Historical Background (DRAFT)
The City of Santa Monica owns the land occupied by the Santa Monica Airport after purchasing most of the land with a Park Bond in 1926 (link). In 1941, during World War 2, the City leased the land to the U.S. Federal Government in two parts (the Runway Lease and the Golf Course Lease) to support the war effort. During the war, the Airport land was expanded to include the land known as the Western Parcel. Like all the Airport land parcels, the Western Parcel is owned by the City of Santa Monica.
In 1948, after the war, the Federal Government transferred title to the improvements on the land (buildings, vehicles, and equipment) and surrendered its 2 leases (the Runway Lease and Golf Course Lease) for the eastern portion of the Airport using a standard form Instrument of Transfer ("IoT"). The Instrument of Transfer declared that the Federal Government no longer needed the land, surrendered it to the City, and also transferred various assets, including buildings, vehicles, and equipment. The Instrument of Transfer document included a "reversion" clause. It stated that rights transferred by the Instrument could only be used for Airport purposes and would otherwise revert back to the Federal Government. The Instrument of Transfer did not cover the Western Parcel, which was not part of the original war-time leases.
After the war, the City accepted a series of Federal Grants to fund Airport improvements. In exchange for each grant, the City was obligated to maintain the Airport facilities for 20 years. The last Federal Grant was offered and accepted in 1994. That grant was later amended in 2003 by 14.993% or $240,600 (less then the 15% adjustment cap allowed) to reflect the actual project costs for the Airport improvements.
In the late 2000's, the Federal Government claimed that the Instrument of Transfer obligated the City to use the land as an airport forever. And, if the City attempts to change its use, the title to the land (not just the leasehold rights) would "revert" to the Federal Government. Aviation interests also claim the City's Federal Grant obligation to continue operating the Airport did not expire until 2023 - twenty years after the City accepted the 2003 payment adjustment of 14.993% on the 1994 grant. The City vigorously opposed both of these claims, since (a) the rights surrendered under the IoT was a leasehold that expired in the 1950's, and (b) grant obligations run no longer than "20 years from the date of execution of the grant agreement."
In 2013, the City filed a federal law suit against the FAA to establish its right to control the future use of its land occupied by the Airport. In that litigation, the City argued that the Instrument of Transfer could not possibly have given the Federal Government a right to control the land forever or to take title to the land, because the Federal Government was merely a tenant with a leasehold, never owned the land, and only had the 2 leases on the land during the war period. On May 16, 2016, the 9th Circuit Court of Appeals decided in favor of Santa Monica and remanded the case to U.S. District Court.
By 2015, the City and residents had already begun to transform excess parts of the land and facilities into parks and community spaces dedicated to public recreation, cultural, arts, and educational uses. Clover Park, Airport Park, and Santa Monica Art Studios are examples. However, as 2015 approached aviation industry lobbyists, partnered with real estate development interest, have had a different vision for an airport city serving private aviation with high density commercial and industrial uses.
Around the same time, Aviation interests filed an administrative complaint with the FAA seeking a ruling that the federal grant obligations do not expire until 2023. In that litigation, the City argued that the adjustment payment made in 2003, was not a separate new grant and it did not restart the City's 20 year obligation. As of January 2017, the matter was being appealed in Federal Court.
The City and residents had already begun to transform excess parts of the land and facilities into parks and community spaces dedicated to public recreation, cultural, arts, and educational uses. Clover Park, Airport Park, and Santa Monica Art Studios are examples. However, as 2015 approached aviation industry lobbyists, partnered with real estate development interest, have had a different vision for an airport city serving private aviation with high density commercial and industrial uses.
In January 2017, the FAA and the City of Santa Monica reached a settlement to end some of the litigation over the future of the Santa Monica Airport land. The monumental Consent Decree agreement allowed the City to shorten the airport runway to 3,500 feet in January 2018, and to close the airport to all aeronautical use at midnight on December 31, 2028.
In January 2017, the City and the Federal Government settled their dispute and signed a Consent Decree for the closure of Santa Monica Airport which was approved by the U.S. District Court. The City then passed a City Council Resolution No. 11026 (CCS) implementing the Consent Decree and authorizing (a) all actions necessary to ensure the closure of Santa Monica Airport effective as of midnight on December 31, 2028, and (b) the shortening of the Santa Monica Airport runway to 3500 feet in length prior to the closure.
In 1948, after the war, the Federal Government transferred title to the improvements on the land (buildings, vehicles, and equipment) and surrendered its 2 leases (the Runway Lease and Golf Course Lease) for the eastern portion of the Airport using a standard form Instrument of Transfer ("IoT"). The Instrument of Transfer declared that the Federal Government no longer needed the land, surrendered it to the City, and also transferred various assets, including buildings, vehicles, and equipment. The Instrument of Transfer document included a "reversion" clause. It stated that rights transferred by the Instrument could only be used for Airport purposes and would otherwise revert back to the Federal Government. The Instrument of Transfer did not cover the Western Parcel, which was not part of the original war-time leases.
After the war, the City accepted a series of Federal Grants to fund Airport improvements. In exchange for each grant, the City was obligated to maintain the Airport facilities for 20 years. The last Federal Grant was offered and accepted in 1994. That grant was later amended in 2003 by 14.993% or $240,600 (less then the 15% adjustment cap allowed) to reflect the actual project costs for the Airport improvements.
In the late 2000's, the Federal Government claimed that the Instrument of Transfer obligated the City to use the land as an airport forever. And, if the City attempts to change its use, the title to the land (not just the leasehold rights) would "revert" to the Federal Government. Aviation interests also claim the City's Federal Grant obligation to continue operating the Airport did not expire until 2023 - twenty years after the City accepted the 2003 payment adjustment of 14.993% on the 1994 grant. The City vigorously opposed both of these claims, since (a) the rights surrendered under the IoT was a leasehold that expired in the 1950's, and (b) grant obligations run no longer than "20 years from the date of execution of the grant agreement."
In 2013, the City filed a federal law suit against the FAA to establish its right to control the future use of its land occupied by the Airport. In that litigation, the City argued that the Instrument of Transfer could not possibly have given the Federal Government a right to control the land forever or to take title to the land, because the Federal Government was merely a tenant with a leasehold, never owned the land, and only had the 2 leases on the land during the war period. On May 16, 2016, the 9th Circuit Court of Appeals decided in favor of Santa Monica and remanded the case to U.S. District Court.
By 2015, the City and residents had already begun to transform excess parts of the land and facilities into parks and community spaces dedicated to public recreation, cultural, arts, and educational uses. Clover Park, Airport Park, and Santa Monica Art Studios are examples. However, as 2015 approached aviation industry lobbyists, partnered with real estate development interest, have had a different vision for an airport city serving private aviation with high density commercial and industrial uses.
Around the same time, Aviation interests filed an administrative complaint with the FAA seeking a ruling that the federal grant obligations do not expire until 2023. In that litigation, the City argued that the adjustment payment made in 2003, was not a separate new grant and it did not restart the City's 20 year obligation. As of January 2017, the matter was being appealed in Federal Court.
The City and residents had already begun to transform excess parts of the land and facilities into parks and community spaces dedicated to public recreation, cultural, arts, and educational uses. Clover Park, Airport Park, and Santa Monica Art Studios are examples. However, as 2015 approached aviation industry lobbyists, partnered with real estate development interest, have had a different vision for an airport city serving private aviation with high density commercial and industrial uses.
In January 2017, the FAA and the City of Santa Monica reached a settlement to end some of the litigation over the future of the Santa Monica Airport land. The monumental Consent Decree agreement allowed the City to shorten the airport runway to 3,500 feet in January 2018, and to close the airport to all aeronautical use at midnight on December 31, 2028.
In January 2017, the City and the Federal Government settled their dispute and signed a Consent Decree for the closure of Santa Monica Airport which was approved by the U.S. District Court. The City then passed a City Council Resolution No. 11026 (CCS) implementing the Consent Decree and authorizing (a) all actions necessary to ensure the closure of Santa Monica Airport effective as of midnight on December 31, 2028, and (b) the shortening of the Santa Monica Airport runway to 3500 feet in length prior to the closure.