Reference no: EM133812640

Question

You are the airport manager of a city-owned public airport. The airport's development has been partially funded through federal grants. There is only one FBO on the airport, a business that has been there since the airport opened and that enjoys a close relationship with the airport authority. Much of the FBO's business is from international flights. Someone else proposes to open a competing FBO at the airport. The airport authority is concerned that there is not enough business to support two FBOs and wishes to protect the first FBO. Can the city legally impose a policy that will not permit establishment of a second FBO under any circumstances? Group of answer choices Yes, because unless the prohibition of the second FBO somehow discriminates against interstate or foreign commerce, the municipal body is within its jurisdiction to prohibit the second FBO. No, because the prohibition of a second FBO will constitute a "taking" and is therefore prohibited by the local municipality. Yes, because the power of eminent domain afforded to a local governing body is allowed to takeover or prohibit the construction of businesses provided there is just compensation for the "taking". No, because the grant agreement between the city and the FAA prohibits the city from granting any person, firm, or corporation the exclusive right to conduct any aeronautical activity at the airport.