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ACRP Report 47: Guidebook for Developing and Leasing Airport Property (2011)
Airport Cooperative Research Program (ACRP)

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Crider, Rick, Preisler, Matthew, Autin, Erin, Roth, Sanders, Fulton, Stephanie, Swartzlander, Julie, Tharp, Gary, Transportation Research Board. "3.2.3 Land Management Compliance." ACRP Report 47: Guidebook for Developing and Leasing Airport Property. Washington, DC: The National Academies Press, 2011.

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Front Matter (R1-R11)
Summary (1-4)
1.1 Purpose of This Guidebook (5-5)
1.2 How to Use This Guidebook (6-6)
1.3 Research Approach (7-9)
2.1.1 Aeronautical Versus Nonaeronautical (10-10)
2.1.2 Land Lease (11-11)
2.1.5 Hangar Rental Agreement (12-12)
2.1.7 Airline Leases (13-14)
2.2 Essential Lease Elements (15-15)
2.2.4 Use of Premises (16-16)
2.2.6 Rent (17-17)
2.2.8 Operation and Maintenance (18-18)
2.2.10 Reversion/Reversionary Clause (19-19)
2.2.12 Rights, Reservations, and Obligations of Lessee (20-20)
2.2.15 Insurance Obligations (21-21)
2.2.16 Environmental (22-22)
2.2.17 Taxes and Fees (23-23)
2.2.19 Defaults (24-24)
2.2.21 Regulatory Compliance (25-25)
2.2.25 Force Majeure (26-26)
2.3.1 Noncompete Clause (27-27)
2.3.2 Right of First Refusal (28-28)
2.3.4 Term Extension Options (29-29)
Chapter 3 - Airport Owner/Sponsor Role (30-30)
3.1.1 Airport Master Plan (31-31)
3.1.2 Infrastructure Inventory Analysis (32-32)
3.1.4 Airport Business Plan (33-33)
3.2 Grant Assurances and Federal Compliance (34-34)
3.2.2 Community Considerations (35-35)
3.2.3 Land Management Compliance (36-36)
3.2.5 Business Practice Assurances (37-37)
3.2.6 Exclusive Rights (38-38)
3.2.7 Environmental Compliance (39-39)
3.3 Minimum Standards and Rules and Regulations (40-41)
3.5 Stakeholder Coordination (42-42)
3.5.2 Economic Development Agencies (43-43)
3.5.5 Colleges and Universities (44-44)
3.5.7 Federal Government (45-45)
3.6 Sociopolitical Considerations (46-46)
3.6.3 The Economic Development Role (47-47)
3.6.4 Incentives and Assurances (48-48)
4.1 Existing Agreements (49-49)
4.3 Funding (50-50)
4.4 Land and Facility Development (51-51)
4.5.1 Appraisal (52-52)
4.6 Airport Revenue Maximization (53-53)
4.7 External Stakeholder Resources (54-54)
5.1.1 Funding (55-55)
5.1.2 Quantifying Benefits - Pro Forma Analysis (56-56)
5.1.3 Capital Recovery Rates (57-57)
5.2.1 Return on Investment (58-59)
5.2.2 Financial Effects of Lease Components (60-60)
5.3.1 Debt/Equity Coverage (61-61)
5.4.1 Tax-Exempt Debt (62-62)
5.4.2 Private Financing (63-63)
5.6 Funding Sources (64-64)
5.6.1 Airport Improvement Program (65-65)
5.6.3 Alternative Grant Sources (66-66)
5.6.4 Private Capital (67-67)
6.1.1 Airport Planning (68-68)
6.1.4 Economic Impact Considerations (69-69)
6.2 Lease Execution (70-70)
6.2.3 Lease Rate Determination (71-71)
6.2.5 Reversion (72-72)
6.3.1 Project Analysis Checklist (73-73)
6.3.2 Lease Agreement Checklist (74-76)
Case Study Summaries (77-77)
Collin County Regional Airport (TKI) (78-79)
Monroe County Airport (BMG) (80-81)
Coastal Carolina Regional Airport (EWN) (82-83)
New Bedford Regional Airport (EWB) (84-84)
Albany International Airport (ALB) (85-87)
Baton Rouge Metropolitan Airport (BTR) (88-89)
Pittsburgh International Airport (PIT) (90-91)
Ted Stevens Anchorage International Airport (ANC) (92-93)
George Bush Intercontinental Airport/Houston (IAH) (94-95)
Tampa International Airport (TPA) (96-99)
Project Attributes Matrix (100-101)
Project Stakeholder Matrix (102-103)
Appendix B - Acronyms (104-105)
Appendix C - Glossary (106-122)
Appendix D - References and Bibliography (123-126)
Appendix E - Nominated Airport Projects (127-129)
Abbreviations used without definitions in TRB publications (130-130)

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36 Guidebook for Developing and Leasing Airport Property of hangar lease agreements for existing facilities. The following provides a summary of what can be termed the "community considerations" grant assurances: Grant Assurance 6: Consistency with Local Plans. The project must be reasonably consistent with public agency plans (existing at the time of submission of the application) for the develop- ment of the area surrounding the airport. Grant Assurance 7: Consideration of Local Interest. The airport sponsor must give fair con- sideration to the interest of communities in or near where the project may be located. Grant Assurance 8: Consultation with Users. The airport sponsor must undertake reasonable consultations with affected parties using the airport at which the project is proposed. 3.2.3 Land Management Compliance There are four grant assurances that deal specifically with land use and land management, with guidelines focusing primarily on safety, planning, and airport standards. Note that disposal of airport land is covered in the next section, Land Releases. The following provides an overview of the sponsor assurances that must be considered to ensure airport compliance: Grant Assurance 20: Hazard Removal and Mitigation. Compliance with this assurance is designed to ensure the safety of airport flight operations. The airport sponsor must take appro- priate action to assure that terminal airspace required to protect instrument and visual opera- tions to the airport are adequately cleared and protected. This involves not only removing or mitigating existing airport hazards, but also preventing the construction or creation of future airport hazards. Grant Assurance 21: Compatible Land Use. The airport sponsor must take appropriate action, including the adoption of zoning laws, to restrict the use of land adjacent to, or in the immediate vicinity of, the airport to activities and purposes compatible with normal airport operations. This includes considerations for noise compatibility of any planned development on such land. Grant Assurance 29: ALP. The ALP is considered the key tool in planning and coordinating future airport development. It is mandated that the airport sponsor keep the ALP up to date at all times, showing (1) boundaries of the airport and all proposed additions, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and pro- posed additions, (2) the location and nature of all existing and proposed airport facilities and structures, and (3) the location of all existing and proposed nonaviation areas with all existing improvements. Grant Assurance 38: Hangar Construction. This assurance states that an aircraft hangar owner is subject to airport rules and regulations as dictated by the airport sponsor and stipulated in the lease. If the airport sponsor and a person who owns an aircraft agree that a hangar is to be con- structed at the aircraft owner's expense, the airport sponsor will enter into a lease agreement with the aircraft owner "that is subject to terms and conditions on the hangar as the airport owner or operator may impose." These terms and conditions are typically spelled out in the lease agree- ment and will reference the Airport Minimum Standards document. It is important to note that all changes to the ALP must be approved by the FAA. In fact, close coordination with the FAA and its appropriate airport district office is prudent in complying with all of the above grant assurances while embarking on airport development. Good commu- nication and close coordination is a sound strategy for avoiding instances of noncompliance with federal grant assurances.