Hahn to Seek U.S. Grants for LAX

Abandoning a controversial policy that cost Los Angeles millions during the Riordan administration, Mayor James K. Hahn announced Thursday the city will seek more than $50 million in federal grants to increase security and make major improvements at Los Angeles International Airport.

Hahn directed the head of the city’s airport department to apply for “all of the outstanding airport improvement grants that have not been received.”

The Times reported last month that the city passed up or did not apply for more than $117 million in federal airport grants because of the policy of then-Mayor Richard Riordan to divert airport revenues to pay for more Los Angeles police officers. To receive the federal grants, cities cannot divert airport revenues for other uses.

For eight years, the city passed up federal funds that could have been used to tighten security in passenger terminals, soundproof hundreds of homes against aircraft noise, and make safety improvements to avoid near-misses between airplanes at the world’s third-busiest airport.

Hahn’s decision to change course and again seek federal grants has implications for the airport, airlines, passengers and residents who live near the airport. Federal funds are considered essential if the airport is to meet tougher security standards, upgrade, modernize and expand its aging facilities, and address safety problems on runways and taxiways.

Hahn said the federal money is badly needed to address the financial crisis and security concerns at the airport that were sparked by the Sept. 11 terrorist attacks. The steep decline in airline passenger traffic has slashed airport revenues.

Passenger traffic at LAX was down 7.5% from last January through November, as compared to the year before. In November alone, passenger traffic dropped by 25%.

And sharply higher security costs have plunged the airport into its worst financial crisis.

The pressing security costs made a change in the Riordan policy essential, Hahn said.

“We figure that $15 million has been spent by our Department of Airports on increased security costs since Sept. 11,” Hahn said. “So we’ll be asking for as much as we can get. Because the dynamics certainly have changed for the airport’s financial picture since Sept. 11, there really was no choice” but to accept the Airport Improvement Program grants.

Hahn said Congress made the grant program “the only way you can be reimbursed” for security expenses.

Today is the deadline for airports to apply for reimbursement of federally mandated security costs incurred since the hijacking of four jetliners on Sept. 11. Three of those jets were bound for Los Angeles but were commandeered for attacks on the World Trade Center and the Pentagon. The fourth jetliner crashed in Pennsylvania after an apparent struggle on board.

After the attacks, Congress passed and President Bush signed legislation tightening security at the nation’s airports, federalizing security screeners, and imposing new requirements for inspection of passengers and baggage.

Congress appropriated $175 million in supplemental airport grant funds to pay for expenses such as added police and security personnel. Though the federal money is not large enough to reimburse every airport, Hahn said, he expects Los Angeles to get a substantial amount.

Lydia Kennard, executive director of the city agency that operates LAX, said the airport will ask for $11 million from the federal fund to reimburse airports for security-related costs. About $8 million of that amount represents the cost for Los Angeles and airport police officers whose presence at LAX was significantly increased after Sept. 11.

Retroactive Funds Sought

Kennard said the policy reversal also will allow airport officials to retroactively seek three years worth of federal grants--or about $43 million. The airport agency would use the money to repay itself for the extension of one of the airport taxiways over the Sepulveda Boulevard tunnel--a project that is already complete.

The airport also would qualify for at least $12 million a year in federal grants in the future, Kennard said. The airport plans to use that money to reconfigure the airport’s aging terminals to accommodate new baggage and passenger screening equipment.

The airport agency also will consider raising the fee charged each passenger originating at the airport from $3 per ticket to $4.50 a ticket, she said. The so-called passenger facility fee could be used to help finance construction projects and security improvements.

Unlike Riordan, Hahn made clear that he is not interested in diverting revenue from LAX to pay for other city services. “I’m interested in having the airport be on financially stable ground,” he said.

He said the Airport Commission, which he appoints, will be asked to officially change the policy at an upcoming meeting.

Airline industry representatives applauded Hahn’s decision to accept federal grants. The airline industry waged a long effort in the courts and Congress to block Riordan’s efforts to transfer money from the airport to City Hall.

“This is a very, very positive step,” said Ed Merlis, senior vice president for legislative and international affairs at the Air Transport Assn. in Washington.

“This is good news,” said Alan Wayne, a United Airlines spokesman in Los Angeles. “This is the right thing for the city to do. This is good for the airport, good for our collective customers, and good for the tenants to see that every available resource is being used to improve the overall capabilities of this airport.”

Focusing on Construction

Carriers said the move will free up resources and allow the city agency that operates LAX and its tenants to focus on construction projects put on hold after the attacks.

“Either the city or the airlines’ ability to finance these types of projects is limited,” said Frank A. Clark, executive director of a nonprofit corporation that represents the 34 international carriers that operate at the Tom Bradley International Terminal. “As far as the international carriers are concerned, the Bradley [terminal] is 18 years old and it needs to be evaluated and refurbished and brought up to the current technologies.”

Clark added that Hahn’s decision to overturn his predecessor’s policy will play an important role as the mayor’s plans to modernize the airport take shape.

Deputy Mayor Matt Middlebrook said the city needs federal funds to help pay for the airport’s remodeling.

Instead of focusing on expanding the airport as Riordan did, Hahn has shifted the emphasis to making it safer. The mayor is developing a new approach that calls for building a new passenger and baggage screening facility near the San Diego Freeway. Passengers would be transported from the new complex to passenger terminals on a people-mover system.

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Times staff writer Matea Gold contributed to this report.