By JOSE HERRERA | City News Service
Some San Fernando Valley residents who live near the Van Nuys Airport renewed their calls on Thursday, Nov. 21, for elected officials to deny a proposed lease and plan to expand hangars, which they say may further harm their communities.
The Los Angeles Board of Airport Commissioners, which governs Los Angeles World Airports, recently recommended approval of a lease sought by Bonseph Helinet, LCC. The matter is set to come before the City Council’s Trade, Travel and Tourism Committee in December.
Dannielle Sweet, a 29-year resident of Lake Balboa and soon-to-be 61 year-old, told City News Service that she’s worried about the lease.
“It was already discussed by the City Council and rejected, so for it to have come back up again and have pressure put on the City Council by one or two people, including the Board of Airport Commissioners, is extremely difficult to understand.,” Sweet told CNS.
In response to a request for comment, a representative for LAWA said they were unable to provide an interview or additional comments at the time.
Sweet said the VNY has “too much airport business” for it being so small with the operation of private, charter jets and helicopters used by fire, news, police among other aircrafts.
“In the past 29 years, I went from being an asthmatic on one inhaler, to now being on five different medications and being diagnosed with COPD (chronic obstructive pulmonary disease),” Sweet told CNS.
Earlier this year, the City Council denied a proposed lease for 4.22 acres of land and 17,253 square feet of office and hangar space, located at 16231 Waterman Drive.
As part of an effort to settle a lawsuit filed by Bonseph Helinet and a Federal Aviation Association complaint, the airport commissioners recommended the lease be approved in closed session.
After the board’s action on Nov. 7, LAWA issued the following statement: “The lease with Helinet was unanimously approved by the commissioners after hearing the management report that outlined the request for proposal process and community benefits entailed within. The lease goes to City Council for approval.”
“The City Attorney reviewed the RFP and opined that LAWA followed all applicable city laws and charter requirements,” the statement said.
Meanwhile, the Van Nuys Airport Citizens Advisory Council — established in 1985 to review issues affecting the operation of VNY for the city — made a recommendation to reject the lease, citing concerns that LAWA’s bidding process was “noncompetitive,” meaning other bidders did not have an equal opportunity to secure the contract.
A jet comes in for a landing at Van Nuys Airport (Photo by Gene Blevins, Contributing Photographer)
The lease would initially cover five years, for up to 25 years. The group — composed of Helinet Aviation Services, the Castagna 1998 Trust and Bonseph Holdings Van Nuys Inc. — would receive an opportunity to secure entitlements for redevelopment of the facilities.
Bonseph Holdings Limited, a foreign stock company based in Ontario, Canada, has majority ownership of Bonseph Helinet, according to court documents.
The proposed $26 million project would bring online two new 30,000-square-foot hangars, 15,000 square feet of terminal/shop space, 72,000 square feet of renovated ramp areas, among other improvements.
Bonseph Helinet filed a Los Angeles County Superior Court lawsuit, which alleged the City Council failed to take action on the item within a certain period of time, and overstepped its authority over LAWA, a proprietary department overseeing LAX and VNY.
The Van Nuys Airport Association, an organization composed of tenants at VNY, filed an informal complaint with the FAA, which alleged the city violated the agency’s Grant Assurances.
When airports such as VNY accept FAA funds, they must agree to certain obligations or assurances, and cannot restrict aeronautical use of its site, among other regulations.
Curt Castagna, a partner of Bonseph Helinet, serves as the 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, attorney representing Bonseph Helinet, declined to comment citing pending litigation.
If the complaint is sustained, the FAA could potentially withhold federal funding from LAWA, until corrective action is taken, specifically to expedite the reconsideration of the lease and a commitment not to delay any proposed development, according to a letter from FAA Director Mark McClardy.
The FAA noted its preliminary determination is subject to judicial review, in what is known as a Part 16 proceeding, and could be challenged by the city.
Neither McClardy nor a representative for the FAA responded to a CNS’ inquiry regarding the status of the complaint.
Helinet Aviation Services has stated the lease is intended to continue their life-saving work. The company provides helicopter services for charter, production, air medical and aircraft management in Los Angeles, such as the Children’s Hospital, UCLA, USC, Cedars-Sinai, UCSD and UC Riverside.
Mihran Kalaydijan, an aerospace engineer, who said he was part of a group of consultants for the project, supported plans for the modernization of facilities. He emphasized that the proposal would not “impact the health, quality of life” nor increase emissions.
While Helinet Aviation Services has said its plans would not increase charter jet operations, airports that accept federal funding cannot restrict aeronautical operations at their sites.
Opponents of Bonseph Helinet’s lease claim the lawsuit and FAA complaint have no merit and are being used to pressure elected officials into approving the lease.
Ivor Pine, a spokesman for the City Attorney’s Office, declined to comment, citing pending legal matters.
According to documents made available under the California Public Records Act, the City Attorney’s Office submitted a response to the FAA, which in part, concurred that the City Council found LAWA’s RFP as “insufficiently competitive” under the City Charter, but at the same time did not outright refute the complaint.
Concerns about LAWA’s RFP stem from complaints raised by the master lease holder, Air Center Aviation, and another bidder, according to public records.
Representatives for Air Center Aviation protested the bid, alleging LAWA and Bonseph Helinet “conspired” to eliminate them as the master tenant, public records showed. The company also alleged LAWA imposed restrictive language in the RFP to accommodate current tenants.
Brian Cochran, CEO for Pegasus, which develops airport terminals and operates air cargo warehouses, shared similar complaints with LAWA, adding that Bonseph Helinet refused to cooperate, and in turn, limited potential bidders from submitting a proposal.
Air Center Aviation also alleged LAWA officials and Bonseph Helinet had been working on a proposal since 2018, prior to the release of the RFP in 2021.
The RFP opened in July 2021 and it was extended with the restrictive language removed after the fourth amendment in September 2022. BOAC formally awarded the lease to Bonseph Helinet in December 2022.
While representatives for LAWA and Bonseph Helinet declined to comment on these issues, the two entities maintain the RFP was fair under the City Charter.
“On October 21, 2021, LAWA received a proposal from Bonseph Helinet,” according to a BOAC report from Nov. 7. “The proposal was reviewed by a three-member evaluation panel which found that Bonseph Helinet, LCC is responsive and responsible, that entering into this lease is in the city’s best interest.”
“The City Attorney determined the RFP process used complied with the requirements of Administrative Code Section 10.17 and all other applicable regulations and law, and is compatible with the city’s interests,” the report concluded.
Since 1972, Air Center Aviation has held the master lease — adding Helinet Aviation Services as a subtenant in 2013 at the request of LAWA. Air Center Aviation and LAWA officials had been working on a potential 30-year lease dating back to 2003, according to public records.
In 2018, LAWA ultimately sought a new tenant, citing regulations under the City Charter limiting airport leases to a maximum of 50 years.
There are examples of other companies with leases of more than 50 years, such as Aerolease Association and Clay Lacy Aviation, according to city records.
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If the City Council rejects the Bonseph Helinet lease, both companies are permitted to operate at the site on a month-to-month lease, according to city officials.
City Council approved a motion introduced by Councilwoman Imelda Padilla, whose 6th District encompasses VNY and San Fernando Valley neighborhoods, to develop a specific plan for the airport with a newly formed citizen advisory committee.
Padilla has opposed the Bonseph Helinet lease on similar grounds raised by her constituents and the Van Nuys Citizens Advisory Board. In a statement to CNS, she added: “Moving forward, I will continue advocating for reform, defending local governance from undue influence and holding all stakeholder accountable to the residents of District 6.”
“My motion seeks to establish fair RFP criteria, ensuring future decisions prioritize equity and accountability,” she added.
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