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APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT <br /> APPENDIX <br /> <br />Airport Strategic Business Plan, 07/26/2021 54 <br />E. AIRPORT SPONSOR ASSURANCES <br />The rights and responsibilities of airport sponsors of federally obligated airports are based <br />on Federal law and are codified at 49 U.S.C. Section 47107. In exchange for Federal <br />airport development assistance (including the transfer of Federal property for airport <br />purposes), airport sponsors make binding commitments to assure that the public’s <br />interest in civil aviation will be served. An airport sponsor’s responsibilities are commonly <br />referred to as the Airport Sponsor Assurances (Assurances). While the language of certain <br />Assurances may be identical to or closely track the language of the statute, the Assurances <br />are more expansive and reflect the FAA’s interpretation and application of the statute. The <br />Assurances have the following general features: <br /> Currently, there are 39 Assurances, several of which have multiple sub-parts. <br /> A number of Assurances require satisfaction of other statutory provisions and/or FAA <br />regulations, policies, and guidance. For example, Assurance 1 requires compliance <br />with 26 distinct laws, including 49 U.S.C., Subtitle VII (Aviation Programs). Assurance <br />34 requires that any AIP project conform to current FAA policies, standards, and <br />specifications, including current FAA Advisory Circulars. <br /> The Assurances generally apply for 20 years. However, some of the Assurances apply <br />in perpetuity as a result of separate statutory requirements. These include the <br />prohibition on granting an exclusive right and the requirement to use airport revenue <br />only for airport purposes. Additionally, the Assurances associated with the use and <br />disposal or real property apply in perpetuity when the airport sponsor has received <br />AIP funds in connection with the acquisition of property. <br /> The penalties for violating the Assurances are severe. The FAA may withhold approval <br />of a grant and may withhold payment under an existing grant agreement. The FAA <br />also may seek injunctive relief in U.S. District Court. <br />The following will serve as a guide to current FAA policy interpretation of the Assurances <br />which are commonly at issue for airport sponsors at federally obligated airports. <br />Airport Sponsor Rights and Powers: Assurance 5 (Preserving Rights and Powers) <br />requires that the airport sponsor of a federally obligated airport: <br /> “...will not take or permit any action which would operate to deprive it of any of the <br />rights and powers necessary to perform any or all of the terms conditions, and <br />assurances in the grant agreement without the written approval of the Secretary, <br />and will act promptly to acquire, extinguish or modify any outstanding rights or claims <br />of right of others which would interfere with such performance by the sponsor.” <br />Put simply, an airport sponsor is prohibited from taking any action which could preclude <br />it from complying with the Assurances. For example, an airport sponsor may not enter <br />into a management agreement which would result in exclusive use or discrimination at <br />the airport. Airport sponsors are strongly encouraged to use strong subordination clauses <br />to ensure the ability to comply with Assurance 5 is not impacted.