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ACRP Report 47: Guidebook for Developing and Leasing Airport Property (2011)
Airport Cooperative Research Program (ACRP)

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Crider, Rick, Preisler, Matthew, Autin, Erin, Roth, Sanders, Fulton, Stephanie, Swartzlander, Julie, Tharp, Gary, Transportation Research Board. "New Bedford Regional Airport (EWB)." ACRP Report 47: Guidebook for Developing and Leasing Airport Property. Washington, DC: The National Academies Press, 2011.

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Page
84
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Page
84
Front Matter (R1-R11)
Summary (1-4)
1.1 Purpose of This Guidebook (5-5)
1.2 How to Use This Guidebook (6-6)
1.3 Research Approach (7-9)
2.1.1 Aeronautical Versus Nonaeronautical (10-10)
2.1.2 Land Lease (11-11)
2.1.5 Hangar Rental Agreement (12-12)
2.1.7 Airline Leases (13-14)
2.2 Essential Lease Elements (15-15)
2.2.4 Use of Premises (16-16)
2.2.6 Rent (17-17)
2.2.8 Operation and Maintenance (18-18)
2.2.10 Reversion/Reversionary Clause (19-19)
2.2.12 Rights, Reservations, and Obligations of Lessee (20-20)
2.2.15 Insurance Obligations (21-21)
2.2.16 Environmental (22-22)
2.2.17 Taxes and Fees (23-23)
2.2.19 Defaults (24-24)
2.2.21 Regulatory Compliance (25-25)
2.2.25 Force Majeure (26-26)
2.3.1 Noncompete Clause (27-27)
2.3.2 Right of First Refusal (28-28)
2.3.4 Term Extension Options (29-29)
Chapter 3 - Airport Owner/Sponsor Role (30-30)
3.1.1 Airport Master Plan (31-31)
3.1.2 Infrastructure Inventory Analysis (32-32)
3.1.4 Airport Business Plan (33-33)
3.2 Grant Assurances and Federal Compliance (34-34)
3.2.2 Community Considerations (35-35)
3.2.3 Land Management Compliance (36-36)
3.2.5 Business Practice Assurances (37-37)
3.2.6 Exclusive Rights (38-38)
3.2.7 Environmental Compliance (39-39)
3.3 Minimum Standards and Rules and Regulations (40-41)
3.5 Stakeholder Coordination (42-42)
3.5.2 Economic Development Agencies (43-43)
3.5.5 Colleges and Universities (44-44)
3.5.7 Federal Government (45-45)
3.6 Sociopolitical Considerations (46-46)
3.6.3 The Economic Development Role (47-47)
3.6.4 Incentives and Assurances (48-48)
4.1 Existing Agreements (49-49)
4.3 Funding (50-50)
4.4 Land and Facility Development (51-51)
4.5.1 Appraisal (52-52)
4.6 Airport Revenue Maximization (53-53)
4.7 External Stakeholder Resources (54-54)
5.1.1 Funding (55-55)
5.1.2 Quantifying Benefits - Pro Forma Analysis (56-56)
5.1.3 Capital Recovery Rates (57-57)
5.2.1 Return on Investment (58-59)
5.2.2 Financial Effects of Lease Components (60-60)
5.3.1 Debt/Equity Coverage (61-61)
5.4.1 Tax-Exempt Debt (62-62)
5.4.2 Private Financing (63-63)
5.6 Funding Sources (64-64)
5.6.1 Airport Improvement Program (65-65)
5.6.3 Alternative Grant Sources (66-66)
5.6.4 Private Capital (67-67)
6.1.1 Airport Planning (68-68)
6.1.4 Economic Impact Considerations (69-69)
6.2 Lease Execution (70-70)
6.2.3 Lease Rate Determination (71-71)
6.2.5 Reversion (72-72)
6.3.1 Project Analysis Checklist (73-73)
6.3.2 Lease Agreement Checklist (74-76)
Case Study Summaries (77-77)
Collin County Regional Airport (TKI) (78-79)
Monroe County Airport (BMG) (80-81)
Coastal Carolina Regional Airport (EWN) (82-83)
New Bedford Regional Airport (EWB) (84-84)
Albany International Airport (ALB) (85-87)
Baton Rouge Metropolitan Airport (BTR) (88-89)
Pittsburgh International Airport (PIT) (90-91)
Ted Stevens Anchorage International Airport (ANC) (92-93)
George Bush Intercontinental Airport/Houston (IAH) (94-95)
Tampa International Airport (TPA) (96-99)
Project Attributes Matrix (100-101)
Project Stakeholder Matrix (102-103)
Appendix B - Acronyms (104-105)
Appendix C - Glossary (106-122)
Appendix D - References and Bibliography (123-126)
Appendix E - Nominated Airport Projects (127-129)
Abbreviations used without definitions in TRB publications (130-130)

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OCR for page 84
84 Guidebook for Developing and Leasing Airport Property New Bedford Regional Airport (EWB) Airport Type: Non-Hub Tenant: Bridgewater State University Type of Business: Flight Training Facility Location: Airside SOURCE: http://www.flickr.com/photos/chchchacos/2968580859/ SOURCE: http://www.bridgew.edu/aviation/ Project Overview The City of New Bedford in southeastern Massachusetts is home to New Bedford Regional Airport (EWB) and Bridgewater State University. The college and the airport collaborated to convert a former Delta Air Lines pilot training facility (originally a plumber training facility) into a modern flight training facility. This collaboration was the result of mutually-vested interests by both parties. New Bedford's mayor made a strong commitment to ensure a solid aviation management program at Bridgewater State University. The New Bedford Regional Airport was an attractive location for its flight-training center due to its close proximity to campus, and the operating air traffic control tower. The conver- sion of the building was a collaborative effort between the city and the airport. The airport funded the upgrades to the building, while the city and university staff provided most of the labor in-house. Bridgewater's program caters to a broad base of students and has positively impacted the air- port and gained solid FAA support. At least 18 direct jobs have been created, and several busi- nesses have been positively affected through new fuel and maintenance contracts. Key Stakeholders The following is a list of key stakeholders responsible for the development and ultimate exe- cution of the lease arrangement: Airport Sponsor: The City of New Bedford paid approximately $50,000 to update the facility after Delta's departure and provided labor at no cost. Tenant: Bridgewater State University's operations are funded through the regular operating budget of the school. The University also provided labor in-kind to assist in preparing the facility for use as a training center. Division of Capital Asset Management: Negotiated the lease between the City and the University.