A U.S. Senate committee chairman has called for the Federal Aviation Administration to review millions of dollars in federal grants to Denver International Airport after the city rejected a contract with an aviation company that works with U.S. Immigration and Customs Enforcement.
In to Denver Mayor Mike Johnston dated March 11, Sen. Ted Cruz, a Texas Republican and chair of the Committee on Commerce, Science and Transportation, said a City Council vote late last year — rejecting a contract with Key Lime Air — violated DIA’s grant agreements with the FAA.
“Simply put, a federally funded airport cannot deny a lease to a tenant simply because it does not like that the tenant has a (contractual) relationship with Federal law enforcement,” Cruz wrote.
If the FAA agrees with his assessment, it could impact the airport to the tune of $90 million to $385 million, according to estimates from the committee’s staff.
In December, 11 of 13 council members rejected the contract with Key Lime, specifically citing its work with ICE amid the Trump administration’s mass-deportation campaign.
“I have to sign these deals when we’re done. … I will not have my name, Amanda Sandoval, on a Key Lime thing,” the council’s president said at the time. “I feel very, very, very adamant about that.”
Councilwoman Sarah Parady said then that she was aware the city could lose up to $90 million in grant funding but added: “Thatap a large number thatap coming out of an extremely healthy airport budget.”
The airportap budget is kept separate from the rest of the city’s finances. It relies on self-generated revenue from fees and other income, including from airlines and passengers.
The Senate committee’s staff said the city had been awarded $1.26 billion in Airport Improvement Program grants since 2006 and had received $872.5 million of those dollars, leaving $385.7 million still to be disbursed.
A spokesman for Johnston said the mayor’s office is working with the council to address the letter.
“Key Lime still has access to space at the airport,” Jon Ewing said. “We take federal law seriously and will ensure we move forward appropriately.”
A DIA spokesperson said Tuesday that airport officials were aware of the letter.
“The city/DEN are working on a response. The city is working with Key Lime and the FAA on this issue,” Courtney Law wrote in an email.
The council’s vote didn’t affect Key Lime’s ability to fly in and out of Centennial Airport in the south suburbs or to continue its work for the federal government.
In his letter, Cruz said the Commerce Committee was beginning an investigation into whether the city violated its grant assurances. He asked the city to provide information, emails and documents related to the decision.
Cruz also to Bryan Bedford, the administrator for the FAA, about the council’s decision. He called it “discriminatory behavior” and compared Denver’s action to a similar situation with a contractor at the Wilmington Airport in Delaware.
“The Denver City Council knew it was voting to violate the FAA grant assurances but chose to proceed anyway,” he wrote. “The FAA must ensure that federally funded airports comply with federal law and do not discriminate against lawful aviation operators.”
that Key Lime was transporting ICE detainees in October. Since then, the company has been the and at the University of Colorado Boulder, which has a contract with the airline to fly its sports teams to away games. Key Lime operated 83 flights across the country for ICE in September, Colorado Newsline reported.
Locally, Key Lime flies only out of Centennial, but the company owns another airline called Denver Air Connection that operates out of DIA.
The rejected contract would have allowed Key Lime, which has operated charter services in Colorado since at least 2006, to use 1,200 square feet of storage space at DIA, said airport spokesman George Karayiannakis. Key Lime also provides cargo feeder services to UPS at Denver’s airport, for which it was seeking to lease the space.
