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OCR for page 66
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
