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VNAA Issue Alert - Proposed Van Nuys Airport Deficit Reduction Program

19 Jun 2013 4:20 PM | Debi Carpenter (Administrator)
Dear VNAA Members and Supporters:
The Van Nuys Airport Association has repeatedly expressed, both verball and in writing, our opposition to Los Angeles World Airport's proposed deficit recovery program (DRP) at Van Nuys Airport (VNY). The main purpose of the DRP is to assess leaseholders and tenants for any operational funding deficits that occur at VNY, for which they have no oversight or control. There are at least four versions of the DRP that appear in tenant lease agreements, most of which place operating deficits in any individual VNY budget category on the backs of airport tenants through annual assessments. The DRP contains no mechanism for airport tenants and users to object to, negotiate or opt-out of these provisions. Nor does it provide VNY tenants or users direct oversight of the airport's operating budget or the ability to enact spending reductions.

We believe that the DRP 1) places an unfair and severe financial burden on VNY tenants, 2) poses severe negative impacts on the overall economic health of the airport and 3) is discriminatory and violates Federal Aviation Administration (FAA) policy and gran assurances.

The VNAA, on behalf of the VNY tenants, has engaged a leading aviation law firm to outline our concerns to the Los Angeles city attorney in the hope of preventing implementation of the DRP. Attached  for your information is a summary of the correspondence sent on VNAA's behalf by Leonard D. Kirsch, Esq. of McBreen & Kopko to Raymond llgunas, Esq. of the Los Angeles City Attorney's office on May 30, 2013. Summary of the Objections to DRP (memo form) (1).pdf

We will continue to educate the community on the challenges created by the DRP, and it is our hope that we can meet with LAWA officials and counsel to resolve this matter to everyone's benefit. We will continue to keep you updated on our progress regarding this important issue affecting the jobs and businesses at VNY.

Sincerely,
Curt Castagna
VNAA President

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