U
.S

. Departm e nt o f Transportation Federal Aviation Administration
July 12, 2012

Mr. E. Tazewell Ell ett Co uns e l for Respondent Hogan Lovells US LLP 555 T h irteenth Street , NW Washington, DC 2000 4 Airport Compliance and Management Analys i s

Re: Docket No. 16-09-06 Dear Mr. Ellett: 800 Independence Ave ., SW

. Washington , DC 20591

Thank you fo r your March 30, 20 121 etter regard i ng the C ity of Glendale's (C i ty) o ngoing effo rts to imp le m ent the correc ti ve action plan tentatively accepte d by the Federal Av iation A dmin is tration (FAA) last year. The corre ctive action plan o ut lined th e Ci ty's propo sed response and methodology to beco me comp liant with the findings ofthe FAA's Director's Determinati o n (D O ) , Valley Aviat ion Services, LLP v. City of Glendale, AZ, FAA Doc ket 16-09 -06, issued May 24, 20 11
. In the DO , the FAA foun d the C i ty of Glenda le had been in v iolat i o n of the fo ll owing airport spo ns or grant assurance ob li gations:
• Grant Assurance 19 , Opera ti o ns and Maintenance; • Grant Assurance 29, A ir port Layou t Plan ; an d • Grant Assu ran ce 22, Eco nomi c Non dis c rimination. As part of the corrective actio n p lan , th e C ity h as been w or king with hangar te n ants to implement a han gar inspection program as a m eans to ensure cons i stent com pl iance with th e 2 004 A irport Rules and R egul a tion s, the C ity's g rant assuran ce obligation s, and FAA polic ies. FAA agreed to assist th e City in its efforts s ho uld significant questions arise du ring the d evelopme nt and imp l ementatio n of the corrective ac t ion plan. In th e above referenced letter , yo u called up on th e FAA to provide clarifi catio n regard in g the standard for determ inin g aeronautical versus nonaeronautical u ses of aircraft han gars as t he City strives to ac hieve full comp lian ce i mpl ementi ng its han gar inspection program. This letter serves as FAA's response to your request. Summar il y , an airport owner is obl i ga ted to us e aeronautic ally design ated land and facilities for aeronautical p u rposes . H angars l ocated o n airport property designate d fo r aeronautical use may o n ly be used in direct s upport of an aeron autical purpo se . A ircraft stor age han ga r s2
may be used to s tore only aircraft, items whic h are u sed on or for aircraft, or incidental items for personal co nvenience while using the hangar (so l ong as any s uc h stored personal convenience items are det e rmined to be acceptable by the airport manager). Thus , aircraft s torage hangars may be used to store the items on the fo ll owing l ist (which is no t intended to be all-inclusive):


### • •


### •
•


### •
•
• Aircraft 1 • 

### ' A ircraft tow bar or sim ilar aircraft tow i ng equipment for the s torage and/or removal of the aircraft in the hangar; Aircraft flight and maintenance logs, to include filing cabinets as needed for orderly storage of these logs; A desk for the purposes of conducting flight planning or other directly aeronautical purpose s; A printer for the purposes of conducting flight planning or other directly aeronautical purpo ses; A s mall refrigerator or coffee pot used for personal convenience while using the hangar (so long as this is acceptable to the a irp ort manage r) ; and Items to maintain an aircraft, even if such items may not be u se d in the hangar but in ste ad elsewhere on the airport such as an aircraft wash rack or maintenance apron (A ll s tored items must be permitte d by local fire codes, airport rules and regulations , and other l ocal ordinances). An airport owner has the proprietary right to d es ignate parc el s of propert y as nonaeronautical use. As s uc h , a nonaeronautical parcel would not be considered by the FAA to be eligible for Fed eral airport project funding for infrastructure improveme nts s uch as taxiways, aprons, ramps , etc . Furthermore, the airport owner is required to charge nonaeronautical fair marke t value rental fees for the nonaeronautical use of airport property. This is exp licitly stated in FAA 's Policy and Procedures Concerning the Use of Airport Revenue (64 FR 7696) (Revenue Use Po licy) and also recognized to further a se lf -susta ining rate structure, which is required under Grant Assurance 24 and codified at 49 U.S. Code, section 47107(a)(13)(A). Items that FAA considers to be nonaeronautical or not for the furtherance of the aeronautical use of the aircraft hangar, and thus shou ld not be stored in hangars on airport property de signa ted for ae ronautical use at aeronautical rate s, include (without limitation):
• B oats; • Motorcyc les, automobiles , recreational ve hi c le s, campers; 2

1The re are additional requirements regarding nonflyable aircraft. 2 Th e FAA recognizes an aircraft owner may drive an automobil e or ride a motorcycle or bicycle to the airport and s ub sequen tly remove th e aircraft from its hangar for aeronautical purpo ses. In s uch circumstances, the FAA doe s not consider temporarily parking the automobil e, motorc ycle , bicy c le or other re asonable transportation used by the a ircraft owner / user in the hangar to conflict with the hangar 's aeronautical use. Howeve r , und er no c ircum stances may a hangar located on airport property de s ignated for aeronautical use be used for the sto rage of an automobi le or other nonaeronautical item s.3

• Fork lift s; 

### • Welding equipment; • Dri ll presses; • Beds; • Ho us ehold items that do not have aeronautical purposes; and • Recreational/playground equipment (e.g. swing sets, golf clubs, fishing equipment). Again, this list represents just a few examples of items that may not be stored in aircraft hangars located on airport property designated for aeronautical use and charged aeronautical fees. The airport owner has the right to impose additional restrictions how tenants use airport property as long as these restrictions are reasonable, nondiscriminatory and consistent with the airport owner's Federal grant assurances. The FAA recognizes there may be l imited occasions when an aircraft owner/user may wish to load and unload into the aircraft small supplies of recreational items such as golf clubs or fishing equ ipment overni ght before or after a trip in the aircraft. However, any storage of these items must be limited to the single use and be removed immediately before or after the trip. To date, the City has undertaken numerous steps to correct the findings in the Director's Determination. The FAA wishes to commend the City for its efforts to become a fully compliant airport sponsor, thereby ensuring future eligibility to Federal program assistance
. If you have any questions on this matter or require additional assistance , please contact myself at (202) 267 -87 41 or Tony Garcia, the FAA ' s Western Pacific Region Airport Compliance Program Manager, at (310) 725-3634. S ince ely ,

# ~v--C.tJQt vin C. Willis 

### { anager, Airport Compliance
cc: FAA Part 16 Airport Proceedings Docket Western Pacific Region Airports Div i s ion , AWP-600 Los Angeles Airports District OfficeU.S. Deportment of Transportation Airport Compliance and Management Analysis 800 Independence Ave., SW. Washing t on , DC 20591 Federal Aviation Administration
July 6 , 2012

Mr. E. Tazewell E ll ett Counsel for Respondent Hogan Lovells US LLP 55 5 Thirteenth Street, N W Washington, DC 20004 Re: Docket No. 16-09-06 Dear Mr. Ellett: Thank you for your March 30, 20121etter regarding the City of Glendale's (City) ongoing efforts to implement the corrective action plan tentat i vely accepted by the Federal Aviation Administration (FAA) last year. The corrective action plan outlined the City's proposed response and methodology to become compliant with the findings of the FAA ' s Director's Determination (DD) , Valley Aviation Services, LLP v. City of Glendale, A Z , FAA Docket 16-09-06, issued May 24, 2011. In the DD , the FAA found the City of G lendale had been in violation ofthe following airport sponsor grant assurance ob li gations:
• Grant Assurance 19 , Operations and Maintenance; • Grant Assurance 29 , Airport Layout Plan; and • Grant Assurance 22, Economic Nondiscrimination. As part of the corrective action plan, the City has been working with hangar tenants to implement a hangar inspection program as a means to ensure consistent comp li ance with the 2004 Airport Rules and Regulations , the City's grant assurance ob li gations , and FAA policies. FAA agreed to assist the City in its efforts should significant questions arise during the development and implementation of the corrective action plan. In the above referenced letter, you called upon the FAA to provide clarification regarding the standard for determining aeronautical versus nonaeronautical uses of aircraft hangars as the City strives to achieve full compliance implementing its hangar inspection program. This letter serves as FAA's response to your request. Summarily , an airport owner is ob li gated to use aeronautically designated land and facilities for aeronautical purposes. Hangars located on airport property designated for aeronautical use may only be used in direct support of an aeronautical purpose. Aircraft storage hangars O NCUAAENCES f\ OUTlN G**MBO ~**  AC0-100**NITI A~** **SIS G**  jl>ATE

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may be used to store on ly aircraft, items which are used on or for aircraft, or incidental item s for personal convenience whi l e using the hangar (so long as any such s tored personal convenience item s are determined to be acceptable by the airport manager). Thus, aircraft storage hangars may be u sed to store the item s on the following list (which is not intended to be all-inclusive):
• 

### •

•

•


### • Ai rcraft 1 • 

### ' Aircraft to w bar o r simi lar aircraft towing equipment for th e storage and/or removal of the aircraft in the hangar ; Aircraft flight and maintenance l ogs, to include filing cabinets as needed for orderly storage of these log s; A desk for the purposes of conducting flight planning or other directly aeronautical purposes; A printer for the purposes of conducting flight planning or other directly aeronautical purposes; • A smal l refrigerator or coffee pot used for personal convenience w hil e using the hangar (so long as this is acceptable to the airport manager); and • Items to maintain an aircraft, even if suc h items may not be us ed in the hangar but instead elsewhere on the airp ort such as an aircraft wash rack or maintenance apron (All stored item s must be permitted by loc a l fire codes, airport rules and regulations, and other l ocal ordinances). An airport owner h as the proprietary right to designate parcel s of property as nonaeronautical use. As such, a nonaeronautical parcel wou ld not be considered by the FAA to be e li gible for Federa l airport project funding for infrastructur e improvements such as taxiways, aprons, ramps, etc. Furthermore, the airport owner is required to charge nonaeronautical fair market value rental fees for the nonae ronautical use of airport property. This is exp li c itly state d in FAA's Policy and Procedures Concerning the Use of Airport Revenue (64 FR 7696) (Revenue Use Po li cy) and also recognized to further a se lf -sustaining rate structure, which is required under Grant Assurance 24 and codified at 49 U.S. Code, sec tion 47107(a)(13)(A). Items that FAA considers to be nonaeron auti ca l or not for the furtherance of the aeronautical use of the aircraft han gar, and thu s s hould not be stored in hangars on airport property designated for aeronautical use at aeronauti cal rates, include (without limit ation):
• Boats; • Motorcyc les, automobiles, recreational vehicles, campers; 2

1There are additional requirements regarding non flyable aircraft. 2 Th e FAA recognizes an aircraft owner may drive an automobile or ride a motorcycle o r bicycle to the airport and subsequently remove the aircraft from its hangar for aeronautical purposes. In such circumstances , the FAA does not consider temporarily parking the automobile , motorcycle, bicycle or other reasonable transportation used by the aircraft owner / user in the hangar to conflict with the hangar's aeronautical use. However, under no circumstances may a hangar located on airport property designated for ae ronautical use be used for the storage of an automobile or other nonaeronautical items
.

### 3

• Fork lifts; 

### • Welding equipment; • Drill presses; • Beds; • Household item s that do not have aeronautical purposes; and • Recreational/playground equipm ent (e.g. swing set s, golf clubs, fishing equipme nt). Again , this list represents just a few examples of ite m s that may not be sto red in aircraft hanga rs located on airport property d esig n ated for aeronautical use and charged aeronautical fees. T he airport own er has the right to imp ose additional restrictions how tenants use airport property as long as t he se restrictions are reasonable, nondiscriminatory and consistent with the airport owner's Federal grant assurances. The FAA recognizes there may be limited occasio ns when an aircraft owner /user may wis h to load and unload into the aircraft small supp li es of recreational items suc h as golf clubs or fishing equipment overni g ht before or after a trip in the aircraft. Howev er, any sto rage of thes e i tems must be limited to the single use and be re mov e d immediately b efo re or after the t rip
. To date , the Ci t y has undertaken numerous steps to correct the fmdin gs in the Director ' s Determin ation. The FAA wishes to commend the City for its efforts to b ecome a fully compliant a irport spon so r , thereby ens uring future eligibili ty to Fe deral pro gra m assistance. If you have any quest io n s on this matter or require additional assistance, please contact myself at (202) 267 -8 74 1 or Tony Garcia, the FAA's Western Pacific Region A irp ort Compliance Program Manager, at (3 1 0) 725-3634. Sincerely ,
Kevin C. Willis Manager , Airport Compliance
cc: FAA Part 16 Airport Pr oceedings Docket Western Pacific Region Airports Division, AWP-600 Los Angeles Airports D istrict Office

Co ntrol# G: / ACO/Ted Elle tt 7- 1 2.doc AC0 -10 0: Kevin Willis:78741 at: 7/ 5 / 12 cc: AC0- 100111ARPI A WP-600/Kevin