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HomeMy WebLinkAboutRPT 2 JW AIRPORT SALE 08-17-92{---- .1 ? REPORTS NO. 2 8-17-92 Inter -Com � - • � E= AUGUST 17, 1992 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: POTENTIAL SALE OF JOHN WAYNE AIRPORT RECOMMENDATION Receive and file. BACKGROUND At the July 20, 1992 City Council meeting, Councilman Potts requested information regarding the potential sale of John Wayne Airport, which recently has been discussed in local newspaper articles. In response to this request, the Community Development Department contacted John Wayne Airport Administration to research this matter. According to the Airport's Manager of Government and Community Relations, as of July 29, 1992 there have been at least seven articles pertaining to this issue published in local newspapers. As indicated by Airport Administration and the newspaper articles, Orange County Supervisor Roger Stanton suggested that the Airport be sold to the Orange County Transportation Authority in order to raise money for the County of Orange and consolidate County transportation coordination. The enclosed articles are provided for your perusal. Airport Administration is in the process of analyzing the feasibility of Supervisor Stanton's proposal. A study is currently being done and is scheduled for completion in October of this year. The Community Development Department will update the Council on this issue at that time. Christine A. Sh' gleton Assistant City nager CAS:SR:kd\Jwacate.mem _ r Rita Westfield Assistant Director of Community Development -- Stanton's Idea to Sell Airport Stuns- Officials By JEFFREY A..PEUMAN TIMES -URBAN AFFAIRS WRITER " �v'A--Supervisor-rZog- e: R...Stanwn-on Wednesday- -sug-gested that the county sell. John Wayne Airport to the Transporta- tion Authority- for S 100- million or more to help pay for -badly.needed facilities, such as a, .new ]ail or Sm:' Co ,,y civic�center. The airport is . profitable, but federal law requires that its .r eve - nue be spent only on the faciiity and its operations. ConsequePety, Stanton -said ire an interview--cflLT- ty government would benefit more from a onetime infusion. of =sh than byrnanaging the airport. _ Cash -starved rnunicicai govern- ments across _the country - are searching -for innovative grays to raise money, with �he safe of airports being one option for many Larger cities and counties. `Tice Rresident Dan Quayle has advocat- ed that Los Angeles sell its inter - .national airport to ,iein rebuild uhe city alter :lots. Other county officials were sEunned by Stanton's idea, which e called a "trial balloon." :and their initial reaction was generally Negative. "Obviously :hat is a pretty seri- ous proposal to make. and i don't have .all the zac�. s on ;c."= salt Supervisor Thomas F. Riley; for whom the new passenger _erauial at JWA is named. "But 7ny _initial reaction on it is. a resounding- no. 1 would hooe my other colleagues on the board would fell she s�:.:e way." "I'm Lying to figure out why the OCTA would want to buy it,'" Riley said- "'I don't see who it benefits. The airport is making money so what do -we -.gain -by -this?. free very much opposed -to it -and somewhat angered that (a sale] could be suggested:' Supervisor Harriett til_ -Wieder also was taken -aback: by -,the sug- gestion_ "I don't understand a. pro- posal Uke.that:'wieder said._ "It's a Ptease=see AIRPORT, A96 I John.Wayne-Airport Supervisor Roger R. Stanton It is the fifth busiest in the l United States. But most takeoffs and landings are due to heavy use of the airport by general aviation aircraft - Airport Passenger Volume During the first rive months of the year, before the heavy summer travel season, passenger volume increased by more than 45.000 compared to iast year: Period Passengers January -May, 1992 .... 2.147.=75 ;anuary-May, 1991 .... 2.102. 180 1992-93 Projected Airport Finances Revenue Sources Millions Auto Parking ............. S11-4 Concessions ............... 10.8 Landing Goes ............... 8.1 Terminal Space vent ........ 10.4 Aircraft Tie-0own f=ees ...... • 1.2 SAA Grants ................ 10.2 Interest_ ................... 5.0 .M'Isc. Services. Property Use... 5-1 Reserves ................... TOTAL..-................ Sta4.3 Expenditures Millions professional5ervi�s....._ .. S 13.7 Saianesand Benefits ... ... - A:8 Otner Services and Supplies -.. 9.1 Land..._..._.-_.----------. 5.7 Capital Projects ............. 28.4 Debt Service ............... 20.6 TOTAL ................... 584.5 Source: Dorn, Wayne Airoorr UM Angldes Muss Stanton airs plan for transit superagency By Cheryl Downey T;le Oranae C-Our►ty neacsier Count: SuDe:ti-isor Roger Stan- ton wants he rear-oid Orang= County'"ransportacion AuchoR[T` to soar into new areas of cransDor- cation. transforming .r .nto a su- peraaency : esDORStoie for Lfree- w ays and :011 roads, rail and bus transit, even air _rave:. His most novel idea — as Yet un- ex—iored and noc exacts=• cheered Wednesday — .s for :he county .o sell .conn `gayrne .,.imom to ane au- thorin . The count= !-voLu, retic ::lore than :100 .,inion to deli :=jzth cal needs, such as ouddi�Z; :ails or ►undin? 'basic iealth secnces for decades co come. ne said. while tae 'ransoortanon -senc, 'dally' use 'or airnport-r e.aced Ope:'a[iRg :llnQs oroune .r anspomacion imorove- mencs such as a :monorati. Manton ais0 piaris i0 pus 1 :Or an authoriCY .akeover of :he councy T 'do, rt Transpoation Cori :a oianning idiree .oU roads. creating gencies ng one of the most aL-encomaassing -: ansDorCation agencies in [he na- u0n. 'The goal here Is to further irw Drove the count;: transportab'on system and find -.nays to use coup« assets for very c: tical needs we r e aci.ri, today,"' Stanton said. '`Is .here -anything w–roag with coming ,ID with new and innovative ways OE operating .government?" Stanton, cnaLrm.an of he Boar of jupe_,,_jsors. Baia the one-[im cash bonanza trOGt =e sale cou.i establish an ►nves'anent rust t fund he:.lth care for courev res dents for derades.� Or it could b used to a badlyueraed-jail o a south county `-civic center, n said_ :� - .�_•... _ _. L is is -a.wayv:.o deet the d mends now being placed on county 'without raising axes. Stancon�aid. "Let's flood the tab with ideas and maybe some ,x; vor`. 1 don't vtow ;his one will." Somne of Scal-tton*s :eiiow count= _uDer-,rsors said _ edresdae ^at :he i racsoor•_arion a uthon. snould remain '_�undedc and .te counn , shouid icer: Control over its skieIsdon"t churik sale of the air- port is in .he gest i�zterests of Orange County.** =aid Suger%' soy Thomas Riie . ':�-o conceded chat his "nose •was O 0C otric 'haC Stanton's or000sa: ca^,e out of _ne Niue. The airport .s .n Ziieyr s dis- .rict and its Dasse neer -erminai .s narned after :zit.. Suver -visor Gae=.ii -Vasquez said Piere were sig=icant �rooiems vita tae iae. Th= T• ansporaaon Authorit•1's rsc :riorir<° :s .o ad• ,iinister nc ��._ OLID n. �� gear Measure �e :r anSpor:aaon sales tax. he saie. COu've a0t :o _earl :0 Craw! oe- :ore •*ou can Ya::." vasouez said. " naintaut ��e -e s=ii in cnec:awi- ing mode." , Stan Orte ie, tie aurJ10 [y S Cale. executive office:. said tie was un - sur a the agency cotiid afford -o take over b©th a ;Lebc-laden airport and a _oiiwac: e?encv currently. searchLrtg :or - undin; co carr, c chrougn co :ans:^ucaon. ,11s the a: -Dor. worn 3!00 minion .o =.:s? It's an .dea. an une.:piored ;heti. Ofteile If the a ,mor. wer- said for a minimum 3100 =dUon. -he author- ;tv could :ed'bonds and raise a.r- OOri lees t0 vat'`hem oil. Stanton d said ;dednesdar. ;ir-ort �mcome e mit_ it also be _sed o ;mance ai.-- po t -- ' .-eeway 'sZiDrOvr. o Ments or -ail s ='stems. he added. t- He coaceded'sat obstacies ersr- e Among -hose �stea 'bv au --per r and counts ofr"_c:a;s are S2, e don in bonds Owed for the new ter- �al, em sting noise-restricnon agreements�witi surrounding com- he mumdes. -Federal Avriadon admin ,. iscratioa to vestments lil the airport ie and rhe erect 0i raising lees is a ii depressed airiiae market. 0 o C =�F 7:c C., v `.d ��a oil X goo 01 t, w o -o aC Ao •; o � � vNoe �� � rd•• � y b � •O =� P. 00 o N r �; ti 4-0 On ct+a vi 7 M .0 01 Ito V V S a v o ra (q V w S :. .°: o. t' C w o J: (y y «, r1► o [+ �q n o c ton OC 4.4 •�J.il i^.No, n o eCpi i^.V 1, „O o w j: u aM V10. �C!! S . oVC ZJ Op?,9i'.eo -iF'a :2I►.li o. d 8.4 S .c: M v ;.`VI v � o p rv. v � pn o 0, 11) ' Gr(,�y Y 1 Pt 0 S Oc in V v n 011 >O. g � ►t� L. a O c� . V w V Lu In to .. 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V V u O ffN On t� ., r. O O r a, o. O d I � I . C)I2ANG[i COUNTY AIRPORT: Concern Over Sale Proposal t:nnlinl►r►) (tont III Por title. I11hlp, .",1111101► 1►roposed •htw- Orampe Cotml y Ti-nnsllnrl:i _ The nirl►nrt r•0111111inrloll .e ('--1► . trllh►p the nirpnrl. tin[ In n privnle lino Aullor;ty t►1ny hr Mile In 11-11, howrver. sere 110 f11lurr fell. i1r►1, hill. In -mother pnvrrmtnrt►t lim"nrle C mrpress Ili -it. il. drserven Salami's propnenl ell nil. 1►pt•ncy—the t)rnnpr Cnuttl.y Trnnspnrfnl.lon Attlhoril.y. Anti I.he 1 similar rxrml►lirnl. llatvlil, for ex.-imple. has ahrndy permindrd I "II iem'1 pomp to po nmywhere," :Illthorlly would have. In neck sl/e- Conl'rres In allow Ilse of some said (;- tini.m. who drsrril►rtl live• con:rpt as 1 "raid" nn ahprn•I- clnl le►;Isinllnn or Irttse the ndrport to t1 priv-le firm lit no -tier to tree off-sltr, duly -free shop revrntr f/1►- IransporInIloo 1 projects. ft11►11s. **'I*llr Mirporl has l.hr nbillt.y rlt•hort revel►ur for rinds or rail 1A'hilr New York Intl Ilnsim now In spent- snug of It:-. n►nmry nn rol►nrrlh►p rode In the nirporl, hro)eei!:. Rcrnuodly, nitllrntgh other air- hnvr• !,rrinus problems. Voole spiel, Cnm Framrlsco's nirport has (tone with11nl nevy Irsmvsfer r►f power or ' privaliz-1,11111. Amd It*?: n very ► ►01•Is hnve herb transferred he. well ►►t►rlrr the m111ngement of not wrnnp I.ho►p to cin 1►rra11se II.'. ; weed anverlimcnt npencirs. Ito chsh chal►ged hanols. Por exa11114r, nrttfww"llolls porl. authority. i hid tn11i Priv itiznliot, Tonle nr- rnl►hfop, Prlrr In pny 11ntll... the ferlernl 1',►nvernntent has trans. gurrl- would work hrl.lrr nl Moot Ile said (lie nirport's siorcrss nor) Terrell Its omirt-thill of Washilig- Wnyor. its role is - h►Mpmel for )ohs in live ton's National stood Uldles nh•porls I.n t►cw, regional nuthorlly• •Mlle prohlrn, wilh OCTA buy- stlrromidinp arra wnitirl he Irol►- It Srnl.bmcnl. 111111111 srllti►p, .1rihn h)g John Wayttr. Airport," I't►nlr said. "is Ihnl. f)C."1'A would hnve In ardized If rrnll.rnI weal. to Ihr Transporint.inn Aulhnrily. Wayflr Airport In mixed. "i dolt I. know what to thlnk:' (liveft 11 allelbll't-1;fm. fllllris Io pay fnr it_' '" flit stipetvisors i)avr 1 I►Illeh Snhl Newport "each CnUnrilmnn ntd there nrr other options. it.T. brnader view of p,0vrrnincnl ll►;tn - OCTA flocs," he said. '•nC'1'A john ('. Cox Jr., n veleran of hntl-noise lawsuits NRllnst. the air-(lplmlhrlmer MrNamar, n mmtnping direclor of d. (;o. in I,ns Anprlrs, wotdd politicize the nirporl.." 1►0tt. 1'rlvAliznl.lnh is 11,-pprnlnp, slid the Trn11sportnlinr► ngellcy Cnsl►tmlm snitl that herntlse the nil over the wnrlt. . . . Govern- rollld horrow monry In Lily Lite aill.horll yrs I t • mmither tuned Ions 'Mehl Is revlewing (ll. oprrnli01►s In aihxwt anti repay the lonris with six city reprrs!•ntallves, the citles leth►s of how It can downsize Ind rrvelmw from leasing, the airport In wnlllrl rnch Jockey for poeitlow prly-stize, and 1 hnvr mlxrd rin0- n mlamigcoiciA firm such ns i.nrk- And If the r1ty represreitntives �,110nsnlx►ul 11..... bred Air 'Term;nal fnr. Lockheed e-nMr from hostile cltles stirrrnn►d- C C encrMlly, governmrnl. In J11mt . ' ol/rr-ales sever -1 nirlinrlc 11•otlrtd the n3linn a11d is owner-nprrnior of ti►g lir htrpnl'I., •'they wmild strnn- plc It. . It wrinld stnpnaic the • Ion hiind, is Ino lnvolve.l p, h :Ili a Int sl11ft. Prom lhnl slant-_ II►e nr•w ler►mima) in'I'nroisto. wsty bong, hrnch Airport. h:ls lie. 0f .Point. mrtldna .1."1111 Waynr may be Or211 a Comity Air ►ort Cninntls_ ghnhrrl ca11.r nn llnhllcinn has the pull to cin nhythlnp, with II.." . pond Iden,'• he s.11d. "I lit Tell not si01ler (':vshmm► said l.h-1 • fhmilllr wll.h all the tradr-riffs. -; ljttj Imlwhilly tolyl joist Inky. -i,oclthecrl and another crnnpnny, il- Int Tea w01t t tlop Thr Mly light tlnlllll.ef)ly flghl '1'1111.^.I►nttnl.lon ynll ;•-hal I►tone-y and eprttd It 011 )uel Contarco, previnllsly expressed Itt_ tempt In IeMsh/p, or mn11af;hlp, Ihr Anl.horlly cooArnl, officlnho snld. •:�dhyl ping;." •tie I Attd our. lactic Is to spnrk frits of higher Licked title to htctcas- ' Inlcrd, New York held Ilostnm hlrporls ore p0nrly rum by little- •� ns n rompilly me ht the hnslr►r•se -port prices rs In 1.11111111P. fres. .1111111 W;iynr prnlrnl. porl. M111.110"Mrs partly he- of ah privntiznll01t.' said vip,pn M. Bottler. presldrnl of Airport'. 111►tiinp, tris -re. Motive caNsc alrpnrt revenue has her's lxwkhred Air Termimal tile. "We hvernpr nlrrarly. tnlrlrrl to solve 11011-011•porl hmtiprt would lie inleresled ht mak111R an "i)tlr conrerns are pretly fltndn- wors, mild Robert W. Poole of the nrrangrinrnt with Lhr comity. . . . menial." snlrl llogri• Cohen, vier ilcn.^.nli ): olbtdallon, a 1.ilwi lnril11- lhittl the piece 1.11 not sure nhnnl is prrsidcnl of governmrnl. affairs for "dented Ihlnk 11111t. this inlrrpovernmentsol transfer Ihr. All. •Transport Assn. In Wnsh- hmrllrr this year, i'onle pers11nrl- hetwrrn the county and OCTA.'• Ingtmv. "l tow would the l.ravrling ed vire president, Dnn Q11:tylr to it would he illrpal to transfer nn htlhlir 1lcmefit? We've yet to see not r Lite sale of Los AI►l;rirs to alrpnrl i.lml. Is nIrrmly pnld for to il►slnlver whelp II. 11". . . . We nre 111niro". 1.rr1i-1.Io11al Airport a privnie amot.her povermnenl ngenry that nnnll.ernMy ol►posrd to five use. of firm In ortlrr In ralse tinuls for would have In pay for it npnin, In nvialim► revrntlee for nnyl.hlnp rehtllliling rlol - torn nrras• rffrrt blllinp, Inxpayern Itvlrr, i111i_ other t.hnn avlalirn► l►11rposes." Mot slendfnrt oppnshlon in l.or Irr said. Anprlrs from alrlines, nirporl Irr- - ........ ......._ ......-.............._-...._. _. _:......_ . . Motu' and olltrrti line so far Worked� n the rnee tit Jolm Wayne Air - such n male.. A conrultoriUs report "I. however, ilio -1. Improve- intllid lhnit, tile_ ill -port would Fell- inentc were rlimm-rd with bonds craft! more hmnry for the rily If it being rrpairl with nirlh►e I-mding tem:llned plllllicly owned or Is, fres Meal simllnr rrvrume, with only not histrad nt sold notriphl.. Sn city a .mall share rovered by federal offlclnls are pars illi►; the idra of a 1 n r►vrney. city Chntlrr Mlncndn►rnl hint "Straight. privnliz-liolt would he would i elp free ill- sour nirporl I►rlly r thnii a Lrinsfer of nodiorlt-y rrvcnne for use elsewhere. In another nprrmt.y." llullrr said. 'Thr pout Pollliorll.lrs ill New Ilrtl. we•(t .1111 hnvr to look at York nod Iloslon ore nl►Ir to rlivrrt wllr{Iver it. was ernnnmlcally frnsl- alrpnrt prnflls, hoole said, hr•catorr hit!.** ell a ptnhdlather Otiose when (:on- A rerrml exrr11livr orrlrr signed grrs; prolliblI&I site)' brhnvinr. by t'rrcidcnl hush allows Mlrporl_a Thr theory wns lltnl. New York and In I,c trnnsferred In private cnrt- Ilosl01t nirporls ore npernlyd Ivy rrrnc wilho11l. raiiiii11p, nfoul of the ngr11.lrs 161. hnvr Intilliple (rams- rrelrkl;nmsnit 11seof nirlx►o•t timlds. hnrlMllon responsihillller. sur)1 a. New York's Ilnllnnrl TI111nrI Aral (lef�rring to SI-antnm's .loin I ship hrrll►s lit Ihr it-rhrn.^., Wnyne Alrivorl. propos-1, 111dirr saki—1-ho, rnmrrht is flue of Iltvrs- IipalinP fima11cial mrrd vrl-stts pr11- i drat tVeint.iom. -mt1 wp, think we. , ram lc;-Ipr thosr I lihips " Terminal. complacency Pctllclghlc, Ihr. way Sup►crvis►►rr: Innt the') r:ulslmrlalinn Authority ++v►uld he I1.11d p Itilry alttl 11:11'riell Wieller l;rvult.Il .1 I'l•C.-v'rd I.► (•►►I►►r 111► +►.illi hill(1►►II►►1 �/llllf•. 11ngrslloll 111.11 the s1;1111s (lun be lire Itlered wiih ...- their reatlu or nulhorily dimtui- until((• I►rivale m:u•kr.te. Vor slillilor Iillaucial 1ra.ons, O Ilrlvnle (SllcO -••- (hrot11l.I1 Sale nr.lollt/ 4Vayllr Ail'pl(►rl, owl ICI* +Vnllld, Ihrol-ClIC:Illy, ell.joy Itl(tre flex- SIt1►ctvlsor Itngel• Slanlon's "Irinl balloon" t(le:t or Unlondiull, the nirlmrl. ill ol•drr 10 mld ibilily in op►erntirnl. Acluglly, Ihnl's 1101 JIIs1 sp erilln0ol►, it's the experience III olhel- I(xt Itlilllorl br Itlore to rnunly c:otfers has his Cnlllltl•ies where airports I►nve bccn sold ofr. colletll;lles rollhil; Illrir ryes. "t dotl'1 umicr- III ('annda :11111 (:real 1Stil.1in, Itt iyalhgllnn S-1:1114.1 :1 I►roliosnl like Iha1," Ms. Wicdrr told lens t►rolight ioCrrnsrs III nirllorl safely and no inlrrviewer. Por his pearl. Mr. Kiley for an►f►iruicv. ns r►loillll►rot and facilities Itnve whom Ills ah llorl's llcw ImsscOrcr lerllthull is 11:111ir(I ... sold he didn't halve life fncls to been up/graded. 'There's n tick bctwerui the .1irPol-I (.slle nl:lke q Ju(11l.111r111 -- Ihro proccefiect to offer and lvhnl's r!ning, fill in S:►rt:lnlrttl(i. n JIIdt;lilt-Ilt: "a resnUndhtk no." So, Otte or-Ilse iron rows of liuhlic life wns on tunlfrrs me liehatinl; I►ov hill. q lilt In (oll)►sc on COunlics .1nd cities to Kehl close the slnte dis(►Iny: Ally Plan In reduirc Ilir Ilower or .1 p 11111 111 will be ORRI sivcly I tilyd b.y • 1,11(trel dericil. Oultil rrcrnity, we were nl)- posrd to stich l►Itck-l►nssior, file Ilrosl►ccl. of 111:11 polilicl:ill. It is to Mr. Slnnlnn's Credit WR nr(v rxp+eoses m beiroisled onlu loc:tl- that, in lhls C-Ise.1t least, hr is detying Ilint itles, Iwt.- r buck p►nssinR ui111!Itt trail Io IJIIy by promsillh Ihnt he alld his te1111w -;If- hil:hcl• local levies. Bill file resjmnse (ir'1'oh1 I+rrvisors (ivi:st Ihe11►scives or o11r or the Riley qu(I Ilal-001 Wirder to Mr. Slttulo11's has rrconsidrr. County', is lif;krl racililie.. (:I:utlyd, the sI,r(:ifics or his prop►nsni airport nlll.i11l's IIIh(le IIs Wo(Ild it rrnlly 1►e 111.11 easy In mise (axes nd1;111 he less lh:ut idc.1l. lie's talking; about .11 live Colluly and city levels, the tllood or lut•1111tp., Ilse nii-l►orl over to the 01'.111pe Coull- I.1xl+nyers hcinll..1s ornery ns it i.? If sidle ly TrAnspol'Ialiof Allthol•Ily, itlothrr Inyer nclious Ird (o :1 ntaJorAhUdgel CI-Nur.h rot or flnvernnlcnl ol►e1:11618 llnder.1 Ig11ire or .ubsidles Ilial ,;k(-.%v inccnlives and Illider- lo(1nlilirs, iso'► it Just ns possihlt that the Ilnrrietl Wic(let quid 'Vont Hileys would ri- n11uic crricirncy. 1lally lie r(►I•(-rd ►)III or Illeir Cn111i/laccllCy, S01,1111l. to the Iwivale Secloh would nl.1ke lunl•r Se Ise, provided, or cmn-sc, 111.11 leQ.,n1 lilt I-r e- their- 1'eluCl.1uce In consider dr.1111.1I1C re- locy :t11d crnlinh►g to snve On s a•slr.1 formnd Iitt Ic(Illtteltls tonld be C.leal-ed. 1t the nlhl-l(ct I apse 111n11ey? These It Illllllr. or btlslnt'x�'nS- vnitle or the nirpol•1 Is ill rgcl III the OW UsIl.11 h,lithl be (101111►gilled to sloll scorriltlt Al, I1lilllou r:Ull;e (lint some observers rslilllnte, ilmovntors like Roper S1:111(oll. J . 3 . SCrOOL=! L TA A L":•`N XARCN :ZQS��TSCN ALC_ SGCZIS► - qui icing ;< - 3ui i di ng K - 3uz i d i ng K- - - wilding K COURTNEY '�I_ C_CC - 3ui idina :< M�".000 i ;A L! ?A i '.4AIS �AN�CM %J % ;L'N :aURPh'Y ZA ;R:j OIVi7SCN ?HONE %1J1P1EAA`"(1�1q 0281%4 - 3ui icing ! qui iding -=uiidinq :uiiding M 3ui iding - 3uiiding `• at _ 'z�inai Airport salt grounded, )o- But other county officials say county could use money from sale of John Wayne Airport to build other facilities. By Ross Loar j",uLe-C rf-o7a -gs,2 Statt writer NEWPORT BEACH - Put- ting the county -owned John Wayne Airport up for sale is an idea that just won't fly, ac- cording to Orange County Su- pervisor Tom Riley. "The suggestion is not viable and I don't think there will be any effort to proceed further," Riley said. "I don't think it will become a formal proposal." The idea came from Board of Supervisors Chairman Roger Stanton, who believes the coun- ty should consider selling the John Wayne Airport to the Or- ange County Transportation Authority. The county is cur- rently limited in its use of prof- its earned by the airport to air- port -related expenditures. "What I want to do is look at the assets that we have - the airport being our major asset - and determine whether it makes more sense to the tax - proposal Riley says paver to hold those assets in county hands or divest our- selves of those assets and look at the revenue to be gener- ated," Stanton said. The estimated S100 million to 5300 million received from the sale of the airport could be used to fund construction of a county jail or South County civic center. The money could also be used to create an en- dowment fund that could gen- erate as much as S15 million a year in income, according, to Stanton. "What I'm trying to do is come up with what I call a stabilization policy for the county, to take us into the year 2000." Riley, for whom the airport's new terminal was named, said the sale of the airport would threaten a hard-won 1985) agreement between city, com- munity and county officials to limit noise. Selling the airport could also eliminate the coun- ty's ability to influence the se- lection of a second airport site, according to Riley. "We've heard from the poli- ticians about selling the Los Angeles airport, but a quick fix may cause more problems in the long run," Riley said, in See AIRPORT/Back Page From A10 reference to Vice President Dan Quayle's suggestion that Los An- geles sell its airport to help fund rebuilding efforts. Airport officials say they will brief the supervisors on the issues involved in selling the airport, such as the status of grant monies and the airport's $242 million in bond debt. Orange County Transportation Authority Chairman Gary Haus- dorfer said the county should be looking at new ideas — including the sale of John Wayne Airport — for generating income. "It de- serves consideration and study," Hausdorfer said. "It should not be arbitrarily rejected." But Riley said a majority of the supervisors have rejected the idea. He believes the county must retain ownership of the .airport to honor the 1985 agreement to limit noise. "We have made a commitment to a significant segment of the im- pacted areas that we are going to live up to that agreement," Riley said. "I worked very hard in get- ting that agreement and it's my in- tention to see that we don't break that commitment." M Plan. to Sell Airport Not. -Yet Ready to- Fly eQtiestions of Financing, Control Need to Be Explored range County Board of Su- agree for the moment that the pervisors Chairman Roger R. 0 airport should be sold, the next Stanton has come up with an question would be, to whom? If Idea for finding a sizable pot of obtaining a large amount of cash is money to relieve some of the coun= the only purpose, then selling to a ly's fiscal woes: sell John Wayne private firm makes the most sense. Airport. to the Orange County But how .would that affect the deli-. Transportation Authority. While cafe settlements that were reached certain aspects of the idea are in- at. John Wayne over noise lawsuits triguing, a thorough evaluation of filed by area residents? what would best serve the public Stanton believes that selling the interest is required before such a airport Ao the Transportation Au - proposal should be allowed to take thorily might be a better idea. He flight. argues, for one thing, that bringing The sale of public airports actually John Wayne under the OCTA ban - Is not that unusual these days be- ner would consolidate transportation cause government agencies across activities In the county. Also, the the.nation—even the world—are in Transportation Authority might be desperate need of cash. Unlike many able to loosen up the restrictions on publicly owned agencies, many air- airport revenue in order to build, ports, including John Wayne, gener- say, a monorail serving the airport. ate income. That makes them at- But the OCTA doesn't have $100 tractive to private enterprise. But million or more .sitting around. It from the perspective of the cities would have to get the money to buy and government agencies that own the airport from somewhere, prob- them, airport revenue is tantaliz- ably by floating bonds that would ingly' out of reach because, under have to be paid back over time. The federal restriction, they must be transportation agency could finance used only for airport -related oper- this debt from the airport's revenue, ations and improvements. Outright butt hat's money now being used for sale is.a way for public agencies to i othethings. What's More, the pub - extract at least a one -lime windfall lic would end up paying Interest on a - from their airports. debt ihcurred_for something it owns In Orange County -'s case, many outright. Is that wise? good uses could be found for money Obviously, there are many things from the sale of John Wayne, which to be thought out about Stanton's .. Stanton estimates could be sold, for surprise proposal, which he didn't $100 million and others say is worth even share with his own colleagues much more. Proceeds might be used, on the board before * announcing for example. to build a desperately publicly. Because of Stanton's lone - needed new jail, which voters so far ranger style and propensity for po-. have refused to authorize. Or the litical strategizing, it's tempting entire sum could be invested and simply to dismiss the airport propos- Interest used to pay for health, al as yet another power play. It's not welfare or law enforcement pro- hard to see that putting the airport grams • over the course of many under the Transportation Authority years. The latter is an especially would put the agency's chief execu- welcome Idea in a time when Orange tive officer Stan Oftelle, a Stanton County is being forced to slash ally, in a better position to call the programs in the wake of California's county's transportatibn shots. ' fiscal crisis. But at best, Stanton's proposal Things are never as easy as they seems worth exploring—though it's seem, however. Even if one were to a long ways from takeoff.