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66 Guidebook for Developing and Leasing Airport Property addition, sponsors may have other reasons for using entitlements at a different airport than would be allowed under the law. A sponsor may enter into an agreement with the FAA to waive receipt of all or part of its entitlement funds provided the waived amounts are made available to the sponsor of another eligible airport. Transfer of entitlement funds from one airport to another must adhere to these basic guidelines: · Funds included in a transfer should be primary, cargo service, or non-primary entitlements. State apportionments are not transferable. Each agreement should specify entitlements of only one airport. · The receiving airport must be in the same state or geographic area as the airport of the spon- sor making a waiver. In this instance, a "geographic area" means a multi-state area where the receiving airport is in the same or an adjacent standard metropolitan area as the airport of the sponsor making a waiver. 5.6.2 PFC Program The PFC program allows the collection of PFC fees up to $4.50 for every enplaned passenger. PFC revenue may be used only to finance the allowable costs (e.g., total project cost, debt service, and/or financing costs) of approved projects at any airport the public agency controls. In addi- tion to full funding from PFCs, a public agency may combine PFC revenue and airport grant funds to carry out an approved project. However, the FAA may provide an exception to the rule requir- ing the use of PFC revenue to pay for debt service for approved projects only. The FAA may authorize a public agency under Part 158.18 to use PFC funds for debt service on noneligible projects if the FAA determines that such use is necessary because of the financial need of the airport. Additional detail on the PFC Pro- It is important to explore and gram can be found in Title 14 CFR Part 158-Passenger Facility Charges and understand the economic develop- FAA Order 5500.1. ment funds that may be available from state and local sources before project initiation. The Albany 5.6.3 Alternative Grant Sources Airport Authority, after being Most airport sponsors are familiar with the FAA funding mechanisms dis- selected by HondaJet for their cussed in the previous section. However, discovering the multitude of local, state, Northeast headquarters, held sev- and federal grants that may be applicable to airport development is often a eral meetings with the New York daunting task. These grants are channeled through numerous, and often frag- State Senate Majority Leader mented, EDAs at the local, state, and federal levels, and have stringent require- Joseph Bruno and with HondaJet ments that dictate how and where these funds must be used. When seeking officials to secure State funding for EDA funds for an airport development project, the local EDA, or similar the planned development. The organization, should be the primary resource for the airport sponsor. The local Airport applied for two grants on agency will be able to identify all local, state, and federal grant sources and behalf of HondaJet East. They incentives that may be applicable to an airport development project and can include a grant of $500,000 from act as a point of contact in efforts to obtain these grants. the New York State Economic Development Assistance Program, State and local grants are tied to specific economic development and job and a grant of $180,000 from the creation goals and vary on a state-by-state or region-by-region basis. They New York State Transportation may be restricted to defined geographic areas or to targeted industry classifi- Bond Act AIR '99. In addition to cations. The airport sponsor should work closely with EDA officials to iden- the State-funded financial pack- tify which potential grant or incentive applies to a given airport development age, the Albany Airport Authority project, and how to position said airport project in economic development is also providing a $45,000 match terms in order to maximize the potential of receiving the targeted grant. to be used towards HondaJet's The requirements for obtaining federal EDA funds that may be applicable facility construction costs. to airport development projects are standard throughout the nation. Federal EDA grants are also typically tied to job creation or projects that increase a