CHAPTER 241

AN ACT to amend the Code of Virginia by adding in Title 5 a chapter num-
bered 6, containing sections numbered 5-47 through 5-61, to create the
Virginia Airports Authority and prescribe its powers and duties in
connection with airports and air navigation facilities; to confer on
the Authority the power of eminent domain, with certain restrictions;
to authorize the Authority to borrow money and issue evidence of
indebtedness; to authorize the Authority to enter into certain con-
tracts with respect to its airports and facilities; to authorize the
acceptance, receipt and disbursement of funds by the Authority; to
provide the conditions for certain exemptions from taxation; to pro-
vide for joint operation of airports with other political subdivisions
or agencies of this or other states or the United States in certain
cases; to provide for certain agreements; and to permit the creation of
local airport authorities and prescribe their powers and duties. .

4j

Approved March 8, 1958

Be it enacted by the General Assembly of Virginia:
That Title 5 of the Code of Virginia be amended by adding a chapter
ibered 6, containing §§ 5-47 through 5-61, as follows:

Chapter 6.

§ 5-47. The following words or terms whenever used or referred to in
chapter, shall have the following respective meanings unless a different
ning clearly appears from the context:

(a) “Airport” shall mean any area of land or water which is used,
ntended for use, for the landing and take-off of aircraft, and any
urtenant areas which are used, or intended for use, for airport build-
; or other airport facilities or rights-of-way, easements and together
1 all airport buildings and facilities located thereon.

(b) “Air navigation facility’ shall mean any airport ground or air
igation facility—other than one owned and operated by the United
es—used in, available for use in, or designed for use in aid of air
igation, including any structures, buildings, mechanisms, lights, bea-
3, markers, communicating systems, or other instrumentalities, or de-
s, and any combination of any or all of such facilities, used or useful
n aid, or constituting an advantage or convenience, to the safe taking-
navigation, and landing of aircraft, in the safe and efficient operation
1aintenance of an airport, in the safe, efficient and convenient handling
rocessing of aviation passengers, mail or cargo, or in the servicing
naintenance of aircraft or ground equipment.

(ec) “Airport hazard” shall mean any structure, object or natural
wth, or use of land which obstructs the airspace required for the flight
ircraft in landing or taking-off at an airport or is otherwise hazardous
uch landing or taking-off of aircraft.

(d) “Person” means an individual, firm, partnership, corporation,
pany, association, joint stock association, or body politic; and includes
trustee, receiver, assignee, or other similar representative thereof.

§ 5-48. (a) There is hereby created as a political subdivision of the
e a public body corporate and politic to be known as the Virginia
ports Authority, the governing body of which shall consist of: (1)
persons who shall as far as practicable be from different areas of the
e, appointed by the Governor initially for terms of one, two, three,
r and five years, respectively, and thereafter for terms of five years,
spt that appointments to fill vacancies shall be for the unexpired terms;

a member of the State Corporation Commission, designated by the
umission.

(b) Whenever the Authority shall acquire ownership or jurisdiction
r an airport or airports previously operated by an agency of the United
States, there may be a member appointed to the Authority by the President
of the United States. Such member shall have the powers and duties of
other members of the Authority only with respect to the airport or air-
ports so acquired. .

(c) There may be a member of the Authority from any county or city
wherein the Authority acquires or constructs an airport, to be elected by
the governing body of the county or city and to serve at its pleasure;
provided, that such member shall have the powers and duties of other
members of the Authority only with respect to such airport; provided
further that if the Authority acquires an airport which was constructed
by one political subdivision but is located in another, the political sub-
division which constructed the airport, rather than the political subdivision
in which it is located, shall be represented on the Authority.

(d) Members of the Authority shall receive from revenues of the
Authority, the sum of twenty dollars as compensation for their services
for each day spent in the performance of their duties, and shall be entitled
to be reimbursed for their necessary expenses incurred therein.

(e) There shall be elected a chairman and vice-chairman from among
the members of the Authority. The Authority may employ such officers,
agents, and employees, permanent and temporary, as it may require, and
shall determine their qualifications, duties, and compensation. The Au-
thority may delegate to one or more of its agents or employees such powers
and duties as it may deem proper.

(f) Members of the Authority may be removed from office in the
2 oad provided in Article 3 of Chapter 16 of Title 15 of the Code of

irginia.

§ 5-49. The Authority shall have all the powers necessary or con-
venient to carry out the purposes of this act including, but not limited to,
the power

_ (a) To sue and be sued; to have a seal; and to have perpetual succes-
sion;

(b) To execute such contracts and other instruments and take such
pet action as may be necessary or convenient to carry out the purposes
of this act;

(c) To plan, establish, develop, construct, enlarge, improve, maintain,
equip, operate, regulate, and protect airports and air navigation facilities,
within this State and within any adjoining state, including the acquisition,
construction, installation, equipment, maintenance, and operation at such
airports of buildings and other facilities for the servicing of aircraft or
for the comfort and accommodation of air travelers, and the purchase and
sale of supplies, goods, and commodities as an incident to the operation of
its airport properties. For such purposes the Authority may, by purchase,
gift, devise, lease, condemnation or otherwise, acquire property, real or
personal, or any interest therein, including easements in airports hazards
or land outside the boundaries of an airport or airport site, as are neces-
sary to permit the removal, elimination, obstruction-marking, or obstruc-
tion-lighting of airport hazards or to prevent the establishment of airport
hazards, or for the enlargement of an airport constructed or acquired
under this subsection (c), provided, however, such power of eminent
domain shall not extend to the taking of any radio or television towers
or installation in existence on the effective date of this act.

(d) To acquire, by purchase, gift, devise, lease, existing airports and
air navigation facilities.

(e) To establish or acquire and maintain airports in, over, and upon
any public waters of this State or any submerged lands under such public
waters; and to construct and maintain terminal buildings, landing floats,
causeways, roadways, and bridges for approaches to or connecting with any
such airport, and landing floats and break-waters for the protection thereof.
The State hereby consents to the use of all lands owned by it, including
lands lying under water, which are deemed by the Authority to be neces-
sary for the construction, establishment, improvement, extension, enlarge-
ment or operation of any airport project.

(f) To construct, or permit the construction of, for sale or lease, on
such terms and conditions as the Authority may deem proper, industrial,
commercial or recreational facilities and approaches thereto and appurte-
nances thereof, on any lands of the Authority not acquired by eminent
domain and not needed for operational use of an airport owned or operated
by it; provided, that any such factory or manufacturing facility shall be
so constructed as not to constitute an airport hazard. In the exercise of
the powers conferred by this paragraph, the Authority shall comply with
any applicable zoning restrictions of the political subdivision in which
any airport or facility is, or is proposed to be located.

§ 5-50. The Authority is hereby vested with the power of eminent
domain and may exercise the same for the purposes set forth in paragraph
(c) of § 5-49 in the manner and to the extent permitted to railroads by
Title 25 of the Code of Virginia, provided, however, such power of emi-
nent domain shall not extend to the taking of any radio or television
towers or installation in existence on the effective date of this act. If the
owner, lessee or occupier of any property to be condemned or otherwise ac-
quired shall refuse to remove his property therefrom or give up possession
thereof, the Authority may proceed to obtain possession in any manner
provided by law. The authorized agents and employees may enter upon
any lands, waters, and premises in the State for the purpose of making
surveys, soundings, drillings and examinations as they may deem neces-
sary or convenient for the purposes of this chapter, and such entry shall
not be deemed a trespass, nor shall an entry for such purpose be deemed
an entry under any condemnation proceedings which may be then pend-
ing. The Authority shall make reimbursement for any actual damage
resulting to such Jands, waters and premises as a result of such activities.

§ 5-51. Except as may be limited by the terms and conditions of any
grant, loan, or agreement authorized by § 5-55 the Authority may, by sale,
lease, or otherwise, dispose of any airport, air navigation facility or other
property, or portion thereof or interest therein, acquired pursuant to this
chapter. Such disposal by sale, lease, or otherwise, shall be in accordance
with the laws of this State governing the disposition of other public prop-
erty, except that in the case of disposal to another authority, a municipality
or an agency of the State or Federal government for use and operation as
a public airport, the sale, lease, or other disposal may be effected in such
manner and upon such terms as the commissioners of the Authority may
deem in the best interest of aviation.

§ 5-52. The Authority is hereby authorized to provide for the issu-
ance, at one time or from time to time, of revenue bonds of the Authority
for the purpose of paying all or any part of the cost of any one or more
airport projects or of any portion or portions thereof. The principal of
and the interest on such bonds shall be payable solely from the funds pro-
vided in this Chapter for such payment. Any bonds of the Authority
issued pursuant to this Chapter shall not constitute a debt of the State, or
any political subdivision thereof other than the Authority, and shall so
state on their face. Neither the commissioners of the Authority nor any
person executing such bonds shall be liable personally thereon by reason
of the issuance thereof. The bonds of each issue shall be dated, shall bear
interest at such rate or rates not exceeding six per centum per annum,
shall mature at such time or times not exceeding forty years from their date
or dates, as may be determined by the Authority, and may be made re-
deemable before maturity, at the option of the Authority, at such price
or prices and under such terms and conditions as may be fixed by the
Authority prior to the issuance of the bonds. The Authority shall deter-
mine the form and the manner of execution of the bonds, including any
interest coupons to be attached thereto, and shall fix the denomination or
denominations of the bonds and the place or places of payment of principal
and interest, which may be at any bank or trust company within or with-
out the State. In case any officer whose signature or a facsimile of whose
signature shall appear on any bonds or coupons shall cease to be such
officer before the delivery of such bonds, such signature or such facsimile
shall nevertheless be valid and sufficient for all purposes the same as if he
had remained in office until such delivery. The bonds may be issued in
coupon or in registered form or both, as the Authority may determine, and
provision may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest, for the recon-
version into coupon bonds of any bonds registered as to both principal
and interest, and for the interchange of registered and coupon bonds. The
Authority may sell such bonds in such manner, either at public or private
sale, and for such price as it may determine will best effect the purposes
of this chapter, but no such sale shall be made at a price so low as to re-
quire the payment of interest on the money received therefor at more than
six per centum per annum computed with relation to the absolute matur-
ity of the bonds in accordance with standard tables of bond values, ex-
cluding, however, from such computations the amount of any premium
to be paid on redemption of any bonds prior to maturity.

The proceeds of the bonds of each issue shall be used solely for the
payment of the cost of the airport project or projects for which such bonds
shall have been issued, and shall be disbursed in such manner and under
such restrictions, if any, as the Authority may provide in the resolution
authorizing the issuance of such bonds or in the trust agreement here-
inafter mentioned securing the same. If the proceeds of the bonds of any
issue, by error of estimates or otherwise, shall be less than such cost, ad-
ditional bonds may in like manner be issued to provide the amount of such
deficit, and, unless otherwise provided in the resolution authorizing the
issuance of such bonds or in the trust agreement securing the same, shall
be deemed to be of the same issue and shall be entitled to payment from
the same fund without preference or priority of the bonds first issued. If
the proceeds of the bonds of any issue shall exceed such cost, the surplus
shall be deposited to the credit of the sinking fund for such bonds, or may
be applied to the payment of the cost of any additional airport project or
projects.

Prior to the preparation of definitive bonds, the Authority may, under
like restrictions, issue interim receipts or temporary bonds, with or with-
out coupons, exchangeable for definitive bonds when such bonds shall have
been executed and are available for delivery. The Authority may also
provide for the replacement of any bonds which shall become mutilated or
shall be destroyed or lost. Bonds may be issued under the provisions of
this chapter without obtaining the consent of any department, division,
commission, board, bureau or agency of the State, and without any other
proceedings or the happening of any other conditions or things than those
proceedings, conditions or things which are specifically required by this
chapter.

§ 5-52.1. In the discretion of the Authority any bonds issued under
the provisions of this chapter may be secured by a trust agreement by
and between the Authority and a corporate trustee, which may be any
trust company or bank having the powers of a trust company within or
without the State. Such trust agreement or the resolution providing for
the issuance of such bonds may pledge or assign the revenues to be re-
ceived, but shall not convey or mortgage any airport project or any part
thereof. Such trust agreement or resolution providing for the issuance
of such bonds may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and pro-
per and not in violation of law, including covenants setting forth the duties
of the Authority in relation to the acquisition of property and the ac-
quisition, construction, establishment, improvement, extension, enlarge-
ment, equipment, maintenance, repair, operation and insurance of the air-
port project or projects in connection with which such bonds shall have
been authorized, the rates and fees to be charged, the custody, safeguarding
and application of all moneys, and conditions or limitations with respect to
the issuance of additional bonds. It shall be lawful for any bank or trust
company incorporated under the laws of the State which may act as de-
positary of the proceeds of bonds or of revenues to furnish such indemnify-
ing bonds or to pledge such securities as may be required by the Author-
ity. Any such trust agreement may set forth the rights and remedies of
the bondholders and of the trustee, and may restrict the individual right
of action by bondholders. In addition to the foregoing, any such trust
agreement or resolution may contain such other provisions as the Author-
ity may deem reasonable and proper for the security of the bondholders.
All expenses incurred in carrying out the provisions of such trust agree-
ment or resolution may be treated as a part of the cost of the operation of
the airport project or projects.

§ 5-52.2. The Authority is hereby authorized to fix, revise, charge
and collect rates, fees and other charges for the use of or for the services
and facilities furnished by each airport project and the different parts
thereof, and to contract with any person, partnership, association or cor-
poration desiring the use of any part thereof, and to fix the terms, con-
ditions, rents and rates of charges for such use. Such rates, fees and other
charges shall be so fixed and adjusted so that the revenues of the Author-
ity, together with any other available funds, will be sufficient at all times
to pay (a) the cost of maintaining, repairing and operating such airport
project or projects and (b) the principal of and the interest on such bonds
as the same shall become due and payable, and to create reserves for such
purposes. Such rates, fees and other charges shall not be subject to super-
vision or regulation by any other commission, board, bureau or agency
of the State. The revenues derived from the airport project or projects
in connection with which the bonds shall have been issued, except such
part thereof as may be necessary to pay such cost of maintenance, repair
and operation and to provide such reserves therefor as may be provided
for in the resolution authorizing the issuance of such bonds or in the trust
agreement securing the same, shall be set aside at such regular intervals
as may be provided in such resolution or such trust agreement in a sinking
fund which is hereby pledged to, and charged with, the payment of the
principal of and the interest on such bonds as the same shall become due,
and the redemption price or the purchase price of bonds retired by call or
purchase as therein provided. Such pledge shall be valid and binding from
the time when the pledge is made; the revenues or other moneys so pledged
and thereafter received by the Authority shall immediately be subject to
the lien of such pledge without any physical delivery thereof or further act,
and the lien of any such pledge shall be valid and binding as against all
parties having claims of any kind in tort, contract or otherwise against
the Authority, irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust agreement by which a pledge is created
need be filed or recorded except in the records of the Authority. The use
and disposition of moneys to the credit of such sinking fund shall be sub-
ject to the provisions of the resolution authorizing the issuance of such
bonds or of such trust agreement. Except as may otherwise be provided
in such resolution or such trust agreement, such sinking fund shall be a
fund for all such bonds without distinction or priority of one over another.

§ 5-52.3. All moneys received pursuant to the authority of this chap-
ter, whether as proceeds from the sale of bonds or as revenues, shall be
deemed to be trust funds to be held and applied solely as provided in this
chapter. The resolution authorizing the bonds of any issue or the trust
agreement securing such bonds shall provide that any officer with whom,
or any bank or trust company with which, such moneys shall be deposited
shall act as trustee of such moneys and shall hold and apply the same for
the purposes hereof, subject to such regulations as this chapter and such
resolution or trust agreement may provide.

§ 5-52.4. Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and the trustee under
any trust agreement, except to the extent the rights herein given may be
restricted by such trust agreement or the resolution authorizing the issu-
ance of such bonds, may, either at law or in equity, by suit, action, man-
damus or other proceeding, protect and enforce any and all rights under
the laws of the State or granted hereunder or under such trust agreement
or resolution, and may enforce and compel the performance of all duties
required by this chapter or by such trust agreement or resolution to be
performed by the Authority or by any officer thereof, including the fixing,
charging and collecting of rates, fees and other charges.

§ 5-52.5. Bonds issued by the Authority under the provisions of this
chapter are hereby made securities in which all public officers and public
bodies of the State and its political subdivisions, all insurance companies,
trust companies, banking associations, investment companies, executors,
administrators, trustees and other fiduciaries may properly and legally
invest funds, including capital in their control or belonging to them. Such
bonds are hereby made securities which may properly and legally be de-
posited with and received by any state or municipal officer or any agency
or political subdivision of the State for any purpose for which the deposit
af ROnRE or obligations of the State is now or may hereafter be authorized

y law.

§ 5-52.6. The Authority is hereby authorized to provide for the issu-
ance of revenue refunding bonds of the Authority for the purpose of re-
funding any bonds then outstanding which shall have been issued under
the provisions of this chapter, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the date of re-
demption of such bonds, and, if deemed advisable by the Authority, for
the additional purpose of constructing improvements, extensions, or en-
largements of the airport project or projects in connection with which the
bonds to be refunded shall have been issued. The Authority is further
authorized to provide by resolution for the issuance of its revenue bonds
for the combined purpose of (a) refunding any bonds then outstanding
which shall have been issued under the provisions of this Chapter, includ-
ing the payment of any redemption premium thereon and any interest ac-
crued or to accrue to the date of redemption of such bonds, and (b) paying
all or any part of the cost of any additional airport project or projects or
of any portion or portions thereof. The issuance of such bonds, the matur-
ities and other details thereof, the rights of the holders thereof, and the
rights, duties and obligations of the Authority in respect of the same shall
be governed by the provisions of this chapter in so far as the same may
be applicable.

§ 5-53. In connection with the operation of an airport or air naviga-
tion facility owned or controlled by the Authority, the Authority may enter
into contracts, leases, and other arrangements with any person or persons
(1) granting the privilege of using or improving the airport or air navi-
gation facility or any portion or facility thereof or space therein consis-
tent with the purposes of this chapter; (2) conferring the privilege of
supplying goods, commodities, things, services, or facilities at the airport
or air navigation facility; and (3) making available services to be furn-
ished by the Authority or its agents at the airport or air navigation facility.

In each case the Authority may establish the terms and conditions and
fix the charges, rentals, or fees for the privilege or service, which shall be
reasonable and uniform for the same class of privilege or service at each
airport and shall be established with due regard to the property and im-
provements used and the expenses of operation to the Authority; provided
that in no case shall the public be deprived of its rightful, equal, and uni-
pone ye of the airport, air navigation facility, or portion or facility

ereof.

(b) Except as may be limited by the terms and conditions of any
grant, loan, or agreement authorized by § 5-55 the Authority may by con-
tract, lease, or other arrangements, upon a consideration fixed by it, grant
to any qualified person, for a term not to exceed thirty years, the privilege
of operating, as agent of the Authority or otherwise, any airport owned
or controlled by the Authority; provided that no person shall be granted
any authority to operate an airport other than as a public airport or to
enter into any contracts, leases, or other arrangements in connection with
the operation of the airport which the Authority might not have under-
taken under subsection (a) of this section.

§ 5-54. The Authority is authorized to adopt, amend, and repeal such
reasonable resolutions, rules, regulations, and orders as it shall deem neces-
sary for the management, government, and use of any airport or air
navigation facility owned by it or under its control. No rule, regulation,
order, or standard prescribed by the Authority shall be inconsistent with,
or contrary to, any law of this State or act of the Congress of the United
States or any regulation promulgated or standard established pursuant
thereto concerning such airport or the operation of aircraft. The Authority
shall keep on file at the principal office of the Authority for public inspection
a copy of all its rules and regulations.

§ 5-55. The Authority is authorized to accept, receive, receipt for,
disburse, and expend Federal and State moneys and other moneys, public
or private, made available by grant or loan or both, to accomplish, in whole
or in part, any of the purposes of this act. All Federal moneys accepted
under this section shall be accepted and expended by the Authority upon
such terms and conditions as are prescribed by the United States and as
are consistent with State law; and all State moneys accepted under this
section shall be accepted and expended by the Authority upon such terms
and conditions as are prescribed by the State.

§ 5-56. The exercise of the powers granted by this chapter will be
in all respects for the benefit of the people of the State, for the increase of
their commerce and prosperity, and for the improvement of their health
and living conditions, and as the operation and maintenance of airport
projects by the Authority will constitute the performance of essential
governmental functions, the Authority shall not be required to pay any
taxes or assessments upon any airport project or any property acquired
or used by the Authority under the provisions of this chapter or upon the
income therefrom, and any bonds issued under the provisions of this
chapter, their transfer and the income therefrom (including any profit
made on the sale thereof) shall at all times be free from taxation within
the State; provided that the exemption hereby granted shall not be con-
strued to extend to persons conducting on the premises of an airport busi-
nesses for which local or State taxes would otherwise be required. When
the bonds or other obligations of the Authority issued in connection with
the acquisition, construction or improvement of an airport or air navi-
gation facility have been paid off, or at an earlier date if the Authority
deems it financially feasible, the Authority shall enter into negotiations
with the governing body of the political subdivision in which such airport
or facility is located and may agree with such governing body on sums to
be paid to the county or city in lieu of taxes. In case of disagreement as
to the value of the property an appeal shall lie to the State Corporation
Commission whose determination of the value of such property and the
ratio of assessed to true values of property in such political subdivision
shall be final.

§ 5-57. The Authority may, to the extent permitted by law, enter into
agreements with agencies or authorities in this State or from adjoining
states or with an agency or authority of the United States for joint action
pursuant to the provisions of this chapter. Each such agreement shall
specify its duration, the proportionate interest which each participating
authority or agency shall have in the property, facilities and privileges of
the joint undertaking; the apportionment of the costs of the undertaking
among the participating authorities or agencies; the disposition of all prop-
erty, facilities and privileges jointly owned upon termination of such
agreement or any renewal thereof; the payment or assumption of any
indebtedness arising out of such joint operation which remains unpaid
upon the disposal of all assets or upon the termination of the agreement or
any renewal thereof; and such other provisions as may be necessary to
insure efficient operation of the joint undertaking.

§ 5-58. The agreement shall specify the composition of the governing
body of the joint agency or authority created under § 5-57; provided, how-
ever, that the membership thereof from this State shall be the same as
the membership of the authority created by § 5-48. Each joint Authority
shall select officers for such terms as are fixed by the agreement and shall
have the power to employ such agents and employees as it may require and
as are reasonably necessary in carrying out the purposes of this act.
Subject to the limitations and restrictions hereinafter set forth such joint
authority shall have all powers set forth in § 5-49.

§ 5-59. Eminent domain proceedings shall not be instituted by any
joint authority except by majority vote of each component agency or au-
thority of such joint authority. If so instituted, any property or rights
acquired thereunder shall be held by such agencies or authorities jointly,
according to the terms of the agreement creating the joint authority.

§ 5-60. The joint authority shall not dispose of any airport, airport
navigational facility or real property under its jurisdiction except by
majority vote of each component agency or authority of such joint au-
thority, provided, however, that this restriction shall not be construed to
apply to any disposition of property contemplated or permitted by § 5-49.

§ 5-61. Whenever the Authority shall acquire ownership and juris-
diction over any airport or airports previously operated by an agency of
the United States, the Authority is hereby authorized to enter into an
agreement with such agency of the United States, as a condition of the
acquisition of the airport, for the provision, necessary and appropriate use,
maintenance and operation of such airport facilities as may be required
by the United States or any specified agency or agencies thereof.