Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter.
Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.
OCR for page 50
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,
