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OCR for page 68
68 Planning for Offsite Airport Terminals Length of lease/option to purchase--if the location selected for the offsite terminal proves to be successful, it will be undesirable financially and from a customer-service perspective and may be impossible due to land availability to relocate the offsite terminal. For short-term leases, the project sponsor should negotiate terms of renewal so that property is available if the offsite ter- minal is successful and the renewal rents can be planned for. A long-term lease should be nego- tiated with a favorable early termination provision with an option to purchase the property. Control of document--during negotiations, one party should have control of the document, preferably the project sponsor. Payment terms--payment terms required by the property owner should be compatible with the accounting system of the project sponsor. Liability and insurance--terms should be acceptable to the project sponsor. If the transporta- tion link is operated by a third-party operator, the responsibilities of each party should be clearly defined. Flexibility/exclusive use of lease area--if the land for the offsite terminal is leased, the lease should not be restrictive in terms of uses that can be added to the property if the uses meet zon- ing requirements. For example, if the project sponsor decides to add revenue-generating busi- nesses to the offsite terminal at a later date or sublease a portion of property allocated for future terminal or parking expansion, the project sponsor should have the ability to do so without having to pay the property owner monies in addition to the lease payment. The project spon- sor should have exclusive use of the leased area. For example, the project sponsor should be the only entity that can place advertising on the leased area. Mitigation--if mitigation is required on or in the vicinity of the offsite terminal, establish par- ties responsible for mitigation. Inspection--the project sponsor should pay for independent inspections of the property, as well as a title search. In addition, the project sponsor should be aware of any easements on the property. Facility development--if the property owner is developing the facility, the project sponsor should require warranties and specific details of what will be provided. Shared space--if the offsite terminal is co-located with other uses, exclusive spaces, shared spaces, and related liability should be defined. Environmental studies/environmental impact report--if the results of environmental stud- ies may render the project infeasible or if the project sponsor cannot enter into an agreement until proper environmental clearances have been obtained, securing a commitment may be difficult for both parties since neither will want to be at risk to conduct the studies. If the prop- erty owner agrees to finance the studies, the owner will be at risk during this time for the cost of the studies and for the time and foregone revenue when the property was not available to other potential buyers or tenants if the project sponsor doesn't commit to the property. Work- ing this out can be challenging and may be resolved with some type of contingency agreement or memorandum of understanding. Competition--the project sponsor should consider requiring the property owner to agree not to develop or lease property to be used for an airport transportation link within a certain radius of the location of the offsite terminal. Timeline Development Develop a timeline for the opening of the offsite terminal. For all major tasks, identify depen- dencies between tasks, time for completion, and responsible parties. Items include the following: Project sponsor's internal approval process for all project items such as funding allocation, solic- itations to conduct studies, construction contracts, lease approval or transfer of ownership, bus operation, and acquisition and installation of technology and furniture.