At the City Council meeting of May 6, 2003, Council member Jef VanderBorght asked that the recent letter from the Federal Aviation Administration (FAA) to Airport Authority President, Chris Holden, be placed on the Council�s agenda for discussion.  In light of the short time limits included in the letter, the normal Council process for bringing a matter before the Council for discussion would be ineffective.  As a result we have brought the matter back immediately.

On April 21, 2003, the Airport Authority President, Chris Holden, sent a letter to the FAA asking that the Airport be relieved of the requirement to return the funds that had been provided to the Airport for the purchase of the B6 site for use as a future terminal.  Mr. Holden indicated that although current circumstances in the airline industry would delay the possibility of a new terminal for some time, the future looked brighter for the possible construction of a terminal.

On May 2, 2003, new FAA Administrator, Marion C. Blakey, responded to Mr. Holden�s letter.  Her response rejects the request made by Mr. Holden and requires that the Airport provide a plan for refund of the money within thirty (30) days. 

Both of these letters are attached for your review.  We will hope to provide you under separate cover a brief analysis of the Long Beach Airport decision by the FAA prepared by Mr. Peter Kirsch, our outside legal counsel on airport matters.

It is recommended that the City Council discuss these issues and provide direction to staff as is appropriate.

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