KKR – Airport Law Alert, FAA Section 163 Land Use Policy, September 2022

FAA Issues Potentially Sweeping Changes to Airport Land Use Regulation September 16, 2022 The Federal Aviation Administration (FAA) has published a Draft FAA Policy Regarding Processing Land Use Changes on Federally Acquired or Federally Conveyed Airport Land (the “Policy”). The proposed Policy is available here. The Policy addresses how the FAA will review and approve sponsor requests to use certain airport property for non-aeronautical purposes. The proposal has potentially significant implications for airport sponsors’ leasing practices. Because of the open questions presented by the Policy and the apparent nature of the proposed changes, sponsors should strongly consider commenting prior to the October 17, 2022 deadline. The FAA’s stated purpose in adopting the Policy is to “confirm[] and clarify[y] its prior policy and practice regarding the implementation of its statutory responsibility to review and approve or consent to, or deny, requests for land use changes on federally acquired or federally conveyed land.” However, the Policy has the potential to significantly change certain elements of the way that the FAA considers and approves sponsor requests for non-aeronautical and mixed use of airport property. Applicability. FAA has previously issued guidance to implement Section 163 of the FAA Reauthorization Act of 2018, which generally limits the FAA’s authority to regulate the use of airport property. The FAA’s new land use Policy would apply where Section 163 does not: that is, to land use changes (1) on airport property acquired by the sponsor with federal assistance or through a federal surplus property donation or (2)…
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