STATE OF HAWAII DEPARTMENT OF TRANSPORTATION AIRPORTS DIVISION DUE DILIGENCE MEMORANDUM, WRITTEN REQUEST FOR RELEASE AND TRANSFER OF GRANT OBLIGATIONS, AND CLOSURE PLAN for KAWAIHAPAI / DILLINGHAM AIRFIELD Mokuleia, Hawaii December 2020 TABLE OF CONTENTS LIST OF EXHIBITS.................................................................................................................... iv LIST OF ACRONYMS .............................................................................................................. vii INTRODUCTION......................................................................................................................... 1 PART A: DUE DILIGENCE SUMMARY ................................................................................. 2 1 Background ............................................................................................................................ 2 1.1 Overview of HDH and Its Role in the DOTA Airport System ........................................ 2 1.2 DOTA Leases................................................................................................................... 3 1.2.1 History of DOTA Leases ..................................................................................... 3 1.2.2 Rights and Obligations Under the Current Lease ................................................ 6 1.3 Federal Legislation Directing the Conveyance of HDH Lands to the State .................... 8 1.3.1 The National Defense Authorization Act for Fiscal Year 1991 .......................... 8 1.3.2 2001 Haw. Sess. Laws 276 .................................................................................. 9 1.3.3 Current Status....................................................................................................... 9 1.4 The Dillingham Airfield Water System ........................................................................... 9 1.5 Existing Facilities........................................................................................................... 11 1.6 Current HDH Users........................................................................................................ 12 1.7 Available Accommodations at Other DOTA Facilities ................................................. 13 1.8 Status of AIP Grants ...................................................................................................... 14 2 Decision to Terminate the HDH Lease .............................................................................. 16 2.1 Relevant Law / Legal Obligations ................................................................................. 16 2.1.1 Termination Provisions in Current Lease .......................................................... 16 2.1.2 Relevant Federal Grant Assurances ................................................................... 16 2.2 Rationale for Termination of Lease ............................................................................... 17 2.2.1 DOTA is unable to secure a long-term lease from the Army and therefore cannot secure necessary funding to maintain safe and efficient operations at HDH. ... 17 2.2.2 DOTA will never have sufficient control over HDH. ........................................ 18 2.2.3 The costs of operating HDH are excessive and drain important resources from DOTA’s other aeronautical facilities. ................................................................ 19 2.2.4 DOTA’s obligation to operate the public water system creates a potential diversion of airport revenue that can only be resolved by terminating the Lease. ............................................................................................................................ 20 2.3 Benefits to Civil Aviation .............................................................................................. 21 i PART B: CLOSURE PLAN ............................................................................................ 22 3 Plan for Accommodating HDH Users ................................................................................ 22 3.1 Relevant Law / Legal Obligations ................................................................................. 22 3.1.1 Permit Conditions .............................................................................................. 22 3.1.2 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and Grant Assurance 35 ............................................................................ 22 3.1.3 Grant Assurance 22 – Economic Nondiscrimination......................................... 23 3.2 Proposed Plan for HDH Permittees and Users .............................................................. 26 3.2.1 Aircraft Maintenance Operations ....................................................................... 27 3.2.2 Aircraft Tie-downs ............................................................................................. 27 3.2.3 Airport Communications Equipment ................................................................. 28 3.2.4 Building Storage Space ...................................................................................... 28 3.2.5 Fuel Operations .................................................................................................. 28 3.2.6 Land for Bus/Trailer .......................................................................................... 29 3.2.7 Land for Skydiving Facilities............................................................................. 29 3.2.8 Skydiving Operations......................................................................................... 30 3.2.9 Sailplane Hangars .............................................................................................. 31 3.2.10 T-hangars ........................................................................................................... 31 3.2.11 Ticket Counters .................................................................................................. 32 3.3 Summary Table .............................................................................................................. 33 4 Written Request for Release and Transfer of Grant Assurances at HDH ..................... 39 4.1 ORDER 5190.6B, PARAGRAPH 22.24 - Content of Written Requests for Release ........... 39 4.1.1 All obligating agreement(s) with the United States. .......................................... 39 4.1.2 Type of release requested................................................................................... 39 4.1.3 Expected use or disposition of the property or facilities .................................... 40 4.1.4 Facts and circumstances that justify the request ................................................ 40 4.1.5 Requirements of state or local law (if any) which the ADO or regional office will include in the language of the approval document if it consents to, or grants the request ................................................................................................................ 43 4.1.6 Involved property or facilities ............................................................................ 44 4.1.7 Description of how the sponsor acquired or obtained the property ................... 44 4.1.8 Present condition and present use of any property or facilities involved .......... 44 4.2 Order 5190.6B, PARAGRAPH 22.25 - Content of Request for Written Release for Disposal ........................................................................................................................................ 44 4.3 ORDER 5190.6B, PARAGRAPH 22.26 - Exhibits to the Written Request for Disposal .... 45 4.3.1 Drawings ............................................................................................................ 45 4.3.2 Height and data computations ............................................................................ 45 4.4 ORDER 5190.6B, PARAGRAPH 2.15(D) – Reinvestment of Federal Share...................... 45 ii 5 Additional Obligations and Legal Considerations ........................................................... 46 5.1 FAA Issues ..................................................................................................................... 46 5.1.1 Airport Revenue Obligations ............................................................................. 46 5.1.2 NEPA Compliance ............................................................................................. 46 5.1.3 Notices to Airmen (NOTAMs) .......................................................................... 46 5.1.4 FAA Obligations ................................................................................................ 47 5.2 Permittees ....................................................................................................................... 47 5.2.1 Notice and Ongoing Communication ................................................................ 47 5.2.2 Permittees’ Restoration and Remediation Obligations ...................................... 47 5.3 Army .............................................................................................................................. 49 5.3.1 Notice and Communications .............................................................................. 49 5.3.2 DOTA’s Restoration and Remediation Obligations .......................................... 49 5.3.3 Transfer of Utilities ...........................................................................................