Jim Dunn Title: Owner and general manager, Airtel Plaza Hotel and president, Van Nuys Airport Association Most Admired Person: Wife, Christine Dunn Career Turning Point: Launching the Airtel Plaza Hotel Age: 56 Personal: Married, one son The president of the van nuys airport association leads a group of businesses threatened by an anti-noise ordinance On July 17, a lawsuit filed in November 2000 by a group of Van Nuys Airport business owners goes before a judge for the first time. Companies based at the airport hope to quash a 1997 ordinance adopted by the Los Angeles City Council that aims to phase out Stage2 aircraft, the older, noisier planes that account for roughly half of the jets based at the airport. Residents who live near the airport are pushing for formal adoption of the ordinance, which they view as a vital first step in eliminating their noise problems. Backed by local business leaders, including the Valley Industry & Commerce Association (VICA), in 1998 the airport convinced a city council subcommittee to delay the adoption of the ordinance until an outside firm could conduct a study of the economic impact of the loss of the older aircraft. That study, completed by the New Jersey-based Polaris Group in June 1998, concluded that the ordinance would affect roughly 600 jobs and cost the local economy close to $2 million per year. Two years ago, Jim Dunn, owner and general manager of the Airtel Plaza Hotel at the Van Nuys Airport, became president of the Van Nuys Airport Association, a consortium of 200-plus members, including charter plane operators, airport-based business owners, aviation repair station operators and propeller aircraft associations. As president of the association, which represents airport tenants in negotiations over fees and other issues with the facility’s landlord, the Los Angeles World Airports Association (LAWA), Dunn has found himself on the hot seat more than once. Dunn spoke to Business Journal reporter Jacqueline Fox recently about the similarities between Van Nuys and the long-fought battle over airport noise and expansion in Burbank. He also discussed the association’s accomplishments, his efforts to bring “unbiased” representation to the table to help bridge the gap between airport tenants and LAWA representatives and the facility’s plans to appease neighboring residents. Question: Can you bring us up to date on what’s happening with the adoption process of the ordinance on Stage2 aircraft? Answer: The Stage2 ordinance has gone on from the city council now, which passed it, to the courts because of a lawsuit filed to help stop it from going through. The association is not named in the lawsuit, but members of the association are. They (the plaintiffs) represent a consortium of members of the Business Aircraft Association and airport tenants. Q: What are the costs involved in bringing this to the courts and who is paying for it? A: Because the association is not named in the lawsuit, I do not have intimate knowledge of the costs so far. The association isn’t paying for it, but we support it. Q: What are the problems with reducing the older Stage2 aircraft? A: It’s been determined that the elimination of those jets would affect business dramatically. Many jobs and tenants’ businesses would be wiped out with the elimination of those aircraft. The difficulty here is trying to balance the economic engine of the Van Nuys Airport with the ongoing concerns of the neighborhood. But the airport has more than 100 businesses and 3,400 employees. And if you were to combine all of those together, we would be the fourth-largest single employer in the Valley. Q: How closely are you watching what has been happening in Burbank, where concerns over airport noise and growth have resulted in years of civic discord and costly legal battles? A: An airport is an airport is an airport, and the attitude held by the residents of Burbank is no different from those attitudes of the residents surrounding Van Nuys. Van Nuys Airport is dissimilar because we are a general aviation airport. However, we do have a substantial core of charter flight tenants and their concerns are important. While we don’t want to see this battle drag on forever, we have both the tenants’ concerns and rights to consider, as well as the concerns of the residents. So, yes, we have been watching their struggle very, very closely. Q: What is the status of the soundproofing program for homes in the area and what is the association’s involvement? A: A retrofitting program for residences in a designated area of impact is underway. That program includes additional insulation of those homes, air conditioning and special noise dampers over chimneys. The costs involved are roughly $15 million and it affects about 1,500 homes in the area. The association supports the program. It’s an attempt at mitigation. We think it’s a good idea. Q: Valley VOTE, the group leading the drive for secession, hopes to keep the airport as a municipal asset if it is successful. How realistic is the notion of transferring the airport to a new city entity, and would the association support it? A: Because (a secession vote) is some time away, it really hasn’t been a primary concern. However, there is a great level of awkwardness the association has identified between the tenants and LAWA. As a result, we have had to be in conformity with many of the administrative applications that are part of the LAWA system, which is made up of four very different airport personalities: LAX, Palmdale, Ontario and Van Nuys. So, I think (transferring ownership) is probably not a bad idea. It’s all about local control. How doable is it? An airport is such a political centerpiece in a city that you can negotiate anything. Q: What would you consider to be the primary accomplishments of the association under your leadership and how have they helped improve matters between LAWA and airport tenants? A: One of the main things the association has done with the help of some dedicated and talented members is negotiate with LAWA and the tenants over a new leasing policy. The new policy is designed to level the playing field and make rent prices more balanced among the two categories of tenants: commercial and aviation. And the tenants throughout the airport know this is their best opportunity for equal treatment when negotiating a lease with LAWA. The association is also currently working on setting minimum standards for tenants (such as building upkeep). These are being done through executive directives, this is the issue of the day and we are now in the process of working with a very enlightened LAWA representation. Q: Because your business is a hotel, has it made it easier for you to negotiate with local residents and anti-noise advocates? A: Yes, absolutely. I’m viewed as an almost neutral person in this and it’s helped me start and continue a dialogue with the community and members of LAWA. The hotel is the largest economic contributor to the airport because, not only do we pay twice the amount of rent than other tenants, we also generate about $1 million plus for the community in occupancy tax rates. So we are also a big contributor to the local economy. And, from the residents’ point of view, well, we don’t make any noise.
