Guidebook for Through-the-Fence Operations (2014)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

ACRP Report 114: Guidebook for Through-The-Fence Operations152 APPENDIX C: TTF OPER ATION CASE STUDIES RESIDENTIAL TTF ACTIVITIES AIRPORT BACKGROUND Independence State Airport – 7S5 (Airport) is a federally obligated airport located in the City of Independence, Oregon (City). In addition to serving the communities of Independence and Monmouth, the Airport hosts one of the largest residential airparks at a publicly owned airport in the U.S. The Airport is situated approximately one mile north of the City. The Airport was constructed in 1966 with funding provided by the Oregon DOT, Board of Aeronautics, and the FAA. The Airport is owned and operated by the Oregon Department of Aviation (ODA). FAA classifies the Airport as a General Aviation - Local Airport, which mostly supports the flying of piston aircraft for business and personal/recreational purposes. The Airport covers an area of 83 acres which contains one 3,142’ by 60’ paved runway (Runway 16/34). There are approximately 288 single and multi-engine aircraft, 1 helicopter, and 5 ultra-light aircraft located on the Airport. This includes aircraft in the residential airpark and on-airport. In 2011, the Airport had approximately 34,000 annual operations. There are several on-airport commercial tenants including two FBOs – Nutsch Aviation and Independence Aviation. The FBOs offer Avgas fuel, pilot instruction, aircraft rental, and aircraft storage. There is also a restaurant located at the Airport, the Starduster Café. In 2007, the Airport’s economic impact included 87 jobs, $1.8 million in wages, and $5.4 million in business sales. TTF PROPERTY BACKGROUND The residential airpark adjacent to the Airport was initially developed by retired ODA employees in the early 1970s. Today, there are about 200 single-family residences within the residential airpark, each having TTF access to the Airport via one of several taxilanes/taxiways leading directly to hangars attached to single-family residences. Residences continue to be constructed within the airpark. All residences have attached hangars, as required by the City of Independence zoning ordinance. The design of the airpark is unique in that vehicle traffic enters at the front of the residence via public roads and only aircraft can access the taxiways located at the back of the residence, ensuring that vehicles and aircraft do not mix. There are 10 taxilanes/taxiways in the airpark located behind residences that feed into 5 TTF access taxilanes/taxiways that then connect to the parallel taxiway adjacent to Runway 16/34. No TTF access gates are utilized. Each residence is a member of one of two HOAs - the Independence Airpark HOA or the Independence North Park Annex Addition HOA. These HOAs, not the individual residents, have TTF agreements with the airport sponsor. One HOA, Independence Airpark, received its first access permit in 1974. The original term of the TTF agreement was for 30-years, which expired in 2004, at which point, a new TTF agreement was granted by ODA that now expires in 2034. The Independence North Park Annex Airpark was permitted access in the early 1990s and 10-year renewal options were granted. ASSESSMENT OF TTF OPERATIONS The State of Oregon and ODA has supported the development of the residential airpark at the Airport over the last 40 years. While the FAA has had concerns regarding residential TTF activities, ODA, the City, the HOAs, and airpark residents have worked closely with the FAA to ensure that the airpark is operating safely and generating TTF access fees while the Airport is still meeting all of its obligations. The TTF access fee is the same as the on-airport tiedown fee. The State Aviation Director has the authority to change the fees based on CPI and fair market value every five years. Currently, the revenues generated by TTF access fees are greater than all on-airport revenues. Additionally the aircraft located within the airpark helps support several businesses located on-airport including two FBOs and

153 ACRP Report 114: Guidebook for Through-The-Fence Operations a restaurant. The FAA Seattle Airport District Office has reviewed the TTF agreements and found them in compliance with the airport sponsor’s obligations and the FAA policies and guidance. The use of the land and buildings in the airpark must be in compliance with the base zoning district established by the City Zoning Map, and is further defined by Subchapter 48 of the City Development Code which defines the Residential Single-Family Airpark Overlay Zone. The purpose of the overlay zone is to “promote the public health and safety in the vicinity of airfields by minimizing exposure to crash hazards and high noise levels generated by air field operations by encouraging future development which is compatible with the continued operation of airfields, and established airpark development.” This zoning ordinance provides guidelines for height limitations, avigation easements, notification of buyers, and lot size and density, and requires that all residences have attached hangars. Polk County issues the building permits for residences in the airpark based on approval from the City. All entities work cooperatively to address issues regarding water drainage and utilities as well. Although a Residential TTF (RTTF) Access Plan has not yet been developed for the Airport, as recently required by the FAA, ODA plans to develop the RTTF Access Plan in conjunction with the next master plan. All TTF access points are identified on the current ALP. STRUCTURE OF TTF OPERATIONS ODA has TTF agreements with the two HOAs located in the airpark – Independence Airpark HOA and Independence North Airpark Annex Addition HOA. The TTF agreements grant the HOAs and the associated residents’ non-exclusive rights of TTF access to the Airport. The agreement stipulates that the ODA has the power to close or relocate the point of ingress/egress if the TTF access points pose a risk to the safety, utility, and efficiency of the Airport. Several key terms and conditions included in the agreement are as follows: Initial Term: 10 years, with option to renew for additional 10-year terms Payment: Each HOA must pay TTF access fees in the amount of $15 per month ($180 per year) for each developed residential lot whether or not the TTF access is being utilized or not Posting Point of Ingress/Egress: HOAs must place signs on property to control points of ingress/egress Prohibited Uses: Commercial operations, storage of non-aviation personal property on the Airport; use of vehicles, bicycles, pedestrians, animals, etc., on the Airport or through the TTF access points; transport of dangerous articles or magnetized material Assignment: • The TTF agreement cannot be assigned. • However, when ownership of an HOA residence changes, transfer of interest is acceptable. Construction/Alterations: Part 77 must be followed and Form 7460-1 must be filed when appropriate TTF Access: • Only aircraft are permitted on the Airport (e.g., runway, taxiway, etc.) • No vehicle parking or TTF access permitted ODA noted that the airpark positively impacts the community by providing a higher tax base. It was noted that 75 percent of the City property taxes come from the airpark, since the residences are typically large (3,000-6,000 square feet) and include attached hangars. The airpark is considered to be one of the most desirable neighborhoods in the City. The residences in the airpark rarely are put up for sale and when they do, they move quickly.

ACRP Report 114: Guidebook for Through-The-Fence Operations154 Maintenance: HOA must maintain all TTF access points in safe condition at all times as well as maintain adjacent property in reasonable fashion Hazardous Substances: HOA and membership shall not store, dispose of, or release hazardous substances on the Airport Organized Public Activities: HOA must request written approval from ODA before organized public activity using airspace or aircraft operational areas shall occur Indemnity: HOA holds ODA harmless from claim, demand, cost, expense, or suit against or suffered by ODA based on HOA or membership actions related to TTF access or the agreement Responsible Party: HOA can enforce terms of agreement according to provisions in CC&Rs Subordination: The provisions of the agreement are subordinate to existing or future agreements between ODA and the FAA ODA’s Right to Develop the Airport: ODA reserves the right to alter, develop, or improve the Airport to accommodate demand or safety MANAGEMENT OF TTF OPERATIONS While ODA has a TTF agreement with the HOAs, each of the HOAs at the Airport in turn has adopted CC&Rs as well as bylaws that govern the operations of the association and its residents. The State of Oregon has approval authority over residential airpark CC&Rs. Certain provisions of the CC&Rs mirror the terms and conditions of the TTF agreement: The airpark homeowners take safety and security at the Airport very seriously and residents closely follow the airport policies, standards, rules, and regulations of the ODA. Although the Airport is not fenced, residents maintain a level of vigilance to ensure appropriate operations are occurring at the Airport. Policies are enforced by ODA first with a verbal warning to the HOA, not the individual residence. The HOA is liable for enforcing the policies, standards, rules, and regulations and the collection of TTF access fees. It is up to the HOA to ensure all policies are understood and obeyed by residents. If an issue continues after verbal warning, a letter is sent to the HOA ordering compliance. ODA has the ability to terminate the TTF agreement with the HOA if breach of agreement continues. A termination of the agreement would mean that all residences that fall under the HOA would no longer have TTF access to the Airport. The relationship between ODA and the HOAs is extremely cooperative and there have been no issues with breach of agreement in the past. CONCLUSIONS AND LESSONS LEARNED The residential TTF activities at the Airport are considered successful because they represent a cooperative other users of the Airport to ensure the Airport operates in a safe, secure, compatible, and efficient manner. The Independence State Airport Support Group is an advisory group to ODA which includes local airport user groups and interested persons to help in the planning, developing, operating, and managing of the Airport. approach between the State, Polk County, City of Independence, the HOAs, residents, on-airport businesses, and

155ACRP Report 114: Guidebook for Through-The-Fence Operations COMMERCIAL AERONAUTICAL TTF ACTIVITIES AIRPORT BACKGROUND TTF PROPERTY BACKGROUND In the late 1970s, American Electronic Laboratories (which later merged with AEL Defense Corporation or AEL in 1991) purchased the TTF property from the Authority which consists of a 20.22 acre parcel of land located directly parallel to and west of the southern portion of runway 17/35. AEL constructed approximately 6.8 acres of facilities – primarily hangar, office, and shop – on the TTF property. It is significant to note that the hangar was constructed immediately adjacent to the Airport’s property line thereby providing direct access to the Airport’s apron area, which limits the ability of the Airport to limit TTF access to the Airport. West Star provides airframe maintenance and repair, engine maintenance and repair, major modifications, avionics maintenance and repair (and sales), interior refurbishment, paint, parts, and accessories from the TTF property. West Star serves a wide range of aircraft and focuses primarily on larger jets. The company’s economic impact (direct and indirect) on the Airport and the community is widely recognized. ASSESSMENT OF TTF OPERATIONS With regard to the TTF property, the Authority required West Star to pay for security improvements such as converting a manual vehicle TTF access gate to an electric gate. It is estimated that this conversion cost approximately $60,000. Commencing January 1, 2012 and continuing through December 31, 2016, West Star is required to pay the Authority an annual TTF access fee of $99,897. The access fee, which is based on the market value of the TTF property, is scheduled to be adjusted on January 1, 2016 based on the change in the Consumer Price Index (CPI). According to airport management, the TTF access fee exceeds all Authority operating expenses and capital expenditures associated with the TTF operation. AEL had a military aircraft refurbishment contract to convert F-106 to drones, but the company discontinued operations in 1987. Following AEL, the TTF property was purchased by Bi-State Properties which leased the property to several air cargo companies until 2001 when Completion Air began refurbishing B-767s and Boeing Business Jets on the TTF property. In 2002, West Star bought Premier Air Center (the on-airport FBO) and leased the TTF property from Bi-State Properties. In the 2004-2005 timeframe, West Star bought the TTF property from Bi-State Properties. Prior to West Star purchasing the TTF property, the Authority wanted to purchase the property back, but could not secure 10 million dollars in AIP funding to do so. The current TTF agreement contains a provision that provides the opportunity for the Authority to acquire the TTF property should AIP funding become available. The Airport serves general aviation customers from the recreational/pleasure, business/corporate, and industrial segments of the market as well as government and military customers. There are approximately 36,539 operations at the Airport of which 33,945 (or 93%) are general aviation. This case study is unique in as much as the TTF entity, West Star Aviation (West Star), is also the on-airport FBO. In addition to West Star, there is one non- commercial tenant, the Civil Air Patrol 286th Composite Squadron, located at the Airport. St. Louis Regional Airport – ALN (Airport) is a federally obligated airport located in Alton, Illinois. The Airport, which is classified in the NPIAS as a Reliever airport, is owned and operated by the St. Louis Regional Airport Authority (Authority). There are approximately 100 general aviation aircraft based at the Airport, which encompasses approximately 2,250 acres upon which two runways (8,099’ long by 150’ wide and 6,500’ long by 100’ wide) are situated.

ACRP Report 114: Guidebook for Through-The-Fence Operations156 All buildings on the TTF property comply with Part 77 and all other required setbacks. West Star is invited to participate in the creation, maintenance, and updating of the Airport’s snow removal, wildlife, emergency, and land use plans. As landside and airside TTF access had already been provided to the TTF property, the Authority did not incur any costs/expenses from a design and development perspective. With the Authority having no risk or development requirements, the TTF entity having demonstrated its ability to meet the required minimum standards and pay the TTF access fee, and TTF improvements that already compiled with Part 77 and other requirements, West Star was granted permission by the Authority to engage in commercial aeronautical TTF activities and have TTF access rights. STRUCTURE OF TTF OPERATIONS The Authority uses an Airfield Access and Use Permit as the TTF agreement to structure TTF operations. The term of the agreement began on September 5, 2005 and is scheduled to expire on December 31, 2021. The term of the agreement could expire sooner, provided the Authority receives AIP funding from the FAA to acquire the TTF property. The agreement grants the TTF entity the right of TTF access and use of the airfield airside infrastructure and Airport roads. It does not, however, create or convey any interest in real property of the Airport to the TTF entity. In addition to requiring that the TTF entity comply with regulatory measures, the agreement requires that the TTF entity repair any damages to Airport property – other than ordinary wear and tear. Any damages other than ordinary wear and tear that occur must be promptly repaired or replaced at the Permittee’s sole cost and expense. Under the agreement, the Authority maintains the right to terminate the agreement at any time if the TTF entity does not uphold the provisions of the agreement. The Authority also maintains the right to terminate the agreement if the Permittee files for bankruptcy protection or if a governmental authority, board, agency or officer having jurisdiction takes possession or control of the property for the benefit of creditors. The Authority may also terminate the agreement if the Permittee voluntarily abandons or discontinues operations for a continuous period of 90 days except where the abandonment is caused by natural disaster or a calamity beyond the Permittee’s control. Along with requiring compliance with regulatory measures, the agreement also requires the Permittee to commence and diligently pursue curing the applicable violation to the reasonable satisfaction of the Authority, FAA, or TSA – as appropriate within 72 hours of receiving notice of the violation. It is also important to note that along with the termination and use requirements, the agreement also contains personal conduct requirements which could lead to termination of the agreement if not followed. Personal conduct requirements that must be followed include: the Permittee shall control the conduct and demeanor of its agents and employees and the Permittee must take corrective action upon receipt of an objection from the Authority. The Permittee must also require employees to wear suitable attire and to wear or carry badges or other means of identification and ensure that it will not perform any acts that may damage Authority property beyond normal wear and tear. The agreement explicitly identifies the Permittee’s Airport TTF access points and restrictions. A map of the Airport is included in the agreement that highlights the TTF property and taxiway to gain access to the airfield. The agreement also identifies the road to use for gaining vehicular access to the Permittee’s TTF property. The agreement prohibits the Permittee from granting or selling access rights through the TTF property to third parties to gain access to the Airport’s airside infrastructure.

157 ACRP Report 114: Guidebook for Through-The-Fence Operations MANAGEMENT OF TTF OPERATIONS The Authority uses an Airfield Access and Use Permit as the TTF agreement to manage TTF operations as well. The agreement contains provisions addressing personal conduct, repairs to Authority property, subordination, compliance with the Authority’s rules and regulations and minimum standards, and TTF access points and restrictions, annual use and access fees with associated adjustment terms and conditions, assignment prohibitions, liabilities, indemnities and insurance, and the Authority’s right of termination. The agreement also includes as an appendix item the CGL. Inclusion of the CGL in the agreement is aimed to explain and answer any questions the Permittee may have about the Authority’s obligations in allowing TTF operations. The sections of Order 5190.6B that are applicable to TTF operations are also included as an appendix item. Including the appropriate sections of Order 5190.6B supplements the agreement by showing the Permittee that certain TTF requirements are dictated by the FAA and not solely by the Authority. By way of the agreement, the Authority seeks to achieve economic parity – between TTF entities and on-airport operators – by requiring that West Star pay an access fee of $99,897 which is based on the market value of the TTF property. This fee is payable in quarterly installments of $24,974.25. The Authority accounts for fluctuations in the market by requiring the access fee be reassessed according to the December 2015 CPI. The reassessed access fee will be computed by multiplying the current access fee payable for 2015 by a fraction with the numerator being the CPI published for December 2015 and the denominator being the CPI published for January 2012. The computed fee adjustment will be effective January 1, 2016 and will continue until the end of the term of the agreement. The Authority seeks to address safety and security by requiring that the TTF entity comply with the Airport’s rules and regulations. CONCLUSIONS AND LESSONS LEARNED TTF operations at ALN have been successful for a variety of reasons. With only one TTF entity, the Authority has been able to use a single TTF agreement and tailor it specifically for West Star’s TTF operation as opposed to trying to use a “one-size-fits-all” approach for multiple entities. There are no on-airport commercial operators competing with West Star. This eliminates any possible contention, perceived or real, that a TTF entity may have a competitive advantage over on-airport entities. Additionally, West Star is an established company that has demonstrated its ability to meet its financial obligations and as a result, the Authority has some “peace of mind” regarding the financial capacity of the company. Under the agreement, the Authority can acquire the TTF property if AIP funding can be secured for doing so. The Authority manages the TTF operation through an agreement which requires compliance with regulatory measures, airport minimum standards, and rules and regulations. As such, the Authority has the ability to modify its primary management and compliance documents as the situation and/or circumstances change at the Airport, in the market, and/or within the industry. By granting TTF access to West Star, the Authority has generated additional revenue, the community has realized significant economic benefits, and Airport customers have gained access to aircraft maintenance, repair and overhaul services which might not be available at the Airport otherwise.

ACRP Report 114: Guidebook for Through-The-Fence Operations158 NON-COMMERCIAL AERONAUTICAL TTF ACTIVITIES AIRPORT BACKGROUND Scottsdale Airport – SDL (Airport) is a federally obligated airport located in Scottsdale, Arizona and is owned and operated by the City of Scottsdale (City). The Airport encompasses approximately 335 acres with one non-precision instrument runway (8,249’ long by 100’ wide). Approximately 400 aircraft are based at the Airport and on the adjacent industrial airpark, the Scottsdale Airpark (Airpark). The Airport is classified by the FAA as a public use, reliever airport which serves both the recreational and business/corporate general aviation markets. It is served by a U.S. Customs facility with prior permission required to use Customs services. The City’s Aviation Department is the designated airport sponsor who owns and operates the Airport. The Airport has two FBOs, and several facilities which cater to aircraft storage on airport property. The Airport supports numerous SASOs such as aircraft charter, flight training, aircraft rental, and several types of specialized aeronautical services such as aircraft management, aircraft washing, avionics sales/repairs, aircraft maintenance, aircraft sales and aircraft catering. Based aircraft vary on a monthly basis, especially as Arizona has seasonal activity with peak periods during the fall and late winter months. Based aircraft for April 2013 were 114 jet aircraft, 44 twin aircraft, 210 single-engine aircraft and 15 helicopters. The majority of jet aircraft are based in the Airpark. During the winter/spring, the audience, such as the many local collector car auctions in January and the Phoenix Open golf tournament. In April 2013 monthly aircraft operations totaled 13,905, with 3,406 of those being IFR operations. TTF PROPERTY BACKGROUND The Airpark was originally envisioned to accommodate only non-commercial TTF operations. In the late 1960s the vision of a “clean” light-industrial airpark was just evolving. It was believed that businesses would establish offices or light manufacturing/warehouse facilities in the Airpark, and aircraft storage would only occur in conjunction with an otherwise permitted non-aeronautical TTF activity. Problems occurred when hangars would be built with “excess” capacity and the hangar owner wished to lease out the “excess” space to offset costs. Other early operational problems occurred when hangar facilities were developed that opened directly onto the taxilane/taxiway, essentially guaranteeing that “staging” aircraft would block free access to the taxilane/taxiway. Site design requirements were eventually instituted to require staging areas between hangars and the taxilane/taxiway to help minimize taxilane blockages. Some early facilities were also developed without attached office space, with the assumption that the required “otherwise permitted non-aeronautical business use” office space would be accommodated by other office or As the economy ebbed and flowed and the need for warehouse facilities increased, aircraft hangars that once accommodated only aircraft storage became manufacturing or warehouse facilities. Some generated a substantial number of daily deliveries with large trucks which because of the lack of staging areas would occur in the taxilane – blocking free flow of aircraft traffic. One such facility even became an assembly facility with manual laborers who on breaks would routinely stage “pickup” soccer games on the taxilane and would invariably hold up aircraft movements. Airport accommodates a significant number of transient jets which frequent the events that draw a national factory space located somewhere within the City of Scottsdale. Therefore, design requirements were subsequently established that all facilities with hangar space must also have a minimum of at least 1,000 square foot of office space attributed to each hangar that could accommodate the requirement for the “otherwise permitted non- aeronautical use.”

159ACRP Report 114: Guidebook for Through-The-Fence Operations The Airpark consists of privately owned commercial and industrial parcels, many of which have TTF access to the Airport through seven TTF access points. TTF access is controlled by six access points with large rolling access gates, and two non-gated direct access points. A wide variety of non-commercial and commercial aeronautical and non-aeronautical TTF activities are currently permitted in the Airpark. As of April 2013, 59 permits have been issued at the Airport to govern commercial aeronautical TTF activities within the Airpark, including aircraft and helicopter charter, aircraft and helicopter management, aircraft and helicopter sales, helicopter flight training, helicopter maintenance, and aircraft storage leasing. Additionally permits have been issued to govern non-commercial aeronautical TTF activities. Approximately 119 parcels are adjacent to Airpark taxilanes and 7 parcels have non-gated direct access, all of which can accommodate permitted TTF activities. The numbers of parcels with TTF access change as parcels are consolidated from smaller parcels, and as parcels are sub-divided into condominium hangars with fee simple ownership of hangars and communal ownership of shared staging areas. Of the total of 126 parcels that could accommodate TTF activity, there are approximately 110 individual or common use hangars in the Airpark on 55 lots constructed with hangar facilities. The remaining lots are either occupied by buildings with no hangar capacity to store aircraft or are undeveloped. At Scottsdale Airpark there is an example of just about every possible taxiway ownership type and access configuration (gated, non-gated, and both). Two of the original taxilanes accessed through Gates 1 and 2 are owned and maintained by the City of Scottsdale, but are not included in the Scottsdale Airport property inventory. These taxilanes essentially are in the City’s “alleyway” inventory for ownership and maintenance, except these serve aircraft. The property ownership boundary for these two taxilanes is the taxilane object free area. The taxilanes accessed through Gates 4, 5 and 6 are privately owned and maintained by a different property owner association. The taxiway centerline is the property ownership boundary in most instances for these Airpark taxilanes. The taxilane serving Gate 3 actually crosses a City- street (Redfield Road), with traffic and safety controls through a standard traffic signal that one would find at a street intersection, although aircraft are rarely housed at the hangars located south of Redfield Road. The taxilanes serving this area are a mixture of privately owned property with cross-access easements and the taxilane parcel still owned by the 7th Day Adventists Church but rarely used. The hangars with non-gated direct access are along Taxiway B and Taxiway C. The Taxiway C properties obtained direct access by constructing and then donating Taxiway C to the airport. The airport now maintains Taxiway C. Landside access to the Airpark taxilanes/taxiways is limited by facility design and operational regulations. Vehicle gates must be closed when not actively in use and architectural barriers are required to prevent inadvertent access to the taxilanes/taxiways which could potentially create safety issues for aircraft.

ACRP Report 114: Guidebook for Through-The-Fence Operations160 As new facilities are designed and permitted, only site plans that allow access directly from a landside parking lot to an aircraft hangar or staging area located outside of the taxilane object fee area are permitted. However, there are several older facilities that were permitted with poor vehicle access to the “hangar side” of the taxilane/taxiway, or poor design that required aircraft to launch or recover (e.g., “stage”) in the taxilane/taxiway, thereby effectively blocking other traffic. Appropriate facility design is a key element for successfully and safely permitting hangar facilities that could eventually accommodate significant TTF activity. ASSESSMENT OF TTF OPERATIONS The process by which new TTF operations are approved are outlined in the various airport sponsor ordinances and airport management and compliance documents of the Airport. Applicants must first complete an application and follow a detailed checklist provided by the airport management. The application is submitted to airport management with appropriate supporting information (i.e., required proof of insurance, proof of aircraft ownership/control, proof of hangar lease, etc.) for review by airport management and staff and approval by the Airport Commission. Some limited commercial aeronautical TTF activities are permitted in the Airpark for aircraft maintenance (including that of transient aircraft maintenance) as a pre-existing “grandfathered” activity due to previous issuance of a Conditional Use Permit (CUP) by City Council. However, regardless of any “grandfathered” status due to CUP issuance or other historic approvals for TTF activity, all current regulations and restrictions must also be obeyed. One of the more noteworthy elements of the Airport’s TTF operations is how the rules governing TTF operations have changed and evolved over its nearly 50 year history. Starting with purely non-commercial aeronautical TTF activities in 1966, in response to increasing demand for commercial aeronautical activities and limited development opportunities on-airport, commercial aeronautical TTF activities were permitted to expand into the Airpark. While often contentious and not easily resolved, a comprehensive public process engaged both airport tenants and TTF entities to develop the current regulatory framework throughout the late 1990s. While significantly expanding TTF activities in the Airpark, the regulatory framework balanced the need for maintaining compliance with federal obligations and FAA policies and guidance through imposing appropriate fees on TTF activities and TTF access. The development of an equitable fee structure for TTF activities and access was one of the most contentious issues and eventually a compromise was reached with on-airport FBOs, TTF SASOs, and non-commercial aeronautical TTF entities. The stated goal of the new fee structure was to not create an economic incentive detrimental to the Airport which would cause aeronautical activities to “flock” to the Airpark, leaving the Airport without sufficient operating revenue and limited ability to be financially self-sustaining. For approval of proposed development projects adjacent to the Airpark taxilanes, City regulations in Chapter 5 and other City Code govern the review and approval processes. The Airport Vicinity Development Guidelines and Checklist Long Form Packet describe the applicable criteria and design best practices required for City approval of all structures adjacent to the Airpark taxilanes. It is through this process that the airport sponsor meets federal obligations for ensuring compatible land use, protection of the airport operational capacity, compliance with the airport master plan, protection of NAVAIDs, etc. It is not uncommon for structures next to Airpark taxilanes to be developed with no accommodation for a hangar to facilitate future TTF activity, or for development of facilities that can act as warehouse and/or aircraft hangar purposes. Additionally, the Airpark has been in existence for nearly 50 years and redevelopment of parcels is also occurring. The development of “condominium” style hangar facilities has been a popular development in recent years as many TTF entities would prefer to not share hangar space to better protect aircraft from damage.

161 ACRP Report 114: Guidebook for Through-The-Fence Operations STRUCTURE OF TTF OPERATIONS The current regulatory framework at the Airport and Airpark is primarily governed through Chapter 5 – Aviation, of the Scottsdale City Code, and supported through other applicable codes for development review and approval. Chapter 5 authorizes the promulgation of rules and regulations to govern operational issues, minimum standards to govern commercial aeronautical activity, permits, fees and a layered approach to regulations for safety, business activity, development requirements and other best practices and guidelines for other issues such as environmental protection. The Scottsdale Airport/Airpark regulatory document hierarchy can be summarized as follows. Chapter Five - Aviation Code Airport Minimum Operating Standards Airport Rules and Regulations Airpark Minimum Operating Standards Airpark Rules and Regulations Airport and Airpark Rates and Fees Schedule Permits for TTF access do not expire unless otherwise cancelled or revoked and will continue to be in effect if the operator is in compliance with Chapter 5, and fee payment is in good standing. Chapter 5 defines criteria for non- approval of a permit application, and regulation enforcement procedures using civil citations and other civil and regulatory penalties for failure to comply. Extreme violations and repeated violations can result in an immediate denial of use for health and safety violations, along with grounds and procedures for permit revocation. Fees for TTF activities are defined in both the official Airport/Airpark Rates and Fee Schedule and the Airpark Minimum Operating Standards for commercial aeronautical activity with TTF operations. The basis for instituting a fee structure incorporated an element of cost recovery for wear and tear on the airfield pavements, and the cost of ongoing maintenance and capital improvements on the Airpark access gates controlling TTF access and airport- owned taxiways used exclusively by TTF entities, and airport administrative costs to administer the various airport programs. This overall cost for the impact of TTF activity was then loosely tied back to fuel sales for TTF operations, annual and monthly activity fees for TTF commercial aeronautical activity to reach an acceptable level of cost recovery for the airport, on-airport commercial operators (FBOs and other commercial aeronautical operators located on airport property) and fees for the TTF operators and commercial aeronautical business now authorized to conduct business in the Airpark. This is why fees for aircraft are higher based on MTOW and fees for activity involving helicopters are relatively small (since they don’t typically use the runway/taxiway system and aircraft access gates). In addition to aeronautical permit fees, TTF operators engaged in commercial aeronautical activities must also obtain proof of insurance and maintain such coverage as established by the Minimum Operating Standards for the TTF activity. TTF operators storing and operating aircraft off airport property may be required to meet certain insurance coverage if renting storage space in an Airpark hangar. MANAGEMENT OF TTF OPERATIONS The City’s regulatory approaches and permitted activities have changed significantly over the years and currently involve both operational regulations and to a lesser degree limited “grandfathered” zoning regulations to permit and regulate TTF operations. The regulatory structure has been modified several times since 1968. As the airport’s TTF operations have evolved over the years, significant stakeholder involvement has occurred from both on-airport commercial operators and TTF property owners and related entities.

ACRP Report 114: Guidebook for Through-The-Fence Operations162 Aircraft operators granted TTF access through a gated access point are issued a Gate Access Device which is registered to that particular operator and aircraft. Moving aircraft access devices to other aircraft or allowing use of the device by an unapproved purpose/person is a violation of the regulations. In the early days of the Airport/Airpark, simple garage door opener devices were issued and any device could be used on any access gate. Additionally as the opener devices were essentially common “garage door” openers and easily obtained through any number of vendors, unapproved devices were prevalent and the “coded” settings were commonly known among the Airport/Airpark operators. With the post 911 security upgrades at airports across the country, the Airpark access devices were also upgraded to have discrete codes for each access device and a centralized control system to better monitor access gate activity. This technology upgrade has significantly curtailed improper use of the Airpark access gates by unapproved aircraft (both based and transient). Accommodating “visiting” aircraft in the Airpark was poorly regulated in the past as no regulations were expressly written to control such activity. Under the new regulatory framework, regulations were developed to permit limited transient visiting aircraft with TTF activity only with submittal of a visiting aircraft form and prior permission of the Airport. The various fee structures and operational restrictions defined above are continually being adjusted to ensure economic parity between on-airport operations and off-airport TTF activity in the Airpark to benefit the self- sustainability of the Airport and ensure compliance with federal obligations. CONCLUSIONS AND LESSONS LEARNED Due to limited on-airport development opportunities and economic (and political) pressures, the City allowed commercial aeronautical TTF activities to take place in the Airpark, an expansion of the permission for TTF aircraft storage if not engaged in a commercial aeronautical TTF activity. Additionally, from the start of the Airpark there has been pressure to allow non-commercial TTF entities to sublease excess hangar space, essentially permitting a commercial aeronautical activity. In the case of Scottsdale Airport and other similar “landlocked” airports, permitting TTF activities may provide a desired additional revenue source to support the airport maintenance and capital improvement program, providing the many “hazards” to permitting TTF activity can be appropriately managed. In the case of Scottsdale, the initial regulatory approach for permitting only non-commercial TTF activity through zoning and development regulations was woefully inadequate to respond to the revolution in the aviation industry caused by the proliferation of aircraft management, charter, and timeshare/fractional ownership. Then the ability for TTF entities at the Scottsdale Airpark to self-fuel and the on-airport FBOs became very concerned that what was once a captive market for fueling of transient and based aircraft could easily taper off as more TTF operators began competing for the hangar rental and fuel sales market without meeting equivalent minimum standards. From the customer perspective at Scottsdale, very few on-airport facilities provided the single use “executive” hangar space they desired, and that very few on-airport aircraft storage locations could match. The TTF operators were willing to pay higher rents and higher TTF access fees to the airport, especially if it involved self-fueling with a lower per gallon cost than that from the on-airport FBO. By permitting TTF activities, the airport operator is essentially creating two airports: one they can manage more effectively due to the fact they own the land and can better control business activity through leases or permits. Airport operators do not have the same rights of entry on property they don’t control and far less effective legal remedies on privately held property where improper commercial aeronautical activity may or may not be occurring. However with appropriate staff support, support from the on-airport operators and TTF operators, and the appropriate mitigating controls, TTF activity can be effectively managed.

163 ACRP Report 114: Guidebook for Through-The-Fence Operations NON-AERONAUTICAL TTF OPERATIONS AIRPORT BACKGROUND Savannah/Hilton Head International Airport – SAV (Airport) is a federally obligated airport located in Savannah, Georgia. The Airport, which is classified in the NPIAS as a small hub primary commercial service airport, is owned and operated by the Savannah Airport Commission (Commission). There are approximately 125 based aircraft consisting of 79 single-engine, 19 multi-engine, 11 jet, 8 rotary, and 8 military aircraft. The Airport encompasses approximately 3,650 acres upon which two runways (9,351’ long by 150’ wide and 7,002’ long by 150’ wide) are situated. The Airport operational statistics for 2012 included enplanements/deplanements of 814,496/797,504; aircraft operations of 90,326; cargo (tons) of 7,595; and employment (direct) of 20,383 with an annual payroll of $869,501,600. The Airport serves a variety of aviation users including general aviation, commercial air service (passenger and cargo), military, and aircraft manufacturing. General aviation is served by two FBOS – Signature Flight Support and Sheltair, both providing fueling services, location based services, and aircraft storage. In addition to the two FBOs, the Airport has one SASO – Savannah Aviation, providing aircraft sales, aircraft rental, and flight training. Passenger commercial air service is provided by American Airlines, Delta, JetBlue, United, and US Airways. Cargo commercial air service is provided by Delta Air Lines, US Airways, UPS (through Air Now), DHL, and FedEx. Military use of the Airport consists of the 165th Airlift Wing, Georgia Air National Guard, which includes the 117th Air Control Squadron, 165th Air Support Operations Squadron, and the Combat Readiness Training Center. The final primary user is Gulfstream Aerospace, an aircraft manufacturer and subject of this case study. TTF PROPERTY BACKGROUND In 1967, the Commission sold 110 acres of land in the northeast corner of the Airport to Grumman Aircraft Engineering Company (now known as Gulfstream Aerospace) for $484,000. The land was used for the development of the company’s civilian aircraft manufacturing facility, previously located in Bethpage, New York alongside the company’s military aircraft production. Shortly after the completion of the $7.5 million civilian aircraft manufacturing plant for the Gulfstream II aircraft in June 1967, the workforce grew from 100 to over 1,700 employees within just a few short years. Gulfstream Aerospace now employs more than 5,000 employees on the TTF property. In addition to the TTF property owned by Gulfstream Aerospace, the company has leased over 300 additional acres of on-airport land and has invested tens of millions of dollars into on-airport infrastructure and improvements to expand the company’s manufacturing; maintenance, repair, and overhaul (MRO); and completion capabilities. In 2000, the company leased approximately 81 acres of on-airport land in the southeast corner of the Airport to develop a $5.5 million aircraft refurbishment and completions support facility that now employs approximately 1,500 employees. In 2007, Gulfstream leased approximately 77 acres of on-airport land in the southwest corner of the Airport to develop a service center that consisted of 330,951 square feet of of a second 348,722 square feet service center in the southwest corner of the Airport. Recently, Gulfstream leased 159 acres of on-airport land in the northwest corner of the Airport as part of the company’s $500 million expansion project on and off the airport that will add more than 1,000 employees. Today, Gulfstream Aerospace employs over 8,500 employees on and off the airport. Gulfstream also has a lease with FlightSafety International for land on the TTF property for a flight training facility for Gulfstream’s customers. This facility alone generates approximately 50,000 annual room nights at hotels located on-airport and an equal number of car rental days. facilities that now employ approximately 2,000 employees. Later in 2008, Gulfstream announced construction

ACRP Report 114: Guidebook for Through-The-Fence Operations164 ASSESSMENT OF TTF OPERATIONS From Gulfstream’s perspective, acquiring the land at the Airport and relocating the civilian aircraft manufacturing to the Airport was driven by the available supply of skilled labor, an established airfield adjacent to the manufacturing plant, and sufficient acreage for expansion. Additionally, the Airport’s location provided suitable transportation facilities for heavy equipment and machinery and favorable weather for year-round flight testing and training. Further, due to the significant investment in manufacturing facilities, it was/is the policy of the company to own the land associated with manufacturing facilities versus leasing land for maintenance, repair, and overhaul facilities. From the Commission’s perspective, the opportunity to attract jobs and investment associated with the company’s civil aircraft production was the primary driver in selling airport land to Grumman Aircraft Engineering Company and creating the TTF operation. At the time of the land sale, there was no other significant development on the airport or major employer. This was an opportunity to jump start growth at the Airport and in the community. While Gulfstream was desirous of purchasing additional land for the development of the service and completion centers (that were ultimately developed on leased on-airport land), due to federal obligations associated with the sale of airport land for aeronautical purposes, the Commission did not honor the request and instead was able to generate significant revenues for the Airport from leasing on-airport land to Gulfstream. STRUCTURE OF TTF OPERATIONS Gulfstream has deeded access to the Airport into perpetuity and does not pay a specific TTF access fee. In the alternative, Gulfstream pays a fuel flowage fee for all fuel delivered on the TTF property. Recognizing the significant traffic impact by company employees and customers, Gulfstream has worked cooperatively with the Commission on providing substantial funding for landside improvements that benefit Gulfstream TTF property and on-airport leased property. MANAGEMENT OF TTF OPERATIONS Airport, Gulfstream management, and the TSA regularly communicate and address any ongoing safety or security issues associated with the TTF operations. Most recently, due to increased activity levels on the TTF property, there has been a higher rate of incursions into the Airport’s movement area by people and vehicles associated with the TTF property and TTF activities. Gulfstream installed a fence separating the TTF property and Airport property except for the single 200 foot taxiway that provides TTF access. Since Gulfstream also has significant commercial aeronautical activities on-airport and is contractually bound within the lease agreements to comply with the Airport’s primary management and compliance tools (e.g., minimum standards, rules and regulations, etc.), Airport management and staff are able to enforce the Airport’s policies, standards, rules, and regulations on Gulfstream’s activities. CONCLUSIONS AND LESSONS LEARNED The Gulfstream TTF operation has been economically and financially beneficial for the Airport and the community. By initially allowing TTF operations, Gulfstream has expanded the company’s operations onto the Airport and increased employment significantly. Since 2006, Gulfstream has invested over $975 million on and development and expansion of commercial air carrier service, on-airport hotels, car rental service, and the leasing of other land and improvements to third party companies that support Gulfstream with goods and services. off the Airport and created 3,200 new jobs. Additionally, Gulfstream’s TTF activities have supported the

165ACRP Report 114: Guidebook for Through-The-Fence Operations GOVERNMENTAL/MILITARY TTF OPERATIONS AIRPORT BACKGROUND Cherry Capital Airport (Airport), a federally obligated airport located in Traverse City, Michigan, is owned and operated by the Northwestern Regional Airport Commission (Commission). The Grand Traverse region is the world’s largest producer of tart cherries, with over three million tart cherry trees within the area’s commercial orchards – hence the Airport’s name, the Cherry Capital Airport. The Airport has three TTF operations; one with the United States Coast Guard (Coast Guard), one with the Northwestern Michigan College (College) Aviation Program (both which fall into the governmental/military TTF activities) and a third with a local television station, which falls into the non-commercial aeronautical TTF activity. The Airport has had a mix of use over the course of its existence having supported commercial operations and military operations at different times, and most recently a combination of these uses with commercial passenger traffic, search and rescue operations from the Coast Guard, and flight training offered by the College. Currently, the Airport is host to a number of aeronautical uses including three commercial airline tenants (American, Delta and United), a number of general aviation tenants including private general aviation aircraft and corporate flight departments, charter companies and maintenance facilities, as well as a number of FBOs. The Airport is classified by the FAA as a primary airport in NPIAS and encompasses approximately 1,026 acres upon which two runways (6,500 feet long by 150 feet wide and 5,378 feet long by 150 feet wide) are situated. There are approximately 78 fixed-wing aircraft and six helicopters that are based at the Airport with approximately 84,880 total aircraft operations reported in 2012. TTF PROPERTY BACKGROUND As mentioned previously, the Airport has two TTF operations which can be classified as governmental/military TTF activities. The first of these is the United States Coast Guard which operates an Air Station for helicopters that conduct search and rescue missions for marine traffic on Lake Michigan, Lake Superior, and Lake Huron. The Coast Guard is located on the northern side of the airfield and has a ramp area of about 400,000 square feet, with one hangar that houses aircraft (five Eurocopter MH-65 Dolphin helicopters). Several smaller support buildings are located on the property as well, north of the hangar. The airside access to the Coast Guard ramp is provided by a dedicated taxilane that connects to the parallel taxiway adjacent to runway 10/28. While the helicopters often hover-taxi to and from the Coast Guard facility, Coast Guard fixed-wing aircraft on occasion use the taxiway to access the site. Since the Air Station is a military installation, TTF access is tightly controlled and secured from the public by the Coast Guard. The second governmental/military TTF use is the College Aviation Program which conducts student pilot training at the Airport. The College operates 14 aircraft including eight Cessna 172s (one with retractable gear), two Cessna 152s, one Decathlon, one Super Cub seaplane, and two Piper Aztecs. This College is also located on the northern side of the airfield and includes a hangar with classrooms as well as an apron area and landside vehicle parking. Airport security regulations and TTF access are controlled by the College as a result of a cooperative and supportive relationship between the College and the Airport. It should be noted that while this TTF operation is mostly self-supported, the Airport does provide services to the College to help maintain its apron pavement. ASSESSMENT OF TTF OPERATIONS Due to the cooperative relationships with the three TTF entities and the valuable services provided to the Airport and the local community, the Airport is willing to continue to allow TTF operations, as long as they are conducted in a safe manner and do not have any negative operational impacts.

ACRP Report 114: Guidebook for Through-The-Fence Operations166 The life-saving operations of the Coast Guard benefit not only the surrounding region, but also recreational and commercial marine traffic throughout the entire upper Great Lakes. Additionally, the Coast Guard has been supportive of the needs of the Airport and is often involved with planning and other large scale decision making efforts. The College benefits not only the Airport, but also the local community. The frequent flight training activity conducted by the College contributes to the need for an air traffic control tower as well as toward justification for airfield infrastructure improvements. The level of economic activity generated from the flight school also contributes to the economy of the Airport as well as to other businesses and support services throughout the local region. Finally, while the television station does not currently conduct any aeronautical related TTF activity, it has demonstrated a cooperative and supportive TTF relationship with the Airport. STRUCTURE OF TTF OPERATIONS The Airport utilizes a set of self-developed minimum standards to govern TTF operations. The minimum standards reflect federal obligations and include language that specifically outlines the responsibilities of TTF entities. In addition to the minimum standards, the Airport has TTF agreements with both the College and the television station that provides only the current property owners with access to the Airport and specifies the annual TTF access fee and other responsibilities for maintaining TTF operations. MANAGEMENT OF TTF OPERATIONS The Airport manages TTF operations through the TTF agreements with the TTF entities. TTF access provided in these agreements applies only to the current property owner and is not included in the property deed. As previously mentioned, the Airport has these agreements with two of the three TTF operations (College and the television station). The Coast Guard does not have a TTF agreement with the Airport. The College has a TTF agreement that has been in effect since the 1970s and pays $700 a year to access the Airport. According to the agreement, the College is allowed to engage in self-fueling and the Airport maintains the apron. The College secures its property and access to the airfield through a badging program for all students and faculty in the Aviation Program, which costs around $2,500 a year. Although the Coast Guard does not have a TTF agreement with the Airport, and is not charged a fee for conducting TTF operations, its relationship as a governmental and military entity eliminates the need for an agreement outlining TTF security responsibilities and business competition clauses. In fact, the presence of the Coast Guard helps contribute to the safety and security of Airport operations. It should be noted that while the Coast Guard is responsible for maintaining the ramp and facilities, the Airport offers assistance when requested. CONCLUSIONS AND LESSONS LEARNED All three TTF operations are beneficial to the Airport, its operation, and the surrounding community. The mission of the Coast Guard for marine search and rescue operations is invaluable not only to the local Traverse City community, but for all marine traffic operating in the upper Great Lakes region. Likewise, the flight training activities of the Northwestern Michigan College Aviation Program contributes to the infrastructure improvement needs and economy of the Airport and the surrounding community. Keeping strong lines of communication between the Airport and the TTF entities has been critical to the success and safety of TTF operations at the Airport. As demonstrated through the cooperative agreements and strong relationships, a successful TTF operations program can be implemented if all parties understand the needs, concerns, federal obligations, and security responsibilities of an airport and the benefits of the TTF operation to the airport community and surrounding region.