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OCR for page 82
82 Guidebook for Developing and Leasing Airport Property Coastal Carolina Regional Airport (EWN) Airport Type: Non-Hub Tenant: Tidewater Air Type of Business: Fixed-Base Operator Facility Location: Airside SOURCE: RW Armstrong, 2009. SOURCE: RW Armstrong, 2009. Project Overview Coastal Carolina Regional Airport (EWN) is a small commercial service airport located in New Bern, North Carolina. The physical appearance of the existing Fixed-Base Operator (FBO), Tidewater Air, created concern within the local business community, airport board members, and airport representatives. It was felt that the existing FBO did not adequately represent the image of New Bern to the general aviation public that uses an FBO as a portal to the community. The Airport Authority visited other airport FBOs and conducted surveys in order to identify pos- sibilities for a new FBO facility and to guarantee a first-class facility that would best represent their community. In 2005 construction began on the new FBO facility, while the existing facility was still in use. Construction costs were divided into Vertical elements (structure), privately funded by Tide- water Air, and Horizontal elements (land preparation, paving), paid for by the Airport Author- ity. The Airport and FBO approached local businesses to discuss the donation of fixtures, furnishings, and other required items. Each room in the new facility was furnished using dona- tions from local businesses. The existing FBO lease was amended to include a term extension for the new Tidewater Air FBO facility. Craven County waived property taxes on the facility, and the airport collects monthly rental payments at the new facility, as well as a fuel-flowage fee on each gallon of fuel sold. Key Stakeholders Following is a list of key stakeholders responsible for the development and ultimate execution of the lease arrangement:

OCR for page 82
Case Studies 83 Airport Sponsor: Coastal Carolina Regional Airport Authority provided the land, infrastruc- ture, access, and utilities for the project. The Authority was also responsible for the design and construction of all Horizontal elements for this project and for the demolition of the existing terminal. Airport Board: The Airport Board initiated the request for a new facility and researched facil- ities at similar airports. Committee of 100 Economic Development Corporation: Communicated with members of Congress to gain support for the project. State of North Carolina: Provided $250,000 for the Horizontal elements of the construction. Tidewater Air (Tenant): Funded the Vertical elements of construction. Local Businesses: The inside of the building was furnished using donations made by local businesses, and totaling $35,000. Key Lease Elements Lease Term: Tidewater Air privately funded a large portion of this project. In return, Tidewater Air's lease agreement with the Airport was extended for 25 years. Land rent paid to the airport increases by 15% every 5 years. This project was divided into two portions: Vertical elements (funded by Tidewater Air): Foundation and Building pad and All above ground improvements which comprise the structure. Horizontal elements (funded by the Airport Authority): Entrance roadway, Parking lot, Site preparation, Drainage, Sedimentation and erosion control, Landscaping, Potable water, Sanitary sewer/septic system, Electrical utilities, and Phone lines and cable service. Considerations for the Tenant Tidewater Air was encouraged by the support from the community and the Airport Authority. The Airport Authority amended Tidewater Air's current lease to include a 25-year extension, allow- ing Tidewater Air to recoup its investments in the new facility. The Authority also funded the Hor- izontal elements of the new facility and paid for parking lot improvements. The building was furnished with funds donated by local businesses. Finally, Tidewater Air benefits from having prop- erty taxes waived at the Airport. Benefits to the Airport The previous FBO facility at EWN was in disrepair and functionally limited. The building was unable to accommodate the number of pilots transporting business travelers to and from New Bern. The new facility is a significant upgrade that will meet the needs of the aviation commu- nity. The Airport receives land rent for the real estate on which the facility is located. Tidewater Air pays the Airport a fuel-flowage fee on their fuel sales each month.