Monday, June 30, 2014

Federal Aviation Administration building height restrictions could hinder Phoenix developments from getting insurance, financing

Past regional spats over Tempe developments and their impact on Phoenix Sky Harbor International Airport could have been an impetus for controversial proposed Federal Aviation Administration rules that would restrict building heights on flight approaches near major U.S. airports.

Now, the Phoenix area could be a new and intense battleground over an FAA proposal that has real estate and economic developers worried about future construction near Sky Harbor International Airport, Phoenix-Mesa Gateway Airport, Tempe and downtown Phoenix. The new rule could make it difficult for developers and builders to get local approvals as well as insurance and financing. In addition, FAA policies adverse to development could also lower property values of impacted areas.

An official familiar with the issue said the FAA looked at situations in Phoenix and other markets as it mapped out its new policy change. Phoenix, Tempe and the FAA have had past skirmishes over building heights.

Height and flight-path concerns helped kill an Arizona Cardinals stadium proposal in Tempe more than a decade ago on land owned by the Salt River Project utility near Papago Park and the Salt River. SRP also owns Papago Park Center in Tempe where First Solar has its headquarters.

More recently, the 30 and 22-story West Sixth apartment towers near Mill Avenue were cause for consternation between the two cities as well as the FAA.

Sky Harbor may have been part of FAA inquiries and pilot projects into the issue as far back as 2006, and the Tempe apartment development could be one of the main drivers of the new rules, according to the official who asked not to be named. New FAA restrictions could have the biggest impact on downtown Tempe.

FAA regional spokesman Ian Gregor did not know whether past Tempe, Phoenix and FAA spats were an impetus for the new policies.

Gregor contends there is misinformation going around about the FAA having uniform and nationwide prohibitions on any building of 160 feet or more — approximately 8 stories — near airport runways.

“We review every proposed structure individually,” Gregor said.
 

The FAA cannot directly stop development, but a number of cities — including Phoenix — have zoning ordinances that nix projects that the agency opposes or deems hazardous. Tempe, Mesa and Queen Creek do not have FAA hazard ordinances. 

 Even if the FAA cannot directly stop a development or redevelopment, its opposition can hamper a project from getting insurance.

That occurred in the case of a San Diego building that was built too tall for the FAA’s liking.

Airlines could also terminate flight routes or not go into a market if there are tricky flight paths or FAA rules require lighter passenger loads.


Read more here:   http://www.bizjournals.com

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