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SR-9-B (2) / , ~ . qs tf~tJ- ~() g . JUN 2. 3 '98' CA:RMM:SSS Councll Meeting 6-23-81 Santa Monica, CalifornIa SPECIAL STAFF REPORT ON THE AIRPORT To: Mayor and City CouncIl From: City Attorney Subject: Report on plans for AIrport Development I. INTRODUCTION. Requested by the City CouncIl on May 5. 1981, this report concerns ways to plan future development of the property on WhlCh the municipal aIrport IS located. It contains a history of the development of the airport property, a discussion of legal Issues, and alternative ways of implementing the planned, phased development of the site. It is assumed that the City Council's prImary goal IS to put the aIrport property to its hlghest and best use, including maximum revenue to the CIty, overall communIty benefit, and env ironmental protection. If continued airport use IS determIned to be Incompatible with this goal, the CIty must remove legal obstacles to aIrport closure and institute plannIng and enviJ:onmental lmpact processes. If the City des1res to or must maintain an aIrport, it should develop the property in planned phases. It should evaluate alternatIve land uses compatible with aviatIon actIvltles, and reg ula te airport nOIse and unsafe traffic In order to protect the enV1ronment and avoId liabllity. pending leg al disputes with lessees should be resolved wIthout delay, in order to secure rnaXlmum development flexibilIty and. continous 98 'JUN 2 3 1981 . . . revenue. Fixed-base aviatlon operatlons should be loca ted to allow maXlmum development of alternative uses elsewhere on the property. They should provlde necessary aVlatlon services and genecate maXlmum revenue conslstent wlth envlronmental protectlon. The preparation of a "speclflc plan" is recommended for the phased development of the airport property, as authorlzed by Government Code Sectlon 65450 et seg. All interested segments of the community, includlng airport nelghbors, aviatlon lnterests, commercial and resldential developers. and the FAA, should be invited to part1cipate in the preparatlon of the plan. The Airport and Planning Commissions should review the plan and transmit lt to the City Councll for approval. City staff, wlth the aid of necessary technlcal consultants, should analyze the plan for conslstency wlth the Clty'S General Plan. for environmental impact, and for alrport noise and land use compatlbll1ty. Approprlate development agreements, zoning changes. and other regulatlons would follow approval of the plan. It lS also recommended that negotiations begln Wl th existing fixed base operators for the settlement of all li tigation and the transfer of alrport operations from the South slde of the runway to the North side, thereby allowlng non-aviation development to proceed on the South slde. II. HISTORY OF AIRPORT DEVELOPMENT. The property known as Clover Field has been used as an au:port for apProximately 60 years. The type and intensity of this aVlation use has changed several times. The caUl: se of the 2 . . property's history has been affected by varIOUS factors. Among these are the presence of the Douglas Aircraft Company, the growth of the sur round lng neIghborhood into its suburban character, the role of the UnIted States Government, changes in aviation growth and technology. and the CIty'S need to generate revenue and provIde serVIces withln economic Ilmi tatlons. For convenience, we have analyzed the development history of the airport in stages: l'he Early Years (1920-1940) . The City acqu1res Clover Field with bonds authorized for publIC park purposes. Douglas becomes an aVIation pioneer. The neighborhood grows around Douglas. World War II (1941-1946) . The Unl.ted States leases the airport and uses It for milItary purposes. The runway is Improved; the Cl ty agrees to maIntain an airport for the lIfe of the lmprovements. Pos t-War ExpansIon (1946-59). The United States transfers the airport back to the Clty. ReSIdentIal growth expands. The CIty enters Into leases and grant agreements, antiCIpating a rise in aVIatIon actIVIty. An Airport Master Plan for an expanded faciE ty 1S developed. Aviation Development and Jet NOIse (1960-1974). The CIty enters Into more grants agreements and leases. The airport is one of the busiest ln the country. The executive Jet is developed, leading to nOIse complaints, and neighbors sue for property damage from noise. The United states claIms to preempt regulation of alrcraft, and warns agaInst closure. 3 r . . NOIse Regulation and the Loss of Douglas (1975-80). Doug las moves from Santa Monica; Its property is developed as a busIness park. The City bans Jets and adopts othec nOIse regulations; a 1awsult IS brought by aviatIon interests. TraffIc at the airport lessens. The "qUIet jet" IS developed. The nOlse level is lowered; a second sUlt IS filed. The Current Controversy (I980-present). The City's ability to tax and s pe nd funds IS hmi ted. An economIC study of alternative uses is made. Monthly tenanCIes are terminated. A moratorium on development pendIng an overhaul of the CIty'S plans IS enacted. A more detailed diSCUSSIon of events In each stage follows. A. THE EARLY YEARS. l. Clover Field (In fact a barley field) was used as an air-field In the early 1920's. The property was leased by the CI ty from the Stanton family. 2. In 1926, the CI ty Council passed Ocd~nance 339(CS), declarIng the necessity of acquiring and improving Clover Fleld for publIC park purposes. and submItted a ballot measure to the voters which authorized the Issuance of $860,000 in bonds. The measure passed by the necessary 2/3 vote. and the CIty acqUIred ti tle to the land. The deed IS unrestrIcted, and the bonds were retired in 1965. 3. In 1927. the State LegIslature passed a law declaring that muniCIpal property acqUIred for park purposes could be used as an airport. 4 . . 4. In 1928, the Douglas Company leased a part of Clover Field from the City. It used the fIeld to test its "DC" serles of planes, WhlCh were manufactured In Santa Monica. 5. Several Douglas employees purchased homes in the nelghborhoods surroundIng the airport. B. WORLD WAR II. 1. In 1941, the City leases 170 acres of aIrport property to the United States Government for natIonal defense purposes. 2. DurIng World War II. the aIrport was used by the mil i tary, as well as by defense contractors such as Douglas. 3. The Government Improved the airport by constructIng a control tower, hangars, a serVIce road. fencing, and a concrete runway and taxiway. The cost of these 1mprovements was approxImately $795,000. 4. In 1944, the Government and the City entered into an "AP-4" agreement. The Government constructed about $150,000 worth of Improvements; the City agreed to operate the aIrport during the useful life of the improvements. This agreement expired in 1964; In 1969 the FAA declared all AP-4 agreements inoperatIve. The CIty also entered in to a separate grant agreement with the UnIted States, wh1ch expIred in 1964. 5. In 1946, the UnIted States ~ssued a "right of re-entry, " permittIng the aIrport to be open for publIC use. 6. In 1948, the UnIted States executed an "Instrument of Transfer, " transferrIng its leasehold interest In the airport to the CIty wIth the restrictIon that the Interest would revert back to the united States if the CIty dId not maintain the airport for 5 -------- -------- . . the use of the public during the useful life of the improvements. Since the Government never had mare than a leasehold 1nterest in the property, and Slnce this interest was just1fied solely by the war emergency, the Instrument of Transfer should not constitute a barrier to alternative development of the property by the City. C. POST-WAR EXPANSION. 1. After World War II. res1dential development surround1ng the airport 1ntensified, and the neighborhood became more "suburban" in character. The Douglas Company cont1nued to manufacture aircraft at the slte. 2. Econom1sts generally predicted heavy use by businesses of prlvate aircraft for ord1nary bus1ness travel. The a1rport was further improved pursuant to federal grant agreements. Long-term leases w1th fixed-base a1rport operators were entered into by the City. 3. The trend toward "suburbanization" resulted 1n the closure of numerous airports in formerly rural areas. At the same time, general aviation traffic 1ncreased, and Santa Monica became one of the bUS1est airports 1n the country. 4. In 1957, the City adopted a Master plan, Wh1Ch contemplated a Master Plan fOr the airport. In 1959. the Pere1ra-Luckman Company prepared an A1rport Master Plan, which featured a large term1nal bU1ldlng. The plan was approved by the City council, but has never been lmplemented. 6 e . D. AVIATION DEVELOPMENT AND JET NOISE. l. The use of the airport continued to grow in the 1960's. While business flying was less than expected. probably because of the development of the BoeIng 707 and other commercial passenger planes, recreatIonal flYIng grew steadIly. 2. In the mId-1960's, the CIty entered lnto leases wIth Woody Duke ( Cloverleaf AviatIon) and Gunnell AVIation for fixed-base operatIons. The Cloverleaf lease expIres In 1996; the Gunnell lease expired in 1979, and has been continued on a month-to-month basis. 3. In 1968, the Federal Government constructed a new control tower, pursuant to a grant agreement. The agreement contains an assurance by the CIty that the aIrport will be open to the public, without dIscrIminatlon and on reasonable terms. The grant assurances are of no effect after 1988. 4. The CIty also leased to the Government the land on which the tower SItS. This lease IS renewable untIl 2015. 5. The 1960's not only saw a steady rIse in traffic at the airport. but a dramatIc increase in aIrport noise. The ch ief source of complaint was the LearJet, an early model of business jet WhICh emitted a high. piercing whIne and caused nOIse upwards of 110 decIbels. ResIdents of neIghborhoods underlying the flight path flIed suit agaInst the CIty, alleging that the noise had "taken" thelr property and constituted a nuisance. 6. The California Supreme Court held that persons affected by nOIse from aIrcraft using municipal aIrports have a rIght to sue for damages. Actual damage to Santa Monica neighbors was 7 . . never established. because the sU1t was dismissed after the City promised to ban jets and otherwise regulate a1rport noise. 7. In 1966, Bolt, Beranek, & Newman, acoust1cal consultants, conducted a noise study of the a1rport and des1gned a nOlse mon1toring system, which ult1mately was placed in operation at the airport. 8. As the community controversy grew, the FAA. claim1ng that 1 t had the sole r1ght to regulate the noise of aircraft 1n fllght and that the C1ty was obl1gated to operate the aIrport for the benefit of the public, warned the CIty aga1nst nOIse regulation and attempted closure. E. NOISE REGULATION AND THE LOSS OF DOUGLAS. 1. In 1974, the Douglas Company's lease with the CIty expired. and it beg a n to leave Santa Monica and shift its operations elsewhere. 2. About 1978. the land located north of the aIrport (part Douglas. part City) was developed by the Barclay-Curc1 Company as a buslness park, devoted primarIly to office use. 3. In 1975, the C1ty adopted the NOIse Element of its General Plan. ThIS Element found the maJor noise problem in the City to be that assoclated w1th the freeway and other hIghway trafflc. The nOIse problem at the aIrport was given scant reference. 4. Between 1975 and 1977. the City developed a comprehens 1ve set of noise regulat1ons. The maJor regulatIons were: 8 -- ------ . . a. A total ban on jet aircraft. b. A curfew on night departures. c. A ban on pattern flIght trainIng (touch & go's) on weekends. d. A ban on hellcopter tralnIng. e. A lImIt on the noise of a single aIrcraft flyover of 100 SENEL (Single Event Noise Exposure LlmItation). 5. The local airport assocIatlon. later joined by nat10nal aVIatIon lnterests, filed sUIt in federal court to enJoIn the enforcement of the City's regulatIons. Plaintiffs contended the CIty'S right to regulate was preempted by the authority of the FAA over natIonal airspace, that the regulations interfered wlth Interstate commerce, and that the Jet ban was not rationally related to nOIse control. 6. In August, 1979, United States DistrIct Judge IrvIng Hill upheld all the City's laws against federal preemptlon claims. He also ruled that none of the laws, except the Jet ban. Impermlsslbly Interfered wIth interstate commerce. Judge Hill struck down the jet ban on the additional grounds that some newer models of "qulet jets" made less nOIse than some propellor alrcraft, and therefore the Jet ban lacked a rational basIs. 7. In September, 1979, the City Council lowered the SENEL Ilml t from 100 to 8 5 . This ordinance was attacked by Gunnell and the natIonal aVIatIon interests on grounds that it burdened interstate commerce, that it was a "dIsguised Jet ban", and that no EIR was prepared. Judge HIll Issued a preliminary injunctlon agaInst enforcement of the ordinance; the case is awaiting tr 1 al . 9 --------- ---------- . . 8. Since the 100 SENEL lImit was repealed when the 85 SENEL was adopted, there IS no nOIse l1mi t ln force at the aIrport. Regula tlons ImplementIng the CIty'S nOIse ordinance were prepared and presented to the AIrport CommISSIon; they have yet to be adopted pend1.ng further developments in the litigatIon. These regulat1.ons provide for exclUSIon of nOlsy types of aircraft, and establish a formula for estImating aircraft noise under certain condItions. F. THE CURRENT CONTROVERSY. 1. In 1978, the voters of the State passed proposItion 13, which drastIcally reduced the abil i ty of the CI ty to raise tax revenue. In 1979. the voters enacted the Gann InitIative, WhICh liml ts the amount of tax money WhlCh can be spent by cities. 2. In 1980, the WIlllams-Kuebelbeck Company prepared a report which showed revenue estImates from aviatIon and mIxed development at the airport. The report fo und the revenue from mixed commercIal, industr 1.al, park and residentlal use to be several million dollars greater than that which could be realIzed from developIng the property as a general aVIation airport. 3. In February, 1981. the CIty CounCIl notIfied all tenants WIth month-to-month tenancies to vacate the airport by February, 1982. 4. The City CounCIl d1.rected staff to prepare a request for proposals for development of about 20 acres of vacant CIty-owned land located to the north of the runway and west of the bUSIness pa r k. The RFP's have not been soliCIted, in llght of the current 10 ---------------- -------- . . City Council policy to consider the airport property as a whole before authorlzlng extensive development of any parcel. 5. The CIty also refused to approve the transfer of Woody Duke's stock In Cloverleaf AVIation to CalIfornia Aviation. Cloverleaf has filed sUIt; negotIatIons are In progress. 6. The CIty has also commenced an actIon agalnst WIngs Wes t, a month-to-month lessee WhICh vacated the aIrport oWIng back rent. Wings West had prev~ously been denied permIssion to operate a commuter aIrline between Santa Monica and Mammoth. (ThIS Issue IS also raIsed by Gunnell in its suit; Gunnell was denIed permission to operate a commuter service to and from Mex ico.) 7. The ope ratIng perml t of another tenant, Br iles Eellcopter, was recently revoked for faIlure to comply with FAA safety regulations. The FAA has revoked BrIles' maIntenance and operatlng pe rm its, pendIng a hearIng. Br lIes has been given a thIrty day notice to qU1t the property, WhICh is July 15, 198!. 8. On April 22, 1981, the newly elected Ci ty Council imposed a moratorIum on commercIal and resldential development in the City, pendIng a complete reVIew of the City's planning and zonIng laws. Among the reasons underlYIng the moratorium are flndlngs of a serious hous lng sho r tage . a loss of industr Ial base, and commercIal development that 1nadequately addresses overall commun1ty needs. In th1s light, the Counc1l directed the City Attorney to prepare thIS report. 9. On Apr i1 23, 1981, the united States Court of Appeals upheld Judge Hill's rulIng 1 naIl respects. The Court held that 11 -------- . . . the C~ ty had the r~ght to liIut serv~ce at the airport ~n order to protect ltS environment and avo~d l~ab~l~ty for damage to persons affected by airport noise. III. LEGAL CONSTRAINTS. The airport ~s part of the FAA's Nat~onal Av~at~on System Plan. It ~s designated as a general aviation reliever a~rport. and provides serv~ces and fac~l~t~es for a var~ety of aVlation uses. Development of the property for non-aviat~on uses is constra~ned by various laws and contractual obligatlons. A. FEDERAL LAWS AND POLICIES. 1. The Unlted States, through the FAA, has consistently mainta~ned that the C~ty ~s prohiblted from clos~ng the airport. It regards the airport as a vital part of the Nat~onal Aviat~on System plan. and a key rel~ever alrport wlthin the network of smaller a~rports d1verting general aviat10n trafflc from Los Angeles International A1rport (LAX) . FAA offlCials have sent several letters to thlS effect to the City over the past 10 years, the most recent being a letter from the FAA'S Reg10nal Counsel in February. 1981. 2. There are no statutes or regulations proh~bit1ng the closure of an airport by 1tS proprietor. The fact that an alrport 1S part of the National AVlat10n System plan does not prevent its closure. The FAA's pos1tlon 1S predicated on the "sponsor's assurances" glven by the Clty ln acceptlng grants for airport lmprovement, and on leases between the Clty and the United States in which the Clty leased a portion of the airport in exchange for 12 ----- . . the constructlon of various improvements, including the FAA-operated control tower. 3. The Alrport and A~rway Development Act of 1970, 49 U.S.C. S 1718, and its predecessor, the Federal Alrport Act of 1946, requlres an alrport operator who recelves federal funds to aSSure the FAA that the a~rport "will be available for public use on falr and reasonable terms and wlthout unJust dlscrlm1nation." This assurance is embodled in the outstandlng grant agreements be tween the united States and the Clty~ lt IS effectlve during the life of the lmprovements or until July 23, 1988 (20 years from the executlon of the latest grant agreement). While no court has decided the preclse questlon whether an attempted airport closure may be enJolned for fallure to make the alrport avallable for publ1c use. courts have enforced the "unjust dlscriminatlon" clause of the statute agalnst airport owners. 4. On March 31, 1965. the City leased part of the land on which the auport IS located to the FAA for the operatlon of an alr traffic control tower. The lease 1S renewable by the FAA for successive one-year periods beglnning July 1, 1965 and terminat1ng June 30. 2015. Thus far the lease has been renewed annually. The FAA has constructed an air traff1c control tower on the leased land, at a cost of $386,931, and has operated the tower at federal expense. 5. The lease agreement does not spec1flcally prov1de that the C1ty will operate an airport dur ing the ent1re lease term. However, the lease does provide that 1n consideration for the FAA's operatlon of the to we r , the Ci ty will lease land on wh ich 13 -------- -- ---------- ----------- - - ------ . . the tower 1S located, w1II provide necessary access and r ights- of-way, and w1Il provide operat1onal control of lightlng deemed necessary by the FAA. The Clty lS also responsIble for the contlnued functlonlng of all equlpment wh ich the FAA deems necessary for a1r trafflc control, to avo Id impairing the FAA's ability to control a1r traffic, and to hold the FAA harmless for the operation of the tower. A r1der incorporated in the lease recites that the C1ty will agree that the tower will be operated 1n accordance with certain cond1t1ons 1n cons1derat10n of "the operat1on of an a1r traff1c control tower at the Santa Mon1ca Airport by the Un1ted States Government. 11 . . . 6. The FAA has never stated the extent of service necessary to dlscharge the C1ty'S obligatIons under the grants and leases, al though 1t has been requested to do so on several occasions. There are no statutes. reg ula tions, or cases govern1ng thIS pOlnt. The FAA has told thlS office that "customary serv1ces" must be prov1ded. At a minimum, the C1ty must maIntaIn serv1ces necessary to enable aircraft using the a1rport to enter and leave safel y, 1ncludlng fuel and malntenance facllIt1es, but is under nO Obligation to permit fllght schools, a1rcraft sales, and other aviatIon bUSInesses WhICh might make the property "commerc1ally viable" as an airport. 7. The Un1ted States Court of Appeals dec1sion In Santa Mon1ca A1rport Association v. C1ty of Santa Mon1ca holds that the C1ty may determine the level of service at 1tS airport which 1t reasonably deems necessary to protect the environment and avoid !lab1l1ty for aIrport nOlse exposure, so long as it acts 1n a 14 -------- --- ----------- -~- - ------- . . non-dIscrimInatory manner and does not dIrectly burden Interstate commerce. The point at wh IC h nOIse regulatIons impermIssIbly burden commerce, ln the context of the CIty'S reductlon of the SENEL from lOa to 85. is at issue In NatIonal Buslness Aircraft Association v. Clty of Santa Monica, now pend ing In United States DIstr lCt Court. 8. Federal AviatIon RegulatIons Part 77 lImits the heIght of cons tr uctlon adjoIn lng aIrports. The City must notify the FAA of any proposed constructIon wlthln 10.000 feet of the runway. The FAA will then determIne If the proposed constructIon would constl tute a hazard to air traffIc, based on a formula contaIned in the regulatIons. The closer to the runway, the lower the heIght lImIt. 9. The FAA has no noise standards for munlcipa1 airports. It does provide, as a condltIon of future alrport development or nOIse abatement grants, that a CIty must submit a nOIse exposure map for the approval of the FAA. ThIS map contaIns noise exposure contours for areas adjacent to the a~rport, based on 24-hour average nOIse exposure levels rated by a system called "Ldn". The FAA also provIdes grants for "AIrport NOIse Control and Land Use Campa tibil i ty" (ANCLUC) studIes, WhICh lead to the preparation of nOIse exposure maps and the recommendatIon of nOIse abatement measures. 15 - - ---- --- ----- -- ------- ---------- . . B. STATE LAWS AND POLICIES. 1. The State of CalIfornIa has granted the CIty a permit to operate the AIrport. The grantIng of thIS permit does not preclude the abandonment of the aIrport. However, the State Attorney General issued an Opinion in 1975 that the CIty could not, because of the federal grants and leases, unIlaterally close the aIrport. 2. The State imposes nOIse limitatIons on aIrports. Areas underlYIng an aIrport flIght path must have a "Community NOIse EquIvalence Level" (CNEL) ratIng of 70~ this level must be red uced to 65 by January l, 1986. CNEL is a 24-hour average ratIng of nOlse exposure~ nIght-tIme noise events are weighted at 10 times the level of day-time events. The area underlYIng the Santa Monica flight path had a CNEL ratIng of approxlmately 65 when the jet ban and 100 SENEL were in effect. 3. Public UtIlItIes Code Sectlon 21659 prohibits the constructIon of a structure or the growth of natural growth WIthin one mile of the boundary of any airport which constitutes a hazard to navigatIon as defIned in Federal Aviatlon Regulations Part 77. 4. The CalIfornIa Env~ronmental Quality Act requires that an Environmental Impact Report be prepared fOr projects of local government wh ich may have a SIgnIficant impact on the environment. ThIS would Include a sIgnIfIcant change ln aIrport operatIons, planning and zonIng changes, and maJor development activitIes at the aIrport. 16 . . 5. The State Plann1ng Law requires all cities to have a general plan containing several mandatory elements. The City is 1n the process of rev1s1ng 1ts general plan and, 1n particular, its hous Ing element. The State PlannIng Law perm1ts cItIes to approve specif1c plans for particular sites. Specific plans must be cons1stent w1th the general plan, and must provlde for the systemat1c 1mplementat1on of general plan elements Includ1ng regulations, cond 1 t1ons, programs. and proposed legislation regard1ng: locat1on and regulat10n of bUlld1ngs and land uses. locat1on and standards for transportatIon facIl1ties, standards for populat1on density and provls1ons for water supply and waste dIsposal, and provisions for open-space. Implementation of a specif1c plan for the airport property would, 1n addit1on, require re-evaluat1on of the CIty'S nOIse element. C. CITY LAWS AND CONTRACTS. 1. The City has title to 215 acres of a1rport property. The deeds to the various parcels are unrestricted. However. a port1on of the property was acqu1red w1th bond revenue author1zed in the 1926 election. which permitted acquisit10n and improvement of the land for "publIC park purposes". Further, a lease by the CIty to Cloverleaf AVlatlon contalns a promise by the City to operate a general aviat10n aIrport until 1996. Several other parcels of airport property are occup1ed by tenants w1th leases for specIfIC terms or month-to-month tenanC1es. The elect10n Wh1Ch author1zed the issuance of bonds for the acquisition of the aIrport property states that the bond proceeds are to be used for the acquIsItlon and improvement of a Rpubl1C 17 --- -------~---- - -------- ---------------- . . park." The bonds were retired in 1965. The deed to the Clover FIeld property is unrestr 1cted. Nonetheless, it 1S a general prInc1ple of municipal law that land acquIred pursuant to a vote of the people may not be used for a purpose other than that spec i f i ed in the ballot measure wIthout a Slm11ar vote. If this principle were appl1ed to the aIrport property, the land acqUIred wIth bond proceeds could not be used for purposes other than park purposes without a vote. However, there IS authority indIcatIng that a vote authorizIng acqulsltlon of property through bonded indebtedness. but not specifically dedIcatIng particular land to particular uses. does not irrevocably fix the uses to which such land may be put. 2. The AIrport property 1S currently zoned M-2 (industr lal) . ThIS zonIng excludes residentIal uses. Therefore, to devote a portion of aIrport property to resIdential use would require a zonlng change. 3. As wlll be indicated In the followlng sect10n of this report, the primary planning alternative for the airport property is the preparatlon of a speCIfIC plan under Government Code SectIon 65450. In the course of preparIng such a plan. the necessity of revisIng several elements of the General Plan, such as the NOIse Element and the Transportation Element, may become apparent. 4. In addl tlon to the leases w1th the Federal Government for tower and runway Improvements. the City has leases covering most of the parcels of aIrport property. The locations of these parcels are shown on the attached lease map. 18 ---------- . . . 5. The City has given notice to all month-to-month tenants to vacate the property no later than March 30, 1982. These ~nclude: a. Lear-siegler (parlnng lot). b. All tenants at the Airport Admlnistration Bu~lding except the FAA distr~ct offlce. c. Kettler Av~ation (FBO). d. Gunnell Aviation (FBO) . e. Bell A~r Service (Gunnell) (FBO) . f. Wings West (FBO). g. Pacific Airmotive (FBO) . h. Br ~les Wlng & Hel~copter (FSO) . 6. The fo1low~ng leases will expire before June 30, 1982: a. Douglas Museum (ground lease) ; explres July 31. 198!. b. Krueger Av~at~on (FBO) ; explres November 14. 1981. c. Woody Duke Building ( FBO) ; explres February 28. 1982. d. Oas~s Petroleum (fueling area); explres March 31, 1982. e. Bl-Phase Energy (ground lease); expires December 31, 198!. f. FAA D~strict Offlce; exp~res June 30, 1982. 7. Lear-Slegler has ground leases on two parcels of property to the south of the runway. These expire on November 30, 1983 and June 30, 1991. 8. Cloverleaf Aviation, which lS 60% owned by Woody Duke and 40% owned by Cal~forn~a Aviation (Bob Carangl), has a lease for a fixed base operation south of the runway whlch expires on March 1, 1996. ThlS lease contalns a promlse by the Cl ty to 19 ------ ----- - ------------ - . operate a general aviatIon a~rport. The CIty and Cloverleaf are In lItigatIon over the CIty'S refusal to appr ove the transfer of the remaInIng Cloverleaf stock from Duke to Carangi and over the alleged faIlure of the CIty to develop the airport property. 9. Gunnell. wings West, and Cloverleaf have on occasion expressed an Intention to operate a commuter airline from the aIrport. The City has refused to allow such service wIthout an operations pe rm i t and a special contract. (See Santa MonIca MuniClpal Code Se c t io ns 10102 and 10138.) The ab1l1ty of the City to prohIbIt or regulate scheduled serVIce IS an issue In the Gunnell litigation. 10. In addi tion to the lItigatIon wIth Cloverleaf and Gunnell AVIatIon (a plaIntiff In AIrport II) , the CIty IS suing Wings tvest (unlawful detaIner SUlt for back rent). Further, the CIty has not~fied BrIles HelIcopter that Its operat~ng perm~t ~s revoked for violation of FAA safety regulatIons, and that it must leave the aIrport on July 15, 1981. II. As was previously stated, the right of the Clty to regulate nOIse at Its a~rport and to enact Its curfew, pattern tr alnlng limltat~on. helIcopter traInIng ban, and nOIse lImit, were upheld. However. In adopting the 85 SENEL ordInance, the Ci ty Council repealed the 100 SENEL lImit. SInce the 85 SENEL has been prelImInarIly enJoined In NBAA v. CIty, there is no current noise limit at the airport. In recent weeks, several old-model Learjets have used the airport, to the cons1derable annoyance of the surround~ng communIty. These planes emit noises cons1derably In excess of 100 dB, and should be excluded. 20 - . IV. ALTERNATIVES. In light of the evidence that revenue from mIxed commercIal, residential, and park use at the airport property would far exceed that WhlCh could be real~zed from aviation uses, the s tr ong communIty concern over aV1atlon nOlse and safety. and the diminished utillty of the airport as an lndustrlal base SInce the departure of the Douglas Company, lnterest has been expressed in closing the airport as soon as possible and that the land be devoted to its hlghest and best uses. However. because of the federal grants and leases and the long-term lease wlth Cloverleaf Aviation, this cannot be accompllshed without lengthy IItigatlon or the consent of the other partIes. Therefore, It IS the opinIon of this office that the best way to accomplish the Clty CouncIl's goals IS to prepare a speclflc plan for the alrport property wh~ch conslders both long-term and interim uses. Thus. aVIat10n operations should be concentrated in as small an area as feasIble, and regulated to aba te nOIse and undesirable types of traffIc, wh~le producIng a contlnuous revenue stream dur ing the time when the alrport remains open. Interim non-aviation uses should be planned and developed to produce revenue and be compatlble with the ultimate use of the slte. The eXlstence of the 5000 foot runway. and the necessity to lImIt the helght of development adJacent to the runway, severely lImIt the abllIty of the City to develop the property. Whlle the runway eXIsts and the airport remaIns ln operation, non-avIatIon development would be lim 1 ted to parcels on the North or South 21 ---------------------- - - - - - -- - - ------------ - - - - - - - ----- - ---- ---- r . . side of the runway, consistent with federal bUIlding regulations. Further, some base of aVIation operations must be maIntained in order to provide serVIce for those aircraft perm1tted to use and to be based at the airport. Such facil i ties Include a fuelIng station, maintenance facillt~es, and some space for aircraft parklng. It IS the opinion of this office that the CIty'S oblIgatIons to malntaln an aIrport whIle developing the maXlmum revenue and community beneflt potential may most effect~vely be discharged by concentratIng aVIatIon activities on one sIde of the runway and developing the other side accordlng to a specific plan for the property. It appears that the North sIde of the runway is better sui ted for such aVlation operations. This would requIre negotlating with California Aviation for a transfer of Its leasehold from the South to the North sIde. Thus, when the remain1ng tenants on the south sIde are removed, that portlon of the aIrport property could be developed. A specIfIc plan for the property could be drafted. ln the following development phases: 1. Establlshment of a base of aviation operatIons on the North side of the runway. This would be accompanied by establIshment of llmltat~ons on particular types of aviation actIvIties determIned to be incompatlble with the community (e.g. flight schools, nIght and weekend operations, use by noisy types of aIrcraft). 2. Development of the property on the South side of the runway for non-avIation activitIes, such as commercial, park and residential uses. 22 ---------- . . . 3. Development of the rema1n1ng property on the North slde of the runway for non-aviation act1vlt1es. 4. Development of the entlre a1rport property, Including that currently occup1ed by the runway and tax Iway. The alternatIves to phased development accord1ng to a comprehensive. spec1fIc plan do not appear to be as pract1cal. An attempt to effect Immed1ate closure of the a1rport would not present a h1gh probab1llty of success, 1n light of the outstandIng contractual comm1tments and the stance of the federal government. Development of 1solated parcels of property w1thout a comprehens1ve. long-range plann1ng process would be contrary to sound planning pract1ce, and perhaps detrimental to the long-term revenue and communlty benefit goals of the C1ty. L1m1tation of aVIatlon actIvi tIes wi thout any planned development, does not appear to promote the ultimate devotion of the property to its highest and best use to any extent. V. RECOMMENDATIONS. It 1S respectfully recommended that the City Council: l. Adopt the accompanYIng resolut1on, which states the Clty'S po li c Y to effect closure of the a1rport as soon as possible and which Init1ates the preparatIon of the phased development of the a1rport property to 1tS hIghest and best uses, according to a spec1fic plan prepared ~n accordance wIth Government Code Sect10n 65450 et seg. The process should 1nclude partIcipatIon by all lnterested segments of the community, lncluding aIrport neighbors. aviation ~nterests, commercial and residentIal developers, and the FAA. 23 ------------- f . . 2. Dicect the City Attocney to entec into negotiations with Callfocnla AVlation foe settlement of pendlng 1i tlgation and transfer of ltS base of opecatlons to a paccel on the North slde of the cunway. 3. Direct the Clty Attocney to prepare noise cegulatlons and othec llmitations on aviation activltles incompatible wlth the pcotectlon of the enviconment, for submlssion to the Alrport CommlSSlon and Clty Councll. PREPARED BY: Robert M. Myecs, Clty Attocney Stephen Shane Stack, Assistan t City Attorney 24 . . . . CA:RMM:SSS CIty CouncIl Meeting 6/23/81 ResolutIon No. 6296 (City Council SerleS) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING POLICY CONCERNING THE USE OF THE SANTA MONICA AIRPORT AND DIRECTING THE PREPARATION OF A SPECIFIC PLAN FOR THE PHASED DEVELOPMENT OF THE PROPERTY. WHEREAS, the property on which the Santa Monica AIrport is located is presently used prlmarlly for general aVIatIon purposes; and WHEREAS, the continued use of the property for a1rport purposes causes adverse environmental lmpacts on and a danger to the reSIdential neIghborhoods surrounding the alrport; and WHEREAS, the contlnued use of the property for auport purposes benefits only a small number of persons, and produces far less revenue and other communi ty benefits than would development of the property to other uses; and WHEREAS, the City Council has found that there 1S a need to address a serious shortage of affordable housing ln the City. to regulate commerc1al development in lIght of overall communIty needs, and to attract Industry to the community; and WHEREAS, the 215 acres of airport property provlde a unlque opportun~ty for development that will be beneficlal to the overall needs of the community; and WHEREAS. development of the airport property should be comprehensIvely planned in a manner that WIll involve all . , . . interested segments of the community and wlll account for both long-term needs and the interim use of the property as an airport1 and WHEREAS, Government Code Section 65450 et seg. authorlzes the City to adopt a speciflc plan for a part of the Clty, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE: Section 1. It is the policy of the City of Santa Monica to effect the closure of the Santa Monica Munlcipal Airport as soon as possible and to devote the property on WhlCh it is located to its highest and best use, conslstent with the needs of the C~ty for a continuous base of revenue, for provision of opportunitles for affordable hous lng, for parks and open space, and for an env ironment consistent with the City's generally resldential character. Sectlon 2. It is the policy of the City of Santa Monica to ho no r its contractual commitments. and in recognition of the outstanding commitments of the C1ty to maintain a general aviation airport, the Clty Council intends to plan both for the long-term development of the airport property and for the lnterlm operation of an airport consistent w1th the maximum promotion of the City's ultimate goals. Section 3. The City Manager, the Clty Attorney and the Planning Director are d1rected to prepare, for submlsslon to the Planning Commission , a Specific Plan for the development of the property on WhlCh the Santa Monica Municlpal Airport is located, - . . . . in accordance with the provisions of Government Code Section 65450, et seq. Section 4. All interested parts of the community, lncludlng residents of surrounding neighborhoods, aviation lnterests, and developers of residential, commercial, and industrial property, shall be involved in the preparation of the Speclflc Plan. Section 5. The views of the Federal Government, part~cularly the Federal Aviation Administration, and of the State of California, shall be sol1cited in connectlon with the preparation of the Specific Plan. Section 6. The planning and development of the property shall proceed in phases, as follows: I. The establishment of long-term goals for the use of the entire property. II . The establishment of a base of airport operations on the North side of the runway, for such period as the Clty is legally reqUired to operate an airport. ThlS base shall be concentrated in as small an area as possible, and shall prOVide services necessary to permlt safe aVlatlon operations during the time the airport is operated as such. Reg ula tlons for the exclusion of noisy aircraft and the elimlnation of unsafe and undesirable types of aVlatlon activ~tles shall be developed. The Airport Comm1ss1on shall hold a hearing on thiS phase prlor to its submiss ion to the Planning Commission. III. The development of the property on the South side of the runway for mixed uses compatlble wlth the long-term goals, lncluding but not hmi ted to commercial, hght industr 1al, . .- . . residential, and open space. P~iority for resldential development shall be given to housing affo rdable by persons of low and moderate income. -;V. The development of the property adjacent to the base of aviation operations for mixed uses compatible with aviation uses and with the long-term goals. v. The closure of the airport and the development of the entire property consistent with the long-term goals. Section 7. The City Attorney is directed to enter into negotiatlons with Cloverleaf Aviation and California AV1ation, and With such other lessees as he deems approprlate, 1n orde~ to ~esolve pending lit1gat1on and effectuate the purposes of th1S Resolution. Section 8. The City Clerk shall attest to the adoption of this resolutlon, and thereafter 1 t shall be in full force and effect. APPROVED AS TO FORM: \) \, \ 1" j..r '"'t-'---- ~ Lw~h\ .L Robert M. Myers .) Ci ty Attorney . .~. - e ADOPTED AND APPROVED THIS 23rd DAY OF June ., , 1981. '-.. ~ . ""_~'~ (~~~_.~J">; ~ ,"-, <""c ~1A YO~ I HEREBY CEHTIFY THAT THE FOREGOInG RESOL~TImL IW. 6296 J HAS DULY ADOPTED BY THE CITY CO~.HJCIL OF THE CITY OF SANTA r10NICA AT A REGULA:< ;\1EETIf:G THEf{EOF HELJ ON . June 23 I 1981 BY THE FOLLOII H1G cau :JCI L VOTE: AYES' COW1CT \ /1EriBI=RS' CQn~, Edi'iards, Jenungs, Press, . ~...... . _I . Reed, Zane and ~laYQr Yannatta Goldi'iay rJOES: COUNC I U~E!1:gERS : None ABSENT: COmK 1 L"~EJ~3ERS: :Jone ABSTAHi: CQU"!CI lJ~E~'DERS: :-lone ATTEST: I " .-- { ~. :, '~. . //'1J /: U /\ ~--<..-- }f,--"'-1.-: ./ / -~/ -~ ._-'.... CITY CLERK