Thankyou very much

Responding to your comment on the LWYP web site, you should be scared.

My airpark, Lava Hot Springs Airpark (www.alta-research.com/airpark), has 12 residential lots at this time. I founded it with *exactly* the same positive attitude that you expressed. I was expecting that the airstrip might eventually be co-owned (after full development), and that well-written CC&Rs would provide protection.

I was wrong.

All it takes is one savvy trouble-maker to ruin an airport manager’s or developer’s life for several years. And, that is what is happening here.

Some quick notes:

1. Joint ownership is a bad concept, because all it takes is one of the owners to refuse to cooperate, and a single owner can therefore block progress desired by all other owners. For example, one owner could block the airport from being transferred to a municipality, which has many advantages. Even worse, if you have a single trouble-maker who is doing vandalism, runway incursions, etc., he can claim to be an owner, and the sheriff will have an excuse to do nothing — the sheriff will say it is a civil matter. That’s what happened here, and the smooth-talking trouble-maker talked the sheriff’s department into believing he was an airport owner, even though he was not.

2. Better than joint ownership is ownership by a corporation, possibly the Association entity, if it has been incorporated. Direct owners have no liability protection. Take care when designing the voting and control mechanism.

3. Good CC&Rs are an *excellent* idea, but if you have a serious trouble-maker (as at my Airpark), he will keep violating and keep using the airport even though the CC&Rs ban him from doing so. I had to close the airport on account of him. In my case, the trouble-maker borrowed an airplane for several months, just so he could use it for harassment purposes at the closed airport after he had been banned from doing so. The FAA will do nothing about an airplane landing at a closed airport, or anywhere for that matter.

4. If you have a stubborn trouble-maker, the only non-violent ways to enforce the CC&Rs (that I am aware of) are law suit and fines with the ability to lien the violator’s property. Unfortunately, our CC&Rs do not have fines for violators, only loss of privileges to use the runway. That leaves law suit, for me. So far, I have spent about $30,000, and it will probably reach $100,000 before it is over. Further, I cannot realistically sell lots while the mess is in progress.

5. Make sure you have legal language in your CC&Rs that will require the landowners to pay for legal expenses, for the enforcement of CC&Rs. Also, have a good indemnification paragraph.

6. One trouble-maker attempting to take over an airpark is not uncommon. As hard as you may try to be a “good guy” and fair in every way, you are still the developer. It is not as hard as you might think for a trouble-maker to breed discontent. In my case, the trouble-maker worked three absentee non-flying land owners by phone into following him.

7. Retain voting control as long as you can. Remember, as developer, you are the only person who has the *whole* project as your interest. Any airpark manager will tell you that non-flying residents are poison, especially if they can gain control.

Before all this, I was a naive engineer who loved flying. In the beginning I gave all landowners lots of slack, and helped them whenever I could. Apparently, they saw it as weakness to be taken advantage of. Now, I have a difficult time trusting anybody, and I now run a tight ship. My advice is to run a tight ship from the beginning, follow the CC&Rs to the letter, and be consistent in your treatment of all landowners. No favors, because the benefactor or someone else will use such favors against you! And, be careful what you say in emails because emails (even personal emails!) have a way of showing up in court, and sloppy use of language can and will be used against you. For example, don’t ever say, “Come visit — my home is your home” because they may claim that you gave them part ownership in your house. [extreme example]

Much of the above was learned by hard knocks. However, I have talked at length with over two dozen other airparks, and they all have had similar experiences.

Take care.

… Reed

Even though the airport is “public use,” the FAA says they govern only airspace (not ground violations) and that they will only take action *after* an accident. The TSA is concerned, but so far has taken no action. The county sheriff says it’s a civil matter and will do nothing, even though the airport is in my name.

In other words, in my experience, there is no way to prevent vandalism, theft, runway incursions, etc. at a privately-owned public use airport (except law suit). Contrary to what most of us have been taught, the situation for restricted airports is even worse. 70% of the pilots do not call in advance for permission, and some land even if the runway is X’d. The FAA says they are entitled to do so, and therefore will do nothing. All this, of course, places you at risk with no way to control what happens on the airport.

So, if you are creating an airpark, my advice is to keep ownership of the runway 100% in your name (not shared ownership), or for liability protection, transfer it to a corporation (over which you have a good deal of control). Go into the project with the realization that you can expect no help from any government agency if you have a trouble-maker — and most airparks have at least one. Also, from experience, there is no guarantee that hiring an expert (lawyer) will make you immune to problems — but their advise may help reduce some risk.

Good luck!

Bruce Johnson

The FAA DOES NOT perform appraisals on facilities that are privately owned and privately used according to the local FAA, Airports District Office.

So, here I am again having to hire an attorney to deal with the ignorance and prejudice of local, “baby bureaurats”.

I don’t know whether I enjoy flying so much that I’ll do alsmost anything to continue it or perhaps I’m simply insane. I hope all of you enjoy establishing residential airparks. I’m finding it to be a bitch, at best.

Sincerely,
Dave McKenzie