SECTION 30.216. Property Interests

(a) Minimum requirements. No construction project will be considered for a grant or loan unless the sponsor can provide sufficient property interests for development, operation, and maintenance of the airport or air navigational facility. This requirement shall include the amount of property needed for construction of necessary runways, taxiways, and aircraft parking areas, and for initial and future construction of necessary structures, such as hangars. All property adjacent to or in the immediate vicinity of the airport must be clear of obstructions hazardous to aviation or the sponsor shall provide proof that such obstructions will be removed within the time allotted for completion of the project.

(b) Eligible costs. Only the reasonable cost of property needed for present and future development of an airport or air navigational facility or for the removal of an airport hazard are eligible for reimbursement under the program. Notwithstanding any language contained in §30.212 of this title (relating to Eligible Costs), property costs are eligible for reimbursement irrespective of the date of acquisition by the sponsor, if acquired through procedures acceptable to the division.

(c) Title. To the maximum extent possible, and as provided in subsection (e) of this section, property to be utilized for a project under the program shall be held by the sponsor in fee simple, free and clear of all liens, easements, leases, and other adverse interests or encumbrances unless a lesser property interest is deemed satisfactory by the division. Exceptions will be made when it is impossible or impractical for the sponsor to acquire such title and the staff determines that lesser title will not interfere with or adversely affect the present and future development, operation, and maintenance of the airport or air navigational facility.

(d) Certificate of title. Sponsor's attorney shall execute and mail to the department a certificate of airport property interests in the form promulgated by the staff, indicating sponsor's title to all property interests involved in a project.

(e) Leased Airports. Sponsors operating leased airports are eligible for financial assistance grants provided the following conditions are met.

(1) The sponsor is a state agency or governmental entity.

(2) The sponsor has a long-term lease a minimum of 20 years from the date of the grant for all landing areas, building areas, and for areas pertinent or necessary for the project.

(3) The sponsor has adequate control of the leased property to carry out terms of the APPA.

(4) In addition to the certificate of airport property interest, the sponsor provides the division with a copy of the airport lease.

Source Note: The provisions of this §30.216 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.