Sat, Oct 02, 2004
Meigs Field closure results in proposed fines, investigation
into grant money misuse
The Federal Aviation
Administration (FAA) has announced that it is taking legal action
over the 2003 closure of Meigs Field which could result in
penalties against the city of Chicago.
The FAA is citing the agency's regulatory responsibility to
preserve the national airspace system and ensure the traveling
public with reasonable access to airports as the basis for its
action today.
The FAA is proposing a civil penalty of $33,000, the legal
maximum, against the city and, separately, is initiating an
investigation into possible violations by the city of its federal
grant assurances and its airport sponsor obligations.
The $33,000 proposed civil penalty stems from the city's failure
to provide the required 30-day notice to the FAA of the
deactivation of Meigs Field. The notice requirement is intended to
allow the FAA to study proposed actions that may affect the
national airspace system prior to the actions being taken.
According to FAA
regulations, a maximum penalty of $1,100 per day can be assessed
for a violation of this type.
Additionally, the FAA has initiated an investigation to
determine whether the city improperly diverted $1.5 million in
restricted airport revenues to pay for demolishing the runway at
Meigs and for its conversion from an airport into a city
park. The city has 30 days to reply to the FAA on these
issues.
The FAA has held several discussions with representatives of the
city to reach an informal resolution of the issues, but it will now
move forward with these formal actions to obtain additional facts.
In addition to the possibility of a civil penalty of $33,000, the
city of Chicago could be required to return monies to the O'Hare
Airport Development Fund.
Should the city refuse to return any improperly diverted revenue
to the Fund, further sanctions are possible, including a civil
penalty of up to three times the amount of the diverted funds.
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