Memorandum
City of Lawrence
Public Works
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TO: |
David L. Corliss, Diane Stoddard, Cynthia Boecker |
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FROM: |
Charles F. Soules |
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CC: |
Mark Thiel, Steve Bennett |
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Date: |
August 13, 2009 |
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RE: |
Lawrence Municipal Airport Land Acquisition - Update AIP Project No. 3-20-0047-15 |
Overview: In 2008, the city of Lawrence was directed by the Federal Aviation Administration (FAA) to acquire four parcels of property adjacent to runway surfaces at the Lawrence Municipal Airport. The purpose of this land acquisition is to satisfy FAA’s concern about potential development encroachment within the designated Runway Protection Zones (RPZ) located at the ends of Runway 1/ 19.
While the FAA has encouraged the city for many years to purchase these parcels, especially Tract 23 and Tract 24 on Exhibit A, the city and the property owners have co-existed for many years under terms of an Avigation Easement which allowed the city to lease this property to protect the RPZ requirements as dictated by FAA while allowing the property owner to maintain an agricultural interest and revenue stream from the property. It is now FAA policy for airport sponsors to own outright all property at its airport.
In 2007 the owner of Tract 23 entered into a development agreement with a local firm to create an industrial park complex of more than 120 acres, which included acreage bordering and encroaching into the RPZ area of Tract 23. If such development had occurred within the RPZ, as originally planned, the city would be in violation of FAA grant assurances best practices, and risked financial penalties to FAA for non-compliance.
As land acquisition is eligible for a local sponsor under the Airport Improvement Program (AIP), the FAA has budgeted funds to assist the City of Lawrence to acquire this property. AIP projects enjoy a 95 – 5 percent FAA to airport sponsor funding match. The City of Lawrence will be obligated for 5 percent of the purchase price of this land acquisition project.
Process: Since the initiation of this AIP eligible project, Airport Development Group, Inc. (ADG), the city’s designated airport consultant, has moved through several benchmarks in this process to position the city to properly prepare and execute offers to purchase the designated properties.
ADG has completed the following steps:
1. Develop Airport Property Map that clearly delineates the land to be required.
2. Consult with the FAA Project Manager to verify that proposed parcels are identified on the approved Airport Layout Plan.
3. Verify environmental requirements of the National Environmental Policy Act are met.
4. Prepare survey for proposed property acquisition.
5. Order preliminary title search to confirm ownership and encumbrances on property title.
6. Select and negotiate contract for qualified appraiser and review appraiser.
7. Select and negotiate contract for Environmental Site Assessment (ESA) consultant.
8. Select and negotiate contract for qualified land acquisition consultant.
9. Conduct Environmental Site Assessment of property suspected of being contaminated.
10. Perform appraisals and appraisal review and approve appraised fair market value. The property owner shall be given the opportunity to accompany the appraiser on the inspection of the property.
11. Submit appraisal and review appraisal reports to FAA.
Next Steps
In light of the initiation of the application for rezoning and the plans for utility extensions to the airport, the appraisals will need to be reviewed. Following that review:
12. Make written offer of just compensation. At initiation of negotiations, provide general notice of the property owner's rights and entitlements on the acquisition of their property.
13. Negotiate purchase agreement. If reasonable attempts to negotiate an agreement or acceptable settlement are unsuccessful, the acquisition may be referred to the sponsor's attorney for condemnation under the airport's eminent domain authority.
14. Closing/court award, title conveyance, and scheduled possession of acquired property.
15. Furnish project application with Exhibit ‘A’ Property Map and land acquisition cost breakdown sheet, Certification of Environmental Site Assessment, Certificate of Title, and Sponsor Certification for Real Property.
16. Execute grant agreement.
17. Submit final Request For Reimbursement (RFR) to FAA and make final drawdown of project funds.
It important to note that the landowner does not have to agree to the purchase offer as presented by the city. Negotiations/arbitration or legal proceedings could increase the purchase price; and in some cases the excess amount, based on the appraisals, would not be AIP eligible and be the obligation of the city to fund.
Funding
The FAA has budgeted $300,000 for land acquisition under this AIP project. The city’s share will be in the range of $15,000 to $25,000 based on final negotiated purchase prices. At this time the City has an open contract with ADG in the amount of $40,000. They have expended $30,316.30. ADG has acted on the City’s behalf to contract for the survey, appraisals, title work and environmental review. The subcontractor costs are estimated at $22,445 and are not included within the scope of services with ADG. To date the subcontractor cost is $18,845.00. This is a reimbursement program and once the property is acquired the City will be reimbursed 95% of the costs.
ADG is also recommending to the city that Tracts 23, 24 and 29 not be leased for agricultural enterprises, i.e. – crop farming, the new FAA guidelines against agricultural crop farming on airport property to mitigate bird populations on airports and reduce the potential for bird strikes against aircraft operating at the airport.
Action Requested: Authorize City Manager to increase the purchase order with Airport Development Group, Inc. (ADG) in an amount of $22,445 for subcontractor costs associated with the airport property acquisition project.
Respectfully submitted,
Charles F. Soules, P.E.
Director of Public Works
CFS/je