SRQ airport pushes back against FAA, says land sale to New College of Florida is justified

The Sarasota Bradenton International Airport is pushing back against a decision by the Federal Aviation Administration that nixed the sale of airport property to New College of Florida.

Airport officials claim the FAA erred last month when the administration rejected a $11.5 million sale of 30.94 acres of land to New College with claims that the authority was unaware that airport land was leased by the college, that the land could be necessary for future airport use, that the land valuation was subpar, that zoning for the property does not allow for college dormitories, and that the college's current lease does not meet FAA requirements.

The college already leases most of that land from the airport under a 99-year land lease that was signed before the FAA existed. New College pays $108,072 per year for 34.8 acres, and its lease ends on October 2057, but college officials insist the sale is a critical step in securing funding for the college to secure long-term plans that include building upgrades and new facilities.

In case you missed it: FAA rejects a major land deal between New College of Florida and Sarasota Airport

More: Why the FAA rejected the New College of Florida and Sarasota Bradenton Airport land swap

Previously: Officials detail plans for major land swap between New College and SRQ airport

Airport CEO Fredrick Piccolo rebutted the FAA's denial of the land sale with a 99-page response that included copies of claims raised by the FAA, 60 pages of records disproving many of them, with line item responses to each claim. He asked that the FAA reverse its decision and allow the land sale to proceed.

"These findings are without sound basis and materially incorrect on numerous facts, therefore the release should be approved by FAA and proceed," Piccolo wrote.

Was the FAA aware that New College leased land from SRQ Airport?

As a part of its April response to SRQ's land sale proposal, the FAA claimed the land was leased to New College without the administration's consent.

Piccolo's response includes numerous historical documents to the contrary. Historical records show that FAA representatives were present at public meetings in the 1960s on the lease agreement, news articles that show the FAA reviewed college plans, and multiple letters.

Does the SRQ Airport need land leased to New College for growth?

The FAA questioned whether the SRQ airport needs the land proposed for sale to New College for future expansion plans, and claims the airport's FAA-approved layout plan and master plan are outdated even though they were approved in 2021 because the data could be at least six years old.

Piccolo indicated that the airport has commissioned an new layout plan for the FAA that would depict plans for a future 32-gate terminal and show that the expansion would not be affected by sale of the land to New College.

Was the appraisal of SRQ airport land subpar?

The FAA claims the land in question received a subpar appraisal that evaluated only 8.85 acres out of the 30.94 acres of airport property slated for sale to New College.

Piccolo asserts that the airport submitted documents from two appraisers, one commissioned by New College of Florida and another commissioned by the SRQ airport. He indicated that the appraisals were over $4 million apart. Still, the airport has commissioned a new appraisal of the property that will be supplied to the FAA once it is completed.

Does zoning allow New College to build dormitories?

The FAA indicated that a portion of the airport property where the PEI dormitory is located is zoned as Medical, Charitable and Institutional and does not allow for residential space. It also indicates that FAA guidance requires airport property to be zoned as airport or light industrial to remain consistent with federal grant assurances.

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Piccolo responded to that claim indicating that the City of Sarasota zoning code specifically allows colleges in the zoning district, as well as student housing and health and sports facilities as accessory uses. He added that the New College lease was signed before the FAA existed, that it received FAA approval before the administration's regulations were created in 1973, replaced in 1989 and replaced again in 2009.

"The uses, including dormitory facilities, were approved by the FAA as evidenced by the 1960's official Federal Aviation Agency documents," Piccolo wrote. "To reverse that finding would constitute a taking of monumental proportions."

Does the New College 99-year lease meet FAA requirements?

The FAA indicated that the 99-year lease held by New College exceeds the administration's 25-year limit, and indicated that any lease that exceeds 50 years requires FAA approval. The administration also requires land to be leased or sold at fair market value, and indicated the New College lease rate of $108,072 per year could place the airport in conflict with federal grant assurances.

Piccolo re-iterated that that New College lease was executed in 1957, before the FAA and any of its regulations existed including those approved in 1982 that govern grant assurances. He indicated that the lease did receive FAA approval in the 1960s without objection to the length or terms of the lease.

"Even if it were true, it would appear to be in no one's interest to maintain the status quo," Piccolo wrote. "The submarket lease should be terminated, and the property should be sold tot he college for current fair market value."

Does the land sale benefit the airport?

The FAA also claims that New College is not paying fair market value for the leased land, creating a conflict with grant assurances for the airport. The lease also does not provide for re-appraisal or rate escalations, "which may constitute ongoing unlawful airport revenue diversion."

Piccolo asserts that the New College lease cannot be unilaterally changed nor terminated by law as assumed by the FAA in its calculations, and that it is the FAA's denial of the land sale that would force the airport to continue to lose revenue for 31 more years then bear the price of demolishing New College buildings.

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This article originally appeared on Sarasota Herald-Tribune: Sarasota Bradenton airport responds to FAA, says land deal justified