The LA City Council is reconsidering the much-discussed lease at Van Nuys Airport

After returning from holiday recess, the City Council on Tuesday will reconsider a much-discussed lease for the Van Nuys airport that supporters say would bring economic growth but residents fear could cause further harm to their communities.

Bonseph Helinet LLC – comprised of Helinet Aviation Services, the Castagna 1998 Trust and Bonseph Holdings Van Nuys Inc. – is seeking a five-year lease, potentially extendable to up to 25 years, for 4.22 acres of land and 17,253 square feet of office space and office space hangar space at VNY.

If the City Council approves the lease, the group would seek entitlements to a $26 million redevelopment project at the site, including two new 30,000-square-foot hangars, 15,000 square feet of terminal/shop space and 72,000 square feet of renovated ramp areas and other improvements.

This is the second time the matter has come before the council.

In March, the City Council rejected the lease after San Fernando Valley residents who live near the airport raised environmental concerns. Council members also raised concerns about the request for proposal process, also known as an RFP.

The city council’s actions sparked a lawsuit from Bonseph Helinet, who accused the council of violating the city charter by failing to respond to the lease proposal within 30 days – and instead more than 15 months after the lease was approved by the The city’s airport authority had serviced in 2022. The company also accused the city of overstepping its authority over Los Angeles World Airports, a separate department that oversees LAX and VNY.

In addition, the Van Nuys Airport Association, an organization made up of VNY tenants, filed a complaint with the Federal Aviation Administration alleging that the city violated FAA regulations by rejecting the lease and arguing that airports such as VNYs that receive federal funding must agree to certain covenants or representations.

Curt Castagna, a partner at Bonseph Helinet, serves as president of the Van Nuys Airport Association, while Kathryn Purwin, CEO of Helinet Aviation Services, is also a member of that organization.

Castagna and Purwin could not be reached for comment. Brandon Young, an attorney for Bonseph Helinet, declined to comment, citing pending litigation.

If the FAA complaint is upheld, the agency could potentially withhold millions of dollars from LAWA. According to a letter from FAA Director Mark McClardy, the city of Los Angeles can still challenge the complaint through a judicial review, a so-called Part 16 proceeding.

According to documents provided under the California Public Records Act, the Attorney General’s Office submitted a response to the FAA that agreed in part that the City Council viewed LAWA’s RFP as “not sufficiently competitive” under the City Charter, but at the same time did so Complaint not completely refuted.

To resolve the litigation and FAA complaint, the city’s airport commissioner reconsidered the lease proposal in November and voted to approve it. The issue will now be forwarded to the city council for a final decision on Tuesday.

Some San Fernando Valley residents have spoken out against the lease, citing negative environmental and health impacts. They claim LAWA has failed to mandate environmental protection efforts at VNY to the same level as LAX.

Helinet Aviation Services has stated that the lease is intended to continue the work done from the airport for more than three decades – providing medical delivery services to Children’s Hospital Los Angeles, UCLA, USC, Cedars-Sinai, UC San Diego and UC Riverside. In addition, the company provides helicopter and aviation services related to charter, production and aircraft management in the LA area.

The company has previously said it will not increase charter aircraft operations under the lease. Bonseph Helinet argued in his lawsuit against the city that the previous tenant of the helicopter support facilities at VNY had “allowed the site to fall into disrepair,” prompting the city to begin the bidding process in 2021 to build the site “safe and modern.”

While Helinet Aviation Services can reduce its reliance on carbon-based fuel by using electric-powered helicopters or reducing its fleet, FAA regulations prohibit airports from restricting flight operations at their locations. If charter jets or other aircraft wish to use the hangers suggested by Bonseph Helinet, the company must take them into account.

The Van Nuys Airport Citizens Advisory Council – a separate body whose members are appointed by elected officials to oversee VNY – recommended rejecting the lease, citing concerns that LAWA’s original bidding process was “uncompetitive,” meaning that other bidders did not have an equivalent offer to secure the contract.

The concerns about LAWA’s RFP stem from complaints from Air Center Aviation and another bidder, according to public records.

Air Center Aviation has held the master lease for the property with VNY since 1972 and added Helinet Aviation Services as a subtenant in 2013 under the management of LAWA.

Both Air Center Aviation and Helinet Aviation Services have a month-to-month lease for the 16231 Waterman Drive location.

Documents from 2003 showed that LAWA officials and Air Center Aviation tried to negotiate a 30-year lease for the property but were unable to come to an agreement.

In 2018, LAWA was looking for a new tenant for the property and referred to a 50-year rental agreement. According to city records, there are examples of other companies with leases longer than 50 years, such as Aerolease Association and Clay Lacy Aviation.

Air Center Aviation representatives protested the RFP, which opened in July 2021, alleging that LAWA and Bonseph Helinet “conspired” to eliminate them as anchor tenants.

The company also alleged that LAWA introduced restrictive language in the RFP to require accommodation of current tenants and said the RFP was extended with the restrictive language removed following the Fourth Amendment in September 2022. But two months later, BOAC voted to recommend a five-year lease to Bonseph Helinet – and it was that lease that the council rejected in March.

Brian Cochran, CEO of Pegasus, a company that develops airport terminals and operates air cargo warehouses, shared similar complaints with LAWA, claiming that Bonseph Helinet refused to cooperate and thereby prevented potential bidders from submitting a proposal.

Representatives from LAWA and Bonseph Helinet declined to comment on the issues, and the two companies claimed the tender complied with city regulations.

“On October 21, 2021, LAWA received a proposal from Bonseph Helinet,” a November 7 BOAC report said. “The proposal was reviewed by a three-member evaluation panel, which concluded that Bonseph Helinet, LCC is responsive and responsible. that entering into this lease is in the best interest of the city.”

“The Attorney General determined that the RFP process used complied with the requirements of Section 10.17 of the Administrative Code and all other applicable regulations and laws and was consistent with the interests of the City,” the report concluded.

The LA City Council is reconsidering the much-discussed lease at Van Nuys Airport

ByAmelia Journalton

By Amelia Journalton

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