The Town of Pleasantville, USA owns and operates a municipal airport serving general aviation. The town accepted federal Airport Improvement Program funds as recently as 2003 for various airport improvement projects.

1. There is a restaurant on the airport, and another is proposed. The present one is owned and operated by a local family that has lived in the area for generations, while the new one is proposed by a national restaurant chain. The airport board would like to protect the local restaurant from competition from the out-of-town chain. Can the board legally exclude a second restaurant from the airport? Explain.
2. There is an FBO on the airport, and another is proposed. The present one is owned and operated by a local family that has operated the FBO for generations, while the new one is proposed by an international FBO chain. The airport board would like to protect the local FBO from competition from the big chain. Can the board legally exclude a second FBO from the airport? Explain.
3. If either of the previous questions would violate the provisions of the town’s grant agreement with the FAA, what recourse is available to the applicant whose proposal was rejected by the board?