Outlined • Redevelopment Parcels Outlined (to be disposed or disposed) • Retained easements, deed covenants, other retained property rights

  10. Disposal of Unneeded Noise Land • Disposal does not necessarily mean sell • It is the airport sponsor’s decision how to dispose to meet grant obligation (subject to FAA acceptance). • Disposal by Exchange (non-AIP/non-Obligated Land) • Disposal by Sale • Disposal by Conversion to AIP Eligible Airport Development Land • Disposal Through Long Term Lease or Conversion to AIP-ineligible airport –owned land • Disposal of unneeded noise land is not a land release that requires public notice or FAA letter of release.

  11. Sponsor Re-Use Plan The Airport Sponsor in consultation with the FAA District Office and Region will submit the following for FAA Acceptance • Part A: Identify acquired parcels “Needed for Noise Compatibility” (e.g. within 75 dB DNL and not developed, needed for buffer given zoning/land use issues, no current market or airport development feasible/assembled) • Part B: Identify Unneeded land to be disposed by Market Sale • Include and update as disposal of redevelopment parcels progresses. Show appraised FMV information and sales proceeds when disposed.

  12. Part C: Identify Unneeded land to be incorporated as eligible Airport development land or used as airport owned Aeronautical related revenue producing land. ALP changes required to incorporate land. Applicable Environmental documentation completed. FAA will accept and monitor Sponsor Compliance with the Grant Assurance! Sponsor Re-Use Plan Continued

  13. Sample Inventory & Reuse Plan RPZ Land Possible Sale Land HANDOUT

  14. Sample Inventory & Reuse Plan

  15. Disposal of Unneeded Noise Land • Airport must retain adequate property rights and restrictions on the use and development of the land: • Enforceable Easement and/or Deed Restriction Must be Recorded With or Prior to any Sale or Lease of Excess Noise Land. • Land is Appraised Subject to Retained Rights & Development Restrictions. • Land use or development not compatible with Airport Use or Operations Prohibited • Current FAA / Airports Cooperative Research Project on enforcement of compatible land use restrictions: easements, deed restrictions/covenants….

  16. Important Items to Remember • Must Appraise Fair Market Value of the Land • Highest and Best Use • If Appraised as Raw Land, Appraiser must anticipate Zoning Changes for Redevelopment • Appraisals subject to Retained Property Rights • Scopes of Work for Appraisals must meet Uniform Standards of Professional Appraisal Practice and FAA Appraisal Requirements • Develop Plans Accordingly • All Plans must be completely implemented within 5 years of approval • Changes to Land Ownership may be changes to ALPs and be subject to NEPA

  17. FAA Environmental Treatment Disposal of Unneeded Noise Land • Prior Acquisition Approval. • Noise Land Inventory and Reuse Plan. • Conversion or Exchange of Unneeded Noise Land for Airport Development Land. • Market Sale/lease for Redevelopment.

  18. FAA Acceptance of Inventory and Re-use Plans. FAA Review of Inventory and Reuse Plan FAA may accept upon finding that: • Inventory is Accurate • Adequate property rights (easement/deed restrictions) are retained by the airport • Sale, lease or exchange of the unneeded land will be at the Fair Market Value, and; • Proper use of disposal proceeds • Long Term Leases must be handled appropriately

  19. Section 4. Disposal of Unneeded Noise Land. B. Acceptable Disposal Methods. 3. Conversion to AIP-Eligible Airport Development Land. The following has been deleted from the PGL: ... If the parcels are immediately adjacent to the RPZ or within the inner perimeter of the Code of Federal Regulations Part 77 horizontal surface (where the horizontal surface and the 20:1 conical surface meet), it may be reasonable to retain the land to ensure the airport’s ability to clear obstructions and maintain clear approaches. The airport design standards are defined in FAA Advisory Circular 5300-13, Airport Design.…. Land sold subject to retained easements to protect approaches/Part 77 surfaces and prevent incompatible land use. Correction to PGL 08-02 - “Approach Protection”

  20. FAA Compliance Schedule • Early 2009. Draft Land Inventories and Re-Use Plans Due. • October 2009. Final Re-Use Plans Due. Noise Land Inventory for all acquired noise land must be completed prior to submittal of Reuse Plan as agreed upon between the FAA and the individual airport. • June 2010. FAA Approval of Re-Use Plans Due. Triggers implementation of Plans within 5 year time period. • Noise land acquisition grants issued in FY 2006 or later. Noise Land Inventories and Reuse Plans must be completed or updated by project completion, in accordance with the grant special condition. • Ongoing Monitoring. FAA will routinely monitor compliance and disposal progress as documented on accepted current inventory and reuse plan.

  21. DRAFT FAQ’s Q1:Is aerial mapping required for the inventory? A1: An aerial map is recommended as the most effective means to inventory the acquired noise land and to indicate the potential re-use/disposal. At a minimum an inventory map is required. This map needs to be at a scale (less than 1000'/in) where the acquired noise land as well as the assembled parcels for re-use or market sale or lease may be easily identified. The inventory map is intended to assist the FAA Region and ADO's to be able to quickly confirm and verify that the inventory accounts for all acquired property and its final disposition. Reference: PGL 08-02, Attachment B

  22. DRAFT FAQ’s Q2: May the sponsor be reimbursed for their cost to prepare the inventory and re-use plan? A2: If there is an open land acquisition grant, the grant may be amended to include the inventory/re-use plan as planning costs. However these costs may not be funded under a separate grant. If there is no open land acquisition grant, the cost of the inventory and reuse plan that may be attributed to redevelopment expense (platting, planning costs) may be charged against sales/lease proceeds References: AIP Handbook at Pars.811(a)(1),816; Special Grant Condition Y.

  23. DRAFT FAQ’s Q3: How are the acquired parcels to be appraised, individually or as assembled for market sale? A3: As assembled for market sale at fair market value (FMV). By definition, a market sale of land must be at highest and best use. There is no market to redevelop the individual acquired residential lots. The acquired residential use lots must be assembled into a disposal parcel that will allow the land to be put its highest and best use and secure FMV on the sale of the land for redevelopment to compatible land use. References; Grant Assurance #31, FMV appraisal standards.

  24. DRAFT FAQ’s Q4: The airport acquired some noise land with AIP and other adjoining residential lots without AIP (as well as the acreage in vacated residential streets was acquired without AIP). How is land assembled with the different interest in the cost of the original land purchases? A4: The acquired land (and vacated street right-of-way) is considered to be under common ownership and may be assembled for redevelopment. The Federal share of the FMV of the assembled parcel is the pro rata (percentage) share of AIP parcels comprising the total parcel. There are also appraisal techniques available to distribute the assemblage value to contributing parcels, where a pro rata share may not be indicated as the FMV of the AIP land. References; Grant Assurance #31, FMV appraisal standards

  25. DRAFT FAQ’s Q5: What disposal costs can be offset against noise land sale proceeds, specifically: demolition costs, fencing, disposal appraisals, planning and zoning costs, improvement of utilities and public services, marketing and sales, commissions, legal fees, development costs (engineering and site preparation), rodent control, site grading all of which must not have been previously claimed for FAA funding previously? A5: Correct, all can be offset if not claimed previously for Federal assistance. However, costs to secure development approvals and on site development infrastructure may not offset against the raw land value of the disposal land, see PGL 08-02 at Section 4, C 2, Appraisal of Property Sold Approved for Development. When appraising the property, raw land would be considered land with access and utilities available to the site, but with no frontage or on site improvements made to the property. Reference: AIP Handbook Par 811.

  26. DRAFT FAQ’s Q6: Is the Federal share for payback on the sale of unneeded noise land the same as the Federal participation rate in the purchase of the acquired land? A6: Yes, the Federal share to be applied to sales proceeds is same as the participation rate in the purchase price of the parcel of land. For example if $80,000 AIP was reimbursed on the $100,000 purchase price of a parcel, then the Federal share on the sale of that parcel is 80%. So if that parcel is now sold for $220,000 with $20,000 in eligible sales expenses, then the payback amount owed is 80% of the $200,000 net sales proceeds or $160,000. Ref: Grant Assurance #31, 49 CFR 18.31(c)(2)

  27. DRAFT FAQ’s Q7: Payback is not required on noise land converted to eligible airport development land. What is eligible airport development land? A7: As provided in PGL 08-02 (paragraph 4B(3)), airport development is defined as “ development that is depicted as future airport development land on the FAA approved Airport Layout Plan (ALP) for projects that are eligible for AIP grant funds”. For example unneeded noise land may be converted for current or planned airside development, land within current or planned runway RPZ or RSA’s, land underlying approaches (Transitional and if justified Horizontal surfaces). Also AIP eligible landside development and eligible off airport use of land for navigational aid facilities and installation of airport utilities may be AIP eligible development (see AIP Handbook at paragraph 701, Land Acquisition for Current Airport Development).

  28. DRAFT FAQ’s Q8: May the sponsor retain unneeded noise land for uses that are not eligible under AIP, e.g. land used for commercial/industrial uses, public parking lots or other non-aeronautical revenue producing use? A8: Yes, but the sponsor will need to “pay back” the Federal funds at the appraised FMV of the disposed land used for non-eligible purposes. The sponsor will need to place deed restrictions on the land to prevent incompatible use or development. The deed restrictions need to be incorporated on the ALP.

  29. DRAFT FAQ’s Q9: PGL 08-02 states that the conversion of noise land to AIP development land is allowed as an acceptable disposal; including allowing an uses not eligible under the AIP (e.g. rental car facility) to move and occupy noise land in order to free up currently occupied airport land for AIP eligible use. For these combination conversions, what does the following requirement stated in the PGL mean? " For this exchange to be accepted the non-AIP eligible development land must had been acquired with local funds and must not be obligated airport land. " A9:The on airport land being swapped for the noise land must have been purchased with local funds. Also the land can not be obligated airport land such as surplus property land or land transferred under BRAC or other US Government land transfer.

  30. DRAFT FAQ’s Q10: Sales proceeds must be used for eligible noise compatibility purposes on the airport. However, it is proposed in the reauthorization that if there are no eligible noise compatibility projects at the airport, the proceeds may be applied (in descending order of priority) to an environmental mitigation project, to an AIP eligible development project, to a noise compatibility project at another airport; or failing all those returned to the Trust Fund. Given this pending flexibility, may an airport now escrow sales proceeds pending reauthorization? A10: Yes. The PGL includes a sample escrow agreement that may be helpful.

  31. DRAFT FAQ’s Q11: May unneeded noise land be swapped for new noise land eligible under the airport's NCP? A11: Yes with development restrictions retained. Also sale proceeds may be used to purchase additional noise land eligible under the airport's NCP.

  32. DRAFT FAQ’s Q12: May sales proceeds be applied to reimburse the prior cost of noise land acquired with local funds? A12: No, if the local funded noise land is sold, the sponsor would claim its reimbursement from its share of the sales proceeds. There is no additional eligible cost. If locally funded acquired noise land is useful for an AIP eligible use, then that land could be incorporated and would be eligible for grant reimbursement of the land cost under an eligible development use (with Uniform Act compliance certification). Possibly when we get a reauthorization and there is a change to the requirements on the use of noise land sale proceeds, we could reach to reimburse the cost of such land needed for development.

  33. Where to Get More Information? Questions / Guidance Needs? • PGL 08-02 “Management of Acquired Noise Land” www.faa.gov/airports_airtraffic/airports/aip/guidance_letters/media/PGL_08_02.pdf • AIP Handbook Chapter 8, FAA Order 5100.38 • Compliance Handbook, FAA Order 5190.7 • Andrew Brooks, (516) 227-3816, andrew.brooks@faa.gov

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