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Not for Sale

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50 Guidebook for Developing and Leasing Airport Property Noncompete agreements are generally in conflict with federal grant assurances and difficult to apply to commercial ventures such as an FBO or MRO operation. When seeking to execute a lease for commercial activity, the airport must be aware of current tenants in the same industry and be cognizant that grant assurances require access to new entrants at public airports. If non- compete clauses are prevalent in existing documents, changes may be required. 4.2 Marketing Airport marketing can be instrumental in developing land and leasing airport property. The marketing targets will differ, depending on whether there is an existing facility or if the airport plans on constructing a new facility. If a facility exists on airport property, the airport will likely market that facility to potential tenants. If the airport is planning to build a new facility, it may need to mar- ket to the community and local, state, and federal agencies to garner support for the project. In either case, a good relationship with the community's economic development entity and/or cham- ber of commerce is always beneficial. In fact, these entities may be able to help the airport secure funding for the project. With an existing facility, the economic development entity may be able to help attract tenants, and, in some cases, even build a workforce. An example of this can be found in the PEMCO project in Tampa, FL (see Appendix A). Characteristics such as the airport's loca- tion, possible niches, history, and area demographics should be taken into account as well. The airport professional that manages real estate within the airport's organization should typ- ically coordinate land negotiations. Negotiations usually begin with a written offer, which should not be less than the appraised value of the property. Valuation is discussed in more detail in Sec- tion 4.5 of this chapter. There are many ways to market and solicit proposals for project construction and for identi- fying land available for lease. Most common is to post the opportunity on airport websites and in association publications' business announcements, such as a monthly opportunities newslet- ter. Another option is to use a third party, such as the economic development entity described above. Many times, it is advantageous to use third parties for resources such as professional knowledge, time management, and financial management. Many publicly-owned airports could use third-party organizations for less cost than private organizations because these developers may be included within the local municipality. Whether it is a third party, the airport, or a con- sortium of entities, the most knowledgeable and able entity should be the one to manage the pro- posals and deploy varying means of mass communication. An important axiom to remember is that the larger the project and greater the potential for economic impact, the more competition for development. 4.3 Funding The ability to enter into a lease agreement is often dependent upon the availability of funding or the ability to obtain project financing. Whether or not the airport sponsor is responsible for financing the development project, either in part or in total, is dependent on the type of project and the financial resources the developer/tenant brings to the table. In addition to airport-specific resources (e.g., revenue derived from existing airport leases, fees, and charges), potential funding sources for an airport development project can be found from a variety of local, federal, and state agencies. These sources may include AIP, Passenger Facility Charge (PFC) Program, Local or state economic development grants,