Airport land squabble under FAA review

by Eric Olson

SBJ Reporter

eolson@sbj.net

A squabble over 160 acres north of Springfield-Branson Regional Airport is now a blip on the Federal Aviation Administration's radar screen.

After Springfield City Council gave the go-ahead May 10 for condemnation proceedings, property owner Paul Sidio initiated FAA oversight. Last week, he lodged complaints with the FAA's Kansas City Regional Office over tactics by Springfield airport officials. Sidio told council at an April 26 public hearing that airport officials have not followed FAA regulations, including conducting appraisals and good-faith negotiations.

FAA spokesperson Elizabeth Isham Cory said an investigation is under way.

Springfield-Branson Regional Airport spokesperson Sherry Wallace said FAA officials verbally informed the airport of Sidio's complaint. But that is all they know about it at this time.

"We haven't seen it and we don't even know the subject," Wallace said. "As always, we will work with the FAA."

Airport officials have not moved forward with condemnation, Wallace said.

"In our mind, we're still in negotiation. We would prefer to do that," Wallace said. "We are hoping that we will work something out with the property owner."

Springfield City Manager Tom Finnie said the airport has done nothing wrong. Now that council has approved condemnation, airport officials will take the appropriate steps to acquire the land, he added. The airport needs the land to facilitate expansion plans.

"The process doesn't start with (the FAA) until now," Finnie said. "We are not going to start the FAA-required process until council has given us approval. This business that we haven't gone through the right process is because we start with the City Council. That's who I work for."

The airport board's next step is working with the city attorney and the airport's funding source in this case the FAA to determine the process, Finnie said.

But Sidio said the airport erred when it made an offer on his property without a current appraisal. In a letter dated April 9, the airport offered $325,000 the same amount Sidio paid for the land on March 19 when he won a bidding war against the airport. The property, which lies in the path of airport expansion, was sold by a family trust held by Bank of America.

The FAA's Land Acquisition for Public Airports, under the federal Uniform Act, states: "Prior to making an offer to purchase, the airport owner will arrange for a competent, independent, real property appraiser familiar with local property values to appraise your property. The appraiser will inspect your property and set forth an opinion of its current fair market value in a formal appraisal report. This report will be reviewed by a review appraiser for conformance to acceptable appraisal standards and FAA requirements. After the report is approved, it is used as the basis for the airport owners written offer to purchase your property."

Airport board chairman Bill Kirkman said the airport's offer was based on the trustee's appraisal, which he said was $285,000. Sidio does not consider that appraisal "competent" because it valued the land as agricultural. Sidio is now selling the property in 10-acre residential tracts. Two tracts have sold for an average of $50,0000, he said, and another is under contract.

According to Sidio, an appraisal he paid for set the value at more than $650,000 double the airport's offer. He would not disclose the appraiser, per his attorney's advice. "I'd rather the airport get their own appraiser," he said.

Sidio wants it known that he's not backing down.

"We're still proceeding to market it," Sidio said via cell phone the day after council's vote. He was traveling to the property to post his Ozark County Realty signs. "We're not going to back down. I think they'll blink."

The airport is making its own statement.

City attorney Howard Wright said federal and state laws are independent of each other.

"We are confident that under Missouri law, if you make an offer and that's rejected, you proceed with condemnation," Wright said. "It is something we do all the time."

Kirkman wants the public to know the airport intends to acquire the property.

"It's kind of a buyer beware in the middle of negotiations to protect everybody," he said of council's decision. "We've got to get the land eventually. We will pay fair market value for it we're bound (by law) to do that."

Wallace said the tract has been on the airport's acquisition plan for at least 20 years.