Planning for Offsite Airport Terminals (2010)

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The planning and implementation of an offsite terminal and transportation link requires the participation of individuals with expertise in areas that may include transportation planning, environmental regulations, law, advertising/public relations, finance, accounting, facilities plan- ning, real estate, operations, parking, risk management, government relations, architecture, design, and security. A project manager should be designated to work with the property owner and other outside parties and as a point of contact and coordination for all activity within the proj- ect sponsor organization. Key members of the team should communicate and meet on a regular basis to keep the project flowing smoothly. The following is a basic checklist of work items required to implement an offsite terminal and airport transportation link. The project sponsor will assign estimated times and resources to the tasks to determine the overall timeline for a project and the interdependency of tasks. The follow- ing assumptions are made: • Market analysis and ridership forecasts have been completed. • A property in the market area has been identified for the offsite terminal: – Project sponsor is in negotiations with property owner and – Property zoning allows for this type of use or can be changed to meet project deadlines. • Facility needs have been defined: project design has been completed and construction schedule has been determined. • Required environmental and traffic studies have been identified, subject to successful negoti- ations with the property owner. • Appropriate funds have been allocated for the project. • Service characteristics of transportation link have been defined—hours of operation, frequency, fare, and vehicle type. • Method for providing transportation link has been determined—self-operation, third-party operator competitive bid, or concession. Negotiation of Terms of Agreement In addition to typical terms that are developed for the purchase or lease of a property, key con- siderations in developing an agreement to lease or purchase a property for an offsite terminal include the following: • Revenue diversion—if the project sponsor is an airport operator, terms of agreement cannot result in actions that would be considered revenue diversion. Examples that should be scruti- nized include the requirement for a project sponsor to make a capital investment with a life longer than the proposed lease term or revenue sharing with the property owner. 67 C H A P T E R 8 Implementation Guidelines

• 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. 68 Planning for Offsite Airport Terminals

• Property negotiations, executed lease agreement or transfer of ownership, and occupancy date. • Conduct of environmental studies and related approvals. • Zoning changes. • Permits and other approvals from outside parties. • Facility development and provision of mitigation: design, construction, and opening of the terminal, parking, and access; mitigation to prepare property; and mitigation related to project impacts. • Transportation link development: acquisition of and preparation of vehicles, hiring/training of personnel, fare-collection technology, or competitive bidding process for third-party operator or concession agreement. • Development and execution of advertising and public-relations plan: – Advertising and public information to launch service, which should begin at least 2 months prior to opening day; – Ongoing advertising; and – Provision of a telephone information line and online information. • Coordination with other transportation agencies. • Develop plan for opening day including invitations for guests and media, where event will be located, who will speak, security, and how to attract passengers for terminal use during the event. • Signage plan and installation for offsite terminal, access points in the vicinity of the terminal, highway exits, and wayfinding at airport. • Security plan. • Establishment of internal accounting and reporting procedures. Transportation Link Work tasks related to introducing the transportation link include the following. Items will be added and subtracted to this list, depending on the project: • Determination of how transportation link arrivals and departures on airport curbs impact curb operations. • Fare-collection method for offsite terminal and airport terminals: – Machines and/or agents and – Cash, credit cards, and tie-in to transit system. • Staging area for buses at offsite terminal (facility issue). • Restrooms for bus drivers (facility issue). • Determination of whether luggage porters are necessary to assist with loading and unloading baggage. • Prepare bus operation: – If self-operated,  Hire and train staff,  Acquire or lease vehicles,  Prepare vehicles and conduct test runs of routing, and  Develop alternative routings for congested periods and emergency situations. – If operated by a third-party or concession,  Develop solicitation materials,  Include items listed above for self-operation and conduct solicitation, and  Establish service start date of transportation link, which will be determined by the bid- ding and selection process. Implementation Guidelines 69

Offsite Terminal Facility Preparation and Capital Improvements Work items related to the development, construction, and mitigation of the offsite terminal and parking are as follows: • Conduct studies related to operations, impacts, and mitigation such as environmental studies and traffic studies. • Obtain necessary permits for site preparation, construction, and operation. • If zoning changes required, complete application process. • Construct terminal and parking. • Coordinate arrival and installation of equipment, furniture, and finishes with construction schedule. • Activate communication lines and other utilities and test functionality prior to opening day. • Develop and install signage in the terminal, at the parking area, at the property entrance, and on the property. • Arrange for the installation of wayfinding on local roads and highway exits. • Take necessary steps for implementation of mitigation measures on site and in site-impacted area. On-Airport Facility Preparation The following are on-airport work items related to accommodating the transportation link and passenger wayfinding: • Designate loading and unloading zones at departure and arrivals curbs because, ideally, the transportation link will pick-up and drop-off at all air passenger terminals; • Develop and install signage inside terminal and at curb areas for customer wayfinding; and • Designate vehicle layover area on-airport or near the airport. Develop Pro Forma and Scenario Analysis Pro forma and scenario analysis tasks are as follows: • Develop pro forma to estimate the financial performance of the project; ideally, this is done prior to implementation. • Use pro forma to test scenarios such as fare levels, parking rates, different facility plans, and bus-service levels. • Refine pro forma as project progresses. Advertising, Branding, and Public Information To develop a program that will create awareness of the offsite terminal far enough in advance that passengers will plan to use it for flights taken beginning on opening day, branding, adver- tising, and public information campaigns should be completed. The tasks are as follows: • For branding, develop a brand identity for bus and terminal that will be incorporated into advertising and signage. • For advertising, – Develop an advertising campaign for launching the offsite terminal and transportation link and – Develop an ongoing advertising program to continue to build awareness and customer base. 70 Planning for Offsite Airport Terminals

• For a public information campaign, – Brief representatives who provide information to air passengers at the airport and on tele- phone lines with details of the offsite terminal operation and provide them with published materials. – Issue press releases related to the service prior to opening day, on opening day, and on an ongoing basis. – Coordinate with regional and local transportation agencies, chambers of commerce, con- vention and visitors’ bureaus, libraries, universities, community groups, and other orga- nizations to make them aware of the offsite terminal and for coordination with their public information efforts. – Provide a telephone line providing information on the service. – Provide information on project sponsor website. Communication The following tasks should be completed to ensure good communication: • Establish communication protocol among parties from opening day and beyond: – Project sponsor and property owner, – Project sponsor and bus operator, – Bus operator and property owner, – Security/law enforcement personnel and all parties, and – Communication protocol during emergencies. • Procedures should be put in place for – Customer emergencies, – Lost and found items, and – Customer feedback. Security Plan Develop security plan, including entities having jurisdiction on offsite terminal and on the route for the transportation link. Project Sponsor Approval Procedure The implementation plan should include project briefings, reporting requirements, and approval procedures necessary within the project sponsor organization and for outside parties. Accounting The following are accounting-related tasks: • Establish cost centers or other accounting procedures to track costs and make payments; • Determine how to charge cost of time spent by project sponsor administrative staff on offsite terminal and transportation link issues to the project financials; and • Assign responsibility for comparing actual costs and revenues with projected financial performance. Implementation Guidelines 71