Non-Aeronautical Use of Hangars Update Dave Cushing Manager, Los Angeles Airports District Office Brendan O’Reilly, C.A.E. Airport Manager, Fullerton Municipal Airport

BACKGROUND Airport Sponsor’s grant assurance obligations require that its aeronautical facilities be used or be available for aeronautical activities. Grant Assurance 19 – Operation and Maintenance – Sponsor prohibited from permitting any activity that would interfere with use of airport property for airport purposes Grant Assurance 22 – Economic Nondiscrimination – Sponsor required to make the airport available on reasonable terms and without unjust discrimination for aeronautical activities

BACKGROUND Continued 1999 Government Accountability Office (GAO) report to Secretary of Transportation – General Aviation Airports: Unauthorized Land Use Highlights Need for Improved Oversight and Enforcement FAA begins conducting land use inspections at 18 airports each year

DISCUSSION Frequent finding of FAA compliance inspections has been the prevalence of non-aeronautical items stored in aircraft hangars Many airports built to accommodate aviation demand from the 1990’s. Economic recessions left many airport sponsors with excess hangar capacity Grant Assurance 24 – Fee and Rental Structure – Sponsor to maintain a fee and rental structure for facilities and services at the airport which will make the airport as self sustaining as possible under circumstances at that particular airport

FAA Responds with Statement of Policy Aeronautical users requesting use of hangars for aircraft storage shall not be denied access because the airport sponsor is permitting tenants to use the hangars to store vehicles or household items, or to operate non-aviation businesses. Airport sponsors should receive fair market rental for approved use of airport property for non-aviation purposes Incidental storage of non-aviation items allowed If sponsor has excess hangar capacity, FAA may approve interim non-aeronautical storage agreement Active aircraft assembly considered an aeronautical use. Using hangar space as a residence not permitted Sponsors expected to take measures to ensure aeronautical facilities are reserved for aeronautical use Sponsor may adopt more stringent rules for hangars than what is required by FAA based on safety Sponsors federal obligations do not protect non-aeronautical users

High Vacancies 36 Large Boxes (42’ x 36’) and 7 smaller boxes (42’ x 33’), construction completed in 2008. Box Hangar Vacancy Rate of 15 -20% since new. Revenue loss of $49,000 - $100,000 annually on large boxes and $36,000 on smaller boxes. Marketing efforts produced no results

2013 Comparisons Surrounding airport comparisons show that Fullerton is overpriced at $0.55/sq. ft. Chino Airport - $ 0.30* Riverside - $ 0.31 Oxnard - $ 0.33 Camarillo - $ 0.36* Whiteman - $ 0.45* El Monte - $ 0.51 * average

Actions Request made to LAX-ADO to allow non-aeronautical storage for five year term Letter of Request Map showing intended area of non-aeronautical storage Non-aeronautical lease agreement draft FAA granted authority to execute non-aeronautical leases on Oct 1, 2014. No new non-aeronautical tenants were accepted, existing were required to execute a new lease agreement. New hangar rates of $ 0.45 sq. ft. for aeronautical use and $ 0.65 sq. ft. for non-aeronautical use.

Further Information Documents: Federal Register – Policy on the Non-Aeronautical Use of Airport Hangars, Dated 07-22-2014 FAA Order 5190.6B – Airport Compliance Manual, paragraph 22.6 Websites: www.faa.gov/regulations_policies www.gpoaccess.gov/index.html Contacts: Kevin C. Willis, Manager, Airport Compliance Division Washington, DC (202) 267-3085 Dave Cushing, Manager – LAX - ADO (310) 725-3644 James Lomen, Manager - SFO - ADO (650) 827-7601