LAX Official Cites Hurdles in Diverting Funds to City
“Substantial hurdles” remain before revenues from Los Angeles International Airport can be used to help the city of Los Angeles shore up its severe budget problems, airport Executive Director Clifton A. Moore reported Wednesday.
The City Charter, federal law and restrictions on airport construction bonds prohibit revenue generated at LAX from being redirected for uses outside the airport, Moore told the Airport Commission.
While those restrictions might be removed in the long run, Moore suggested the city might benefit sooner through short-term measures, such as the transfer of about 200 acres of excess property north of LAX to city ownership. The property then could be leased or sold.
Airline officials told the Airport Commission that they will oppose any of the $25 million in annual net airport revenues from being used outside of the airport. City officials have forecast a shortfall that could top $150 million for the coming year.
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