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Introduction 7 Along with the hard copy of this Guidebook, an online version is available at http://www. trb.org/Main/Blurbs/64688.aspx. The online version includes the Guidebook in electronic format. The paper version is best suited for those interested in more detail, providing point-by-point expla- nations of relevant issues. The online version will serve individuals who regularly seek quick access to certain sections of the Guidebook. In addition to the Guidebook, two PowerPoint presentations (a landside, nonaeronautical in nature, and an airside, aeronautical in nature, version) can also be found online at http://www.trb.org/Main/Blurbs/64688.aspx for further reference and use by the airport sponsor when communicating the guidelines and best practices. 1.3 Research Approach The research conducted for this Guidebook is based on a two-pronged approach that consists of first examining current literature relating to commercial leasing practices and guidelines (both air- port and standard commercial leases), and second, conducting 10 case studies of airports using best practice airport lease and development policy to be used as benchmarks (either in whole or in part) by airport sponsors. The following five steps summarize the foundation of the Guidebook's study methodology: Step 1 Development of a research plan that includes a compilation of existing research, trade and news publications, and other appropriate materials that describe creative solutions in response to a competitive development environment. A bibliography was developed using several means of information retrieval. Step 2 Preparation of a glossary of terms relevant to leasing and developing airport property. The glossary is tailored to the airport sponsor. Its goal is to provide a tool for effective commu- nication and consistency in preparing documents, and it includes terminologies for real estate development and banking industries as well. Step 3 Identification of 10 case study projects/airport sponsors to be used as representative case studies that highlight best management practices. Step 4 Identification of affected stakeholders, including those within the airport sponsor organi- zations, tenants and users of the airport, potential investors and developers of airport facil- ities, as well as local parties that may have a vested interest in airport development. Step 5 Compilation of a detailed description, analysis, categorization, and summary of substan- tive issues that affect public and private leasing and development transactions. The literature review was conducted in order to identify existing materials related to leasing, sale, and development of airport property. A variety of sources are cited, including aviation, financial, real estate, and appraisal industry publications, airport websites, and relevant federal regulations. The glossary of terms and bibliography developed from the literature review can be found in the Appendices C and D of this Guidebook, respectively. To compile the list of 10 benchmark case studies, project nominations were first sought from state aviation officials and FAA airport district office managers. Criteria for nomination included consideration of whether a project stimulated economic activity, created revenue for the airport sponsor, employed a diversity of innovative alliances or stakeholders, utilized creative financing, and/or optimized public and private investment. The second step in culling the list of case studies required contacting officials and representa- tives from each of the nominated airports. A questionnaire was mailed to the top executives of 30 of the nominated airports and e-mailed to the top executives of the other 51 nominated airports (a list of the nominated airports can be found in Appendix E of the Guidebook and a copy of the questionnaire can be found in Appendix A). The intent of the survey was to gather additional
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8 Guidebook for Developing and Leasing Airport Property information about the nominated project(s) from their respective airports so the details of the projects could be considered for inclusion in the Guidebook. The study team compiled the data collected on the nominated airports and proposed to the study panel 10 case study projects that the team felt captured the spirit of the Guidebook and the diver- sity of projects desired. The list of 10 case study projects was further refined to respond to the com- ments of the study panel, and, in the end, the collection of case study projects represented a contemporary collection of well-rounded development from which other airports can learn. The study team and the study panel based final selection of the 10 case study airports on four criteria: relevance to the study, the airport's ability/willingness to participate in the study, geo- graphic diversity to provide a cross section of airport examples throughout the country, and allocation within the five sizes of airports (general aviation, non-hub, small-hub, medium-hub, and large-hub). The selected case study airports and associated projects are listed below by air- port type with a brief synopsis of the project and identification of key stakeholders involved with each. General Aviation Airports: ˇ Collin County Regional Airport, Texas (TKI) Project: 32,000-square-foot corporate hangar complex for EDS/Hewlett Packard Stakeholders: Collin County Regional Airport, City of McKinney, Collin County Regional Investments (CCRI), McKinney Economic Development Corporation (MEDC), and the Texas Department of Transportation ˇ Monroe County Airport, Indiana (BMG) Project: Hangar complex construction Stakeholders: Monroe County Airport, Airport Board, Leaseholders Non-Hub Airports: ˇ Coastal Carolina Regional Airport, North Carolina (EWN) Project: Tidewater Air Services FBO/general aviation (GA) Terminal Stakeholders: Airport Authority, Tidewater Air Services, State of North Carolina, local busi- ness entities ˇ New Bedford Regional Airport, Massachusetts (EWB) Project: Reversion from old plumber training facility to flight training facility Stakeholders: Bridgewater State University, City of New Bedford, New Bedford Economic Development Council, New Bedford Redevelopment Authority, Division of Capital Asset Management, Delta Air Lines Small-Hub Airports: ˇ Albany International Airport, New York (ALB) Project: HondaJetTM sales and maintenance facility Stakeholders: Albany International Airport, New York State Dormitory Authority, HondaJet ˇ Baton Rouge Metropolitan Airport, Louisiana (BTR) Project: Coca-ColaŽ bottling plant Stakeholders: Greater Baton Rouge Airport District, The City of Baton Rouge-Mayor's Office, Baton Rouge Area Chamber, Louisiana Economic Development Medium-Hub Airports: ˇ Pittsburgh International Airport, Pennsylvania (PIT) Project: Clinton Commerce Park, a 100-acre warehouse park Stakeholders: Pittsburgh International Airport, State of Pennsylvania, Allegheny County, Allegheny Conference on Community Development, Findlay Township School Board, FAA, Pennsylvania Department of Transportation, Corps of Engineers, Colombia Gas
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Introduction 9 ˇ Anchorage International Airport, Alaska (ANC) Project: Alaska CargoPortTM Stakeholders: Anchorage International Airport, Alaska CargoPort, State of Alaska, Alaska Industrial Development Authority Large-Hub Airports: ˇ George Bush Intercontinental Airport/Houston, Texas (IAH) Project: Consolidated rental car facility (CRCF) Stakeholders: The City of Houston, Houston Airport System (HAS), a limited liability cor- poration formed by the rental car companies occupying the CRCF ˇ Tampa International Airport, Florida (TPA) Project: Redevelopment of closed US Airways Maintenance Facility Stakeholders: Tampa International Airport, PEMCO, Chamber of Commerce, City of Tampa, Hillsborough County, Enterprise Florida, Workforce Florida, Committee of 100, MacDill Air Force Base Interviews were conducted with airport management representatives at each airport to identify the key and unique aspects of the lease agreement, gather relevant documents and data, and iden- tify stakeholders involved in project development and the lease agreement. In most cases, site vis- its were also conducted to gather additional information and perspective. Detailed summaries of each case study can be found in the Appendix A of the Guidebook. The summaries include a detailed synopsis of the following: ˇ Project Overview, ˇ Key Stakeholders, ˇ Key Lease Elements, ˇ Financial Considerations for the Tenant, and ˇ Airport Benefits and Revenue.