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34 Guidebook for Developing and Leasing Airport Property factors. Bringing these multiple factors into a single, clear, concise, and implementable strategic document is the hallmark of a successful business plan. The market analysis section of the Airport Business Plan must be designed to identify poten- tial airport tenants and/or business sectors that can be supported by, and are desirable to, the air- port and its surrounding community. A market evaluation must identify which aviation- and airport-intensive industries are best suited for both the community (based upon economic and demographic profile) and for airport capabilities and infrastructure (as detailed in the Airport Master Plan and infrastructure inventory analysis). This analysis will identify where the airport is capable of recruiting new business and tenants without structural or institutional changes and where and what type of changes or reforms may be needed to successfully attract the targeted industries/activity. The financial planning tasks within an Airport Business Plan must include the preparation of revenue and expense projections as well as capital expenditure planning. A key component of this task is an examination of existing leases with particular attention to existing and future rev- enue generated from the leases. The airport sponsor should ensure that all current and potential lease agreements meet financial thresholds identified in any established leasing policy. A lease rate-setting exercise should also be conducted, whereby rates at similar sized airports with com- parable infrastructure and services are compared to those currently in effect at the airport. Through this exercise, the airport sponsor will be provided with a comparative basis to set or adjust current land and facility rates and charges. 3.1.5 Target Industry Analysis The Target Industry Analysis can be done as part of the Airport Business Plan, or as a stand- alone study. The goal of a Target Industry Analysis is to identify businesses and industries that are most suited to conduct business on available airport land. Typically, the Target Industry Analy- sis will focus on nonaeronautical businesses suitable for airport lands that do not have airside access or are deemed not to have any future aeronautical uses. Generating a list of target industries is accomplished by examining regional demographic trends, employment con- centrations, industry clusters, the regional industry profile, and other com- munity attributes (e.g., roadway infrastructure, utilities, communications, Albany International Airport has available incentives) in conjunction with specific airport infrastructure, land pursued the Very Light Jet (VLJ) availability, and competing airport considerations. Through this exercise, a market niche and proactively list of business and industry types most suited for both the community and approached HondaJet after devel- the airport will be derived. oping a Factory Service Center for The airport sponsor may want to consider working closely with local eco- Eclipse Aviation. The Airport had nomic development agencies and the local chamber of commerce when learned that HondaJet was inter- undertaking this exercise. Not only will these organizations help in identify- ested in a New England location, ing the target industries most suited for the region (particularly nonaeronau- so it offered a quick, efficient, and tical businesses), they can also help in recruiting the targeted businesses. friendly package that included options on airport land and per- mitting assistance that fulfilled HondaJet's facility needs and time- 3.2 Grant Assurances and frame. The approach was focused Federal Compliance on the user's needs and the clus- The airport sponsor is responsible for assuring that any lease or land use tering of like businesses, resulting agreement is in compliance with applicable federal regulations and adheres in an economic win for the region. to FAA guidance. Compliance considerations must be examined in the con- text of both the anticipated use of the land and in the structure of the lease.