U.S Department
of Transportation
Federal Aviation
Administration

Western-Pacific Region
Airports District Office

300 Ala Moana Blvd., Rm. 7-128
Honolulu, HI 96850
Mail: 50244
Honolulu, HI Box 96850-0001
Telephone: (808) 312-6028
Facsimile: (808) 312-6048

January 24, 2020
Mr. Ross M. Higashi
Deputy Director-Airports
State of Hawaii, Airports Division
400 Rodgers Blvd., Suite 700
Honolulu, Hawaii 96819-1880
Dear Mr. Higashi:
This letter is a follow-up to our recent conversations about the Dillingham Airfield (HDH)
located in Mokuleia, Hawaii. The State of Hawaii Department of Transportation (HDOT)
currently operates HDH pursuant to a lease agreement with the United States Army (Army)
dated September 16, 2008. The initial term of the lease was 25 years, ending in September,
2033, however, the term of the lease was later changed to 5 year increments through a series
of Supplemental Agreements. The term of Supplemental Agreement No. 4, dated April 23,
2019, ends on July 5, 2024. However, the lease provides that HDOT, as Lessee, may
terminate the lease at any time with a 30-day notice. It is our understanding that HDOT is
considering whether to exercise its option to terminate the lease prior to 2024.
The Federal Aviation Administration (FAA) provided Airport Improvement Program (AIP)
funding in 2003 and 2005 to extend the taxiway at HDH. We made that investment
expecting a minimum useful life of 20 years under the initial lease agreement that was set to
expire in 2033. Therefore, the HDOT is obligated to ensure that those improvements and the
airport is available for civilian use at least through 2025 in order to comply with its federal
obligations. We strongly encourage HDOT and the Army to reach an agreement for the
continued operation and civilian use of HDH.
HDH is an important asset to the National Airspace System. It serves General Aviation
aeronautical activities including glider and ultralight aircraft operations as well as parachute
jumping. These aeronautical activities are not currently conducted at any other airports on
the Island of O’ahu. There are 47 civilian based aircraft and over 36,000 civilian aircraft
operations annually at HDH. It is unclear at this time, if the Army would continue to allow
civilian aeronautical activities at HDH if HDOT terminates its lease. If HDH does not
remain open for these activities, HDOT must consider how these aeronautical activities will
be accommodated within its airport system, consistent with its federal obligations. Grant
Assurance 22, Economic Nondiscrimination, requires HDOT to “make the airport [or in this
case its airport system] available…for public use…without unjust discrimination to all types,
kinds, and classes of aeronautical activity...”

 The current lease agreement provides for the “joint-use” of HDH and the airport is listed as a
joint-use facility in FAA records. We understand that the Army currently owns the airport
and uses HDH for training purposes. HDOT leases, maintains, and operates the entire
airfield, including the runway and taxiway system. This is different from a typical joint-use
operation. Normally, a joint-use airport is one at which an airport’s runway and taxiway
system are owned, maintained and operated by the federal government and there is an
agreement for the civilian use of certain airport facilities, including runway and taxiway
systems. HDOT and the Army should consider a more traditional “joint-use” agreement
wherein the Army is responsible for the maintenance and operation of the airfield and HDOT
and its civilian sublessees operate the civilian facilities and have access and use of the
federally owned and operated runway and taxiway system.
As an alternative, HDOT and the Army could consider the transfer of real property interest in
HDH from the Federal government to HDOT for airport purposes. If real property interest
was deeded to HDOT, the Army could reserve the right to use the airport for training and to
reclaim the airport for National Emergency Use.
Any discussions between HDOT and the Army regarding the lease and operation of HDH
should also address the maintenance and operation of the water well and associated water
distribution system.
The FAA has two primary concerns about the water well and the associated water
distribution system. First, the maintenance and operation of a water well and associated
distribution system for off-airport users is not an appropriate use of airport revenue. This
includes the use of airport revenue funded staffing and other resources. The water well is not
directly and substantially related to air transportation and it does not meet the community use
criteria set forth in the FAA’s Policy and Procedures Concerning the Use of Airport
Revenue, (64 FR 7696, February 16, 1999). Any costs and liabilities associated with a water
well and distribution system serving off airport customers must not be borne by airport users.
Second, any agreement between the Army and HDOT for the maintenance and operation of
the water well and associated distribution system should be contained in a separate
agreement from the overall airport maintenance and operation. Consideration should be
given to engage the State Board of Water Supply or other similar entity to operate the well
and distribution system. If the Army retains ownership of HDH, then the Army should
contract directly with the Board of Water Supply. Similarly, if ownership of HDH is
transferred to HDOT for airport purposes, then HDOT should also engage the State Board of
Water Supply to operate and maintain the well and distribution system along with associated
easements.
If you have any questions concerning this matter, please contact me at 808-312-6027.

Gordon K. Wong
Airports District Office Manager