Total Pageviews

Tuesday, July 4, 2017

THE NO RESPONSE RESPONSE.



THE NO RESPONSE RESPONSE. 
Let’s use an example of a public federally obligated airport.  Someone is using airport property for a non- aeronautical purpose.   The airport for whatever reason needs some extra cash.   The city states that they are going to have to raise hangar rents to cover the situation.  What does a tenant do? 
As an airport tenant, you have the right to review Sponsor provided documentation that supports the raise in rental rates, and provide input into the situation.  GOOD LUCK.   If you managed to get the financials, and no rent for the nonaeronautical use is documented, what do you do?  Call the FAA!!!  As soon as you hang up the phone, the phone call never happened.  File a written complaint!!  EVEN IF MODOT AND THE FAA FIND THE SPONSOR IN VIOLATION, THEY WILL WRITE A LETTER TELLING THE SPONSOR, THEY MIGHT BE IN VIOLATION.  The city can respond with complete”BS”, it won’t matter as long as they responded with something.   After that it’s over.  As long as the authorities have documentation that shows the sponsor was contacted it is final.  No follow up, no further enforcement, no solution to a problem is necessary.  The sponsor can end it by just not responding to anything.   
In the mean time the rent goes up, the Non aeronautical user is still there.  You request more information and find out that the city is not depositing the non aeronautical use rent in the airport account.  After all it is city property.  This is also revenue diversion. 
The FAA will not proceed with a rates and charges complaint unless the complainant can show that the airport is producing surplus revenue.   And even if the complainant can show proof, there is a 90% chance they will not enforce.  The Feds have this invisible dollar amount that must be met before revenue diversion will be addressed, and it fluctuates. 
At St. Clair Regional it was finally addressed when the rent went from $175 to $300.  The rent did stay at $175, but the city was given preferential treatment on the revenue diversion for the use of the maintenance hangar.  The issue of raising rent to force tenants off of the field was never followed up on,  after they city failed to respond to MoDOT. 

No comments:

Post a Comment