FAA DROPS REPAYMENT DEMAND AIRPORT MUST SELL 55 ACRES THAT WON'T BE USED.Byline: Susan Abram Staff Writer BURBANK - The Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control has dropped its demand that the Burbank Airport repay all $46 million in grants awarded for a yet-to-be-built passenger terminal. Instead, the Burbank Airport Authority has been given 30 days to appraise appraise v. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or in certain cases the loss of value (or cost of replacement) due to damage. 55 acres of the 139-acre site at issue and reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. the FAA for their fair market value - roughly $25 million. ``The net result is we don't have to pay back as much money as we thought,'' Airport Authority President Chris Holden said Tuesday. ``It may offer an opportunity for the authority to look at its resources and see whether or not priorities can be shifted, to pay back the FAA.'' In a letter dated Monday, FAA officials agreed to exclude 84 acres of land that was not purchased with federal grants, land that can be used for noise- and safety-related projects. The entire 139 acres are bordered by Hollywood Way, Vanowen Street, and San Fernando Road San Fernando Road is a major street in the city and county of Los Angeles. It starts off in Castaic as The Old Road, passing through Santa Clarita and the Newhall Pass, where upon its intersection with Sierra Highway near the junction of the Golden State (I-5) and the . In February, the FAA ordered the Burbank Airport Authority to repay the passenger terminal funds after plans to build a new terminal failed to gain community backing. In May, the authority proposed that rather than reimburse the agency for the terminal grants, the land should be put to airport-related uses and the repayment be forgiven. Monday's letter was the FAA's response to that proposal. ``As we previously advised your staff, when land is no longer required for airport purposes, the airport sponsor must dispose of the land at fair- market value,'' wrote FAA chief Marion Blakey Marion Clifton Blakey (born March 26, 1948) was the 15th Administrator of the Federal Aviation Administration. She was the second woman to hold the position, serving as a successor to Jane Garvey, the first woman to hold the Administrator title. . ``We ask that, within the next 30 days, you retain an appraiser A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property. Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market and determine the fair-market value of the 55-acres subject to reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. .'' Some of that acreage had been proposed as a site for a Glendale/Burbank California National Guard The California National Guard is the component of the United States National Guard in the U.S. state of California. It comprises both Army and Air National Guard components. Armory. The FAA found that the relocation of the armory was not a security enhancement project and did not serve an airport. The FAA would not comment further on the letter, or how the agency would respond if the authority did not pay back the funds. ``The letter is very detailed and can certainly speak for itself,'' said FAA Western-Pacific Region spokesman Donn Walker. Holden said the FAA's response, though direct, allows the authority the option to use its reserves to pay back the money and keep the land. Those reserves, however, have been earmarked to fund security enhancements. ``That's a lot to invest in land that you can't develop at this moment,'' he said. ``That's not a good business decision.'' Jack Kyser, chief economic adviser for the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Economic Development Corp., said some likely buyers would be Federal Express or a large firm that needs easy access to flights. ``For certain kinds of firms, this land would be attractive,'' Kyser said. ``It's a major service point, especially for people who depend on quick air service.'' Holden said the authority will consider all options and will hold a public meeting Monday. ``I think the authority, by and large, is burned out on this project, but I think the authority is open to creative ideas as to what to do,'' he said. Susan Abram, (818) 546-3304 susan.abram(at)dailynews.com |
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