In short, the relationship between the city and the airport has crash landed.

• Last week the Rhode Island Airport Corporation (RIAC) released an Oct. 17-21, 2022 Federal Aviation Administration audit directing that it cease making $500,000 payments annually to the city for fire protection. Jonathan Savage, chair of the RIAC board is “disappointed” by the directive, but adds, “They make up the rules and we can’t do much about it.”
• Meanwhile, the city has filed for a review of the FAA finding of no significant impact of RIAC’s plan to build a $100 million air cargo facility south of the terminal. Warwick Mayor Frank Picozzi, and City Council President Steve McAllister want a guarantee that access and egress to the facility won’t be from local roads. RIAC says it will build a rotary enabling cargo vehicles to use the Airport Connector. Both Picozzi and McAllister want the guarantee in writing.
• RIAC has proceeded with construction although the city has not abandoned or sold the rights of way to portions of three city streets within the scope of the cargo project. Such approval would require council action.
• The city failed to follow a 25-year lease payment agreement reached in 1999 for airport land used for Fire Station 8 on Post Road. That came to light when Picozzi became mayor and the administration and RIAC agreed to an amended lease in March 2022 that calls for quarterly payments of $10,304.96 through 2027 when the full amount of the initial lease - $206,099.20 - is paid off. The payments are to be deducted from the $500,000.

If all of this appears somewhat confusing, consider questions being raised over the mayor’s authority to hire a California law firm that specializes in aviation litigation without advertising a request for proposals or gaining council approval. Picozzi said Tuesday he had the authority to hire outside counsel.

Apart from the Air Cargo issue, Picozzi wants to see “what prompted” RIAC to raise the issue of the audit at this time, what RIAC provided auditors and he asks whether the agency will appeal any of  the audit findings within the 60 day response period.

Additionally, in reading the FAA audit it is apparent the $500,000 payment, which until now was considered to be a payment in lieu of taxes (PILOT) was identified by RIAC on FAA forms submitted in 2021 as “a firefighting service.” Yet in April 2004 the FAA New England Regional Office deemed the $500,000 fair and reasonable for overall city services provided the airport. However, the audit reads, “We consider the activity provided to PVD by Fire Station #8 as mutual aid and should be provided … free of charge.”

 So, is this simply a matter of properly classifying the payment to meet FAA guidelines?

“We have discussed it with our legal team, the law is clear and we must cease the payments,” John Goodman, assistant vice president for media and public relations, wrote in an email.

Further, raising the specter this issue will also drag in state officials, the audit notes; “Rhode Island State Law § 1-2-17 Payment for compensation for municipal services to the city of Warwick states ‘In the event that the FAA disapproves this payment from the airport corporation, the state shall pay to the city of Warwick the sums of money required to insure that the city of Warwick receives five hundred thousand dollars ($500,000).’”

So what’s next?

In an interview Monday, McAllister summarized the situation “is heating up.” He said he met with Savage and Ifikhar Ahmad, RIAC president and CEO, before the matter of the audit was raised.

McAllister has also talked to the mayor. He said, “I have a good relationship with both sides,” suggesting everyone get together and hash out an agreement.

Asked about the retention of Steven Taber from the California firm of Leech Tishman in July, McAllister said the mayor told him the city was up against a deadline to file for a review of the FAA decision, which explains why it didn’t go to the council.

“He said the city was pressed for time,” McAllister said. The city retained Taber at a $490 hourly rate on July 27. The deadline to file for a review of the FAA decision was July 30.

“Let’s take some logs off the fire,” said McAllister, recommending the parties narrow down the issues.

Nonetheless, McAllister gets heated over air cargo traffic.

“My number one issue is I don’t want traffic coming through the neighborhood … that is something we all (the city administration and council) agree on.” He also concurs that it’s going to require a signed agreement.

“You can’t do something on a hand shake,” McAllister said. He doesn’t want to see UPS and FedEx tractor trailers and trucks on Main Avenue accessing the air cargo operation.

Picozzi had not heard of McAllister’s proposal to bring the parties together Tuesday. He’s looking for a meeting with RIAC, the governor and state legislative leaders to address his concerns with the air cargo development.

On Nov. 15, Picozzi appealed for the assistance of Rhode Island Senators Jack Reed and Sheldon Whitehouse and Rep. Seth Magaziner to bring “RIAC to the table to settle a matter related to the South Cargo Facility Project.”

The three members of the congressional delegation responded Nov. 22 that it appears the cargo project “remain(s) in litigation at this juncture. Our offices would not become involved in matters pending before the Courts.”

House Speaker K. Joseph Shekarchi called the issue “a very serious problem with long and short term implications,” in a telephone call Wednesday. Like McAllister, he believes a resolution rests in “sitting down and talking with one another.

“The governor needs to be the lead on this,” he said.

Shekarchi pointed out that the airport is an administrative, not a legislative responsibility. With the closure of westbound traffic on the Washington Bridge on Interstate 195, Shekarci expects the governor will be tied up this week, but he may be able to talk with him next week.

“I’m deeply concerned about this,” he said.

Picozzi reiterated his support of the air cargo project Tuesday, adding he is obligated to Warwick residents to ensure it has as little impact as possible. He points out that RIAC has verbally agreed to addressing the concerns raised by the city and in particular providing a means for air cargo trucks to access the Airport Connector.

That being the case, he suggests, “they sign the damn agreement.” He offered to meet RIAC officials, even if it means traveling to East Providence and a long drive home because of the closed bridge.

A statement released by RIAC accompanying the audit reads in part: that the routine FAA audit “found that RIAC’s annual payments of $500,000 to Warwick did not comply with the federal regulations. RIAC must comply with these regulations. While RIAC must cease these payments, we estimate that in FY 2023 Warwick is the beneficiary of $5.58M because of airport operations.”  In addition to the $500,000 they list, $801,182 in property taxes for Garage C, $910,462  in airport parking surcharges, $742,000 in airport impact state aid, $1,488,066 from hotel tax redistribution from the state and $825,594 in sales tax and customer facility charges, in addition to smaller amounts paid to the city.