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Ken in the News

House Approves Bill To Expedite Transfer Of Ontario Airport

July 11, 2016

CBS – Los Angeles

 

The House approved a bill Monday to expedite the transfer of Ontario International Airport from Los Angeles World Airports to the Ontario International Airport Authority.

 

“With the passage of this bill today, we are one step closer to restoring local control of Ontario Airport,” said Rep. Ken Calvert, R-Corona. “I’m looking forward to the Senate approving the bill and having it signed into law by the end of the week. The Inland Empire is ready, willing and more than able to shape its own aviation future.”

 

Under the transfer agreement contained in the House bill, LAWA will be entitled to $120 million in ONT passenger facilities charges over the next decade. Ontario will have five years to make the first $50 million in PFC distributions, according to the legislation.

 

In December, Los Angeles reached a tentative deal with Ontario over transferring ownership rights to the latter in order to end a court battle that began in June 2013. A lawsuit alleged breach of fiduciary duty and other contract violations by LAWA, which has overseen Ontario International since 1985 and has been a stakeholder since 1967.

 

The Set Ontario Free campaign claimed LAWA intentionally neglected the airport, allowing business to slide for the benefit of Los Angeles International Airport.

 

LA officials countered that nearly $500 million had been invested for upgrades and modifications at Ontario over several decades, and blamed regional factors for the economic decline.

 

Under the agreement reached in December, LAWA will gradually relinquish all supervision of the airfield before the end of this year. In turn, Ontario will pay L.A., as well as assume all of the airport’s debts. The deal is valued at roughly $250 million.

 

A Riverside County Superior Court judge is monitoring the transfer as part of the out-of-court settlement.

design by Mat Masoni for Inksaint and Apolit.

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