Understand Exhibit A foundational info. Definition Update triggers Value to an airport Sponsor Where we ve been & where we re at today

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1 Pulling Together the Exhibit A Presented to: By: Date: 2017 Airports Fall Seminar Gina Mitchell, AICP November 30, 2016 Agenda Understand Exhibit A foundational info Definition Update triggers Value to an airport Sponsor Where we ve been & where we re at today Identify strategies to move ahead Tools to simplify the process & help obtain FAA acceptance Maintaining & acquiring property with good title What should be included in a scope of work 2 1

2 Exhibit A Definition?? Exhibit A Compliance Order history Current (5190.6B) Airport land depicted on property map attached to the Airport Layout Plan (ALP) Previous (5190.6A) The airport property map, also called the Exhibit A to the grant agreement, is a required document to be submitted with the application for a grant & delineates all the property owned or to be acquired by the airport owner. Whether or not the Federal Government participates in the cost of acquiring any or all such land, it relies on this map in any subsequent grant of funds. Any land identified on the Exhibit A may not thereafter be disposed of or used for other than those purposes without FAA consent. 3 Exhibit A Update Triggers Land acquisition Fee airport owns land Easement airport interest in land owned by another Lease airport lease of property owned by another Master plan Compliance related Land Release all grant assurances released to transfer airport property to a private owner Non-aeronautical use of airport property property still owned by the airport, but FAA grant assurance regarding maintaining the aeronautical use is eliminated allowing for a specific non-airport use Concurrent use of airport property primary use continues to be aeronautical, but FAA approval obtained for a specific compatible non-aeronautical use 4 2

3 Value of an Exhibit A Compliance with Grant Assurances (Part 1) Good Title (#4) ensure the Sponsor has good title to the parcels necessary to achieve the purpose of the grant & role of the airport Preserving Rights & Powers (#5) not taking action that may deprive rights & powers to direct & control airport development & comply with grant assurances 5 Value of an Exhibit A Compliance with Grant Assurances (Part 1 continued) Ensure Compatible Land Uses (#21) take appropriate actions to zone & control existing & planned land uses to make them compatible with aircraft operations at the airport Airport Layout Plan (#29) keep an up to date ALP & airport property map (Exhibit A) showing boundaries of the airport, all existing & proposed airport facilities, location of all existing & proposed non-aeronautical use areas 6 3

4 Value of an Exhibit A Sponsor understands their property rights & the rights of others to airport property (Part 2) What is & isn t airport property Who else may have rights to access airport property & what those rights allow Whether an easement gives the Sponsor the right to accomplish what is necessary If airport or non-airport development can proceed in an area on airport property without negative impacts to Another party s legal rights Compliance with grant assurances Sponsor costs 7 Where We ve Been ADO accepted the Sponsor s airport property map from the ALP set (drawing with table) When a land grant was requested, the parcel(s) to be acquired were shown in the application on an 8.5x11 sheet of paper vs. a full revision to the drawing & tables If title opinion info was available identifying encumbrances (i.e. rights others have to airport property), the encumbrances weren t identified on the Exhibit A Result is that the Exhibit A may not be current or show all property interests or accurately reflect required info Interests of the Sponsor Interests of others Land no longer owned by the airport &/or rights given to others to airport property 8 4

5 Where We re at Today Standard Operating Procedure (SOP) relevant content is primarily found in the checklist (Appendix B) 9 Where We re at Today Standard Operating Procedure (SOP) Primary focus primary intent is to identify all land that is designated airport property & to provide an inventory of all parcels that make up the airport Airport property &/or property interests (existing & former) Grant info parcel & grant numbers Secondary focus Airport geometry Encumbrances Other Info Airport Property Info 10 5

6 Where We re at Today Standard Operating Procedure (SOP) SOP seems simple & straightforward until you peel back the onion What does a good one look like? How do I show info so it is clear & easily understood? What is an encumbrance? Answers there isn t a one size fits all answer, but we can make it simpler 11 Simplifying the Process Key is figuring out what s the best way to clearly share the info Useful to the Sponsor Readily available & understandable 12 6

7 Simplifying the Process Commonly Used Terms Layman s Terms Conveyance document used to Transfer the legal title of property from one person to another Granting an encumbrance such as an easement or mortgage Documents are filed in official record books / filing system provided & maintained for such purpose Obtain a copy of all conveyance documents & forward it to FAA with other Exhibit A supporting info Recording location North Dakota & Minnesota County Recorder's Office South Dakota Register of Deeds 13 Simplifying the Process Commonly Used Terms Layman s Terms Interest a right (i.e. an encumbrance) held by someone other than the property owner that allows for the use of the owner's property Examples Access over a neighboring parcel of land Right to access minerals Possibility of acquiring title (i.e. ownership) upon the happening of some event 14 7

8 Simplifying the Process Commonly Used Terms Layman s Terms Recorded encumbrance granted through execution of a document & filing it at the County Recorder's Office / Register of Deeds Examples Easement Lien Mortgage Right to access minerals Accrued & unpaid taxes 15 Simplifying the Process Commonly Used Terms Layman s Terms Unrecorded encumbrance not all encumbrances are filed at the County Recorder's Office / Register of Deeds, but are recognized as or are actual uses (i.e. occupancy) of airport property Provided or documented in writing elsewhere (e.g. city council resolution or minutes) Granted verbally or a paper trail of written documentation cannot be found 16 8

9 Simplifying the Process Commonly Used Terms Layman s Terms Title report tool Sponsor can use to gather information (ownership & encumbrance report - O&E) Often prepared by a title company after review of all of the recorded documents within a defined geographical area Identifies the recorded interests that are held by others within land that the Sponsor Owns Has an easement or lease interest Does not Provide insurance protection Constitute an examination of title Include a field inspection of the property 17 Simplifying the Process Commonly Used Terms Layman s Terms Items to request the O&E include Document & provide information such as ownership, easements, covenants & restrictions, encumbrances, liens & judgments, any unreleased loans If you have ordered one, confirm what you requested includes these items Obtain copies of referenced documents Discuss with ADO whether potential future airport property should be included How far back does the O&E need to go? 1 st search go back to the land patent Subsequent searches begin on the date the O&E was last obtained, if that date can be determined 18 9

10 Simplifying the Process Info to be shared Drawing Tables Backup info & documentation Drawing Tables Backup Info 19 Simplifying the Process Drawing focus needs to be about airport property & property interests Clear & discernable Airport geometry should be visible, but not be a detraction Tables Backup Info Drawing 20 10

11 Simplifying the Process Drawing Boundary Descriptions Airport Parcels 21 Simplifying the Process Drawing Boundary Descriptions 22 11

12 Simplifying the Process Drawing Drawing Encumbrances23 Simplifying the Process Drawing Parcel Key 24 12

13 Simplifying the Process Drawing Parcel Key 25 Simplifying the Process Drawing Clear Airport Geometry 26 13

14 Simplifying the Process Drawing Use Insets as Necessary 27 Simplifying the Process Drawing Use Insets as Necessary 28 14

15 Simplifying the Process Drawing Use of Color to Group Similar Uses 29 Simplifying the Process Drawing Use Notes as Necessary 30 15

16 Simplifying the Process Drawing Takeaways clear & discernable is highest priority Most often more than one page is necessary to convey info clearly Insets helps to share info within a small area or when there are multiple pieces of overlapping info Don t use a color legend for parcels Airport geometry should be subtle Add disclaimers as necessary 31 Simplifying the Process Tables FAA has developed an Excel workbook with instructions & templates Existing Airport Property Released or Sold Airport Property Encumbrances Recorded Unrecorded Proposed Future Airport Property Acquisitions & Easements Excel info includes explanations in layman s terms, not legal definitions Drawing Backup Info Tables 32 16

17 Simplifying the Process Instruction Info - Excel File Part 1 instruction info INSTRUCTIONS Column Number Title Explanation Layman s Terms, NOT Legal Definition Where to Find Content SOP Reference # or Optional Part 2 table templates PROPOSED FUTURE AIRPORT PROPERTY ACQUISITIONS & EASEMENTS Parcel Designation Acreage Purpose of Acquisition Current Owner Type of Interest to be Acquired Map Sheet Number County Tax ID Number Date of Ownership & Encumbrance Report Encumbrance Designation (s) Notes 33 Column Number Simplifying the Process Instruction Info Layman s Terms 1 Federal Parcel Designation INSTRUCTIONS EXISTING AIRPORT PROPERTY Title Explanation Where to Find Content Unique identifier specifically matching naming in the grant; if naming was "Tract" state that; don't rename to "Parcel". If parcel wasn't associated with a Federal grant, use the original parcel number. SOP Reference # or Optional Federal grant or PFC #2 5 Previously Known as Parcel Designation Include column if a different naming convention has been used in the past, or enter "NA" Previous Exhibit A's or Airport Property Maps #2 16 Date of Date recorded documents have been verified through by attorney or title company. Ownership & Recommended to be provided so Sponsor knows the date information was last Encumbrance collected so the next update only has to collect info from the previously collected date Report through the present date (e.g date of last collection. On , Sponsor desires to release the aeronautical use of airport property and triggers the Exhibit A to be updated. Sponsor would collect new info between the dates of and ) Date identified on real estate document provided Optional 17 Encumbrance Designation Enter the established encumbrance number (see Recorded Encumbrance Table or Unrecorded Encumbrance Table for more info) 18 Notes Terms and conditions or miscellaneous information that describes what is or isn't allowed (e.g. details of avigation easement, interests reserved, etc.). Recommended to be provided to help Sponsor understand the highlights of pertinent info without having to locate the conveyance document. Recorded Encumbrance Table or Unrecorded Encumbrance Table Various (e.g. conveyance document, ownership and encumbrance report, etc.) #6(h) 6(d) 34 17

18 Simplifying the Process Instruction Info Layman s Terms INSTRUCTIONS RELEASED OR SOLD AIRPORT PROPERTY Column Number 7 Type of Release Title Explanation Where to Find Content FAA approval obtained: "Release of Airport Property" or Release approval document "Release of Aeronautical Use" FAA approval not obtained: "Sold Property" If the Sponsor still owns the property, enter the use in either the Recorded Encumbrance table or Unrecorded Encumbrance table as applicable SOP Reference # or Optional #6(e) 8 FAA Date FAA approved the Release of Airport Property or the Approval Date Release of Aeronautical Use; if FAA approval has not been obtained, enter "Not Approved" FAA approval document found at the Airports District Office compliance and/or Sponsor files #6(e) 9 Purpose of Release Identify planned use FAA approval document found at the Airports District Office compliance and/or Sponsor files Optional 35 Simplifying the Process Instruction Info Layman s Terms Land Swap 36 18

19 Simplifying the Process Instruction Info Layman s Terms Column Number Title 1 Encumbrance Designation INSTRUCTIONS RECORDED ENCUMBRANCES Explanation Unique identifier used to name and map the encumbrance. The Sponsor may choose a naming and mapping legend convention that groups like encumbrances together so a reader can gain some understanding of the use without having to review detailed info. For example: 3 letter identifier for the type of encumbrance (e.g. ROW); a 2 letter identifier for whether the use is recorded or unrecorded (e.g. RE recorded or UNunrecorded); a 3 digit number starting at 001 as a running string (e.g. TRL RE 001 for an recorded trail use; UTL UN 002 for an unrecorded city sewer lift station). Following are some encumbrances that may be present and associated naming conventions that can be used to associate and map similar uses. ROW right of way or access NAV FAA or State owned NAVAIDS (e.g. antenna, RCO, ATCT, etc.) or leased space for housing NAVAIDS UTL sewer or water utility TRL trail GAS gas MIN mineral or mining LOG logging FLO flowage or drainage TEL telecommunications OIL oil OTH other use of airport property (e.g. car dealership, restaurant, commercial through the fence operation, etc.) Where to Find Content Established by the Sponsor 37 Simplifying the Process Instruction Info Layman s Terms INSTRUCTIONS RECORDED ENCUMBRANCES Column Number Title Explanation Where to Find Content 2 Airport Parcel(s) Impacted Unique identifier specifically matching naming on Existing Airport Property Table Existing Airport Property Table 3 Description of Use & Dimensions Brief explanation of the use allowed in the conveyance document and FAA approval document (e.g. 66' right of way easement for 15th Avenue, 20' easement for a 6" natural gas pipeline, 10' electrical easement, logging rights, mineral rights, etc.) Conveyance document and FAA approval document 4 FAA Approval Date 5 FAA Approval Type Date FAA approved the use of airport property ; if FAA approval has not been obtained, enter "Not Approved" FAA approval obtained: "Concurrent Use" or "Release of Aeronautical Use" FAA approval not obtained: "Not Approved" FAA approval document found at the Airports District Office compliance and/or Sponsor files FAA approval document found at the Airports District Office compliance and/or Sponsor files 6 Subordinate to Airport (Yes/No) Subordination relates to making the claim or use of one party junior to (or inferior to) a claim in favor of another. FAA Grant Assurances requires Sponsors to maintain the use of property for its primary purpose of being an airport and other uses must be secondary. Yes encumbrance holder's use is specifically identified as being junior, inferior, secondary, etc. to the use of the property as an airport No any other situation Status identified in the terms of the conveyance document SOP Reference # or Optional Exhibit A SOP Reference #6(h) 38 19

20 Simplifying the Process Instruction Info Layman s Terms Recorded Easement 39 Simplifying the Process Instruction Info Layman s Terms Evidence of Recorded Easement 40 20

21 Simplifying the Process Instruction Info Layman s Terms INSTRUCTIONS UNRECORDED ENCUMBRANCES Column Number Title Explanation Where to Find Content 7 Encumbrance Holder Person or entity receiving property right or interest Authorizing document and/or FAA approval document 8 Authorizer of Use Person or entity authorizing the encumbrance. This could be a previous property owner or the Sponsor. Authorizing document and/or FAA approval document 9 Type of Authorization 10 Date of Authorization Formally approved uses some uses may be authorized by approval of the Sponsor, Sponsor, city, county, joint city council, county board, and/or joint board, etc. through adoption of a resolution board, etc. files or an order. If such a document exists, reference the title (e.g. City Council Resolution ). If a document doesn't exist, reference the entity's minutes or the source of the approval (e.g. County Board Minutes, Letter from Sponsor, etc.). Uses that have evolved over time uses may be present that have no formal approval or that have just generally been present. A typical use of this is a driveway that a landowner has always used to get to his back 40 acres. If this situation exists, document as "Unknown". Date use was authorized by the Sponsor; if Type of Authorization is Unknown, enter "Unknown". Identify as listed in approval document, minutes, letter, etc. SOP Reference # or Optional Exhibit A SOP Reference #6(h) 41 Simplifying the Process Tables Existing Airport Property Drawing Easement Notes Individual Parcel Details Encumbrances Future Airport Property 42 21

22 Simplifying the Process Tables Parcel Number Must Match Grant Info 43 Simplifying the Process Tables 44 22

23 Simplifying the Process Tables Drawing Encumbrance Table 45 Simplifying the Process Backup info & documentation the ADO is determining how best to assemble & submit this info Conveyance docs Ownership & encumbrance report Encumbrance info Grant info Drawing Tables Backup Info 46 23

24 Simplifying the Process Backup Info 47 Exercises 3 exercises work together in groups of two Identify Description of the use allowed & dimensions Whether the encumbrance holder s rights are subordinate (i.e. secondary) to the airport Notes that should be added to the Exhibit A to explain the encumbrance holder s rights 48 24

25 Exercise #1 Removal of Mineral Rights Prior to Issuing Federal Grant Exhibit A Findings 49 Exercise #2 Description of Use & Dimensions Subordinate to Airport (Yes/No) Notes 50 25

26 Exercise #3 Description of Use & Dimensions Subordinate to Airport (Yes/No) Notes 51 Good Title Compliance with Grant Assurances Good Title (#4) ensure the Sponsor has good title to the parcels necessary to achieve the purpose of the grant & role of the airport Land acquisition Sponsor responsibilities Investigation of the quality of the title obtained and prepare a submission for land acquired under an AIP project consisting of a title evidence package or certification of title, or both Sufficient title evidence to assure it possesses or will possess sufficient right, title and interest in the property to meet project requirements (e.g. construct, operate and maintain). AC 150/ CHG 7 (7/10/2017) 52 26

27 Good Title If the exercise of rights granted in an encumbrance could adversely affect the airport, the encumbrance must be extinguished with the FEE purchase of the needed land typically Full clear FEE interest is required for the landing & building area of the airport & for any extension All land incorporated within the airport is acquired in FEE simple, with all encumbrances cleared AC 150/ CHG 7 (7/10/2017) 53 Good Title If it is determined that the cost to extinguish an encumbrance is excessive, a FEE acquisition of the encumbrance may not necessary, because the encumbrance may be a. Modified so that the height and/or location of any surface use or access is restricted to the extent necessary to be compatible with current & planned airport operations; AND b. Subordinated to airport use & development. The surface use of any easement or reserved mineral or other allowable interest must be subordinated to the public airport use & applicable FAA requirements AC 150/ CHG 7 (7/10/2017) 54 27

28 Good Title Any retained encumbrance or right for surface use or development is subject to FAA review & approval as adequate title for airport & compatible land use Any defect in title or outstanding encumbrances such as leases, easements, mortgages, liens, mineral rights, etc., must be set forth in the certification to permit a determination by the FAA as to whether they will interfere with the accomplishment of the project & the use & operation of the airport AC 150/ CHG 7 (7/10/2017) 55 Good Title Sponsor certification A statement by the sponsor's attorney to the effect that there are no outstanding exceptions/defects to title that will interfere with the airport is not acceptable without explanation Any defects in the title requiring correction after acceptance of good title by the FAA will be at the sponsor's expense DO NOT sell, give away, or allow the use of airport property without FAA approval AC 150/ CHG 7 (7/10/2017) 56 28

29 Good Title If you are buying land Acquire title work (i.e. an ownership & encumbrance report) before you start & walk the property to identify any unrecorded rights If the title is not clear (i.e. encumbrances or rights of others are present), engage your FAA program manager to discuss how to proceed BEFORE the appraisal is complete & offer is presented If you are completing an Exhibit A Document findings If an encumbrance is found, subordination may be necessary prior to additional federal investment 57 Scope of Work Considerations If you are completing a Master Plan with an Exhibit A Identify land uses that are non-compliant with FAA guidance & grant assurances Document status of FAA approval If FAA approval has not been obtained, document required steps to achieve compliance 58 29

30 Treat Airport Property Carefully Federal interest exists, even if FAA funds were not used to acquire the property Gina Mitchell, AICP, Community Planner ADO: Dakota-Minnesota Office: Minneapolis Phone: (612)