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ACRP Report 33: Guidebook for Developing and Managing Airport Contracts (2011)
Airport Cooperative Research Program (ACRP)

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Oever, Kent Vanden, Gittens, Angela, Warner-Dooley, Susan, Zaslov, Alexander, Tremont, Helen, Snipes, Tess, Hoerter, Sam, Transportation Research Board. "9.3 FAA Compliance." ACRP Report 33: Guidebook for Developing and Managing Airport Contracts. Washington, DC: The National Academies Press, 2011.

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Page
69
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Page
69
Front Matter (R1-R9)
1.1 Length of Term (1-1)
1.2 Control of Space (2-2)
1.4 Ability to Accommodate New Entrants and Growing Incumbents (3-3)
1.6 Treatment of Alliances (4-4)
1.8 Privileges Granted (5-5)
1.11 Reporting of Activity (6-6)
1.12 Form and Amount of Payment Security (7-7)
1.13 Insurance (8-8)
1.14 Assignments and Subletting (9-9)
1.16 Rate Making (10-10)
1.17 Billing, Payments and Adjustments (11-11)
1.19 MII Approval for Capital Projects; Formula for MII Calculation (12-13)
1.20 Bankruptcy Provisions (14-14)
2.1 Financial Terms (15-18)
2.2 Service and Operational Terms (19-19)
2.3 Food and Beverage Concessions (20-23)
2.6 Parking (24-24)
2.7 Rental Cars (25-29)
3.1 Critical Issues - Fiber, Cable, and Internet (30-30)
3.2 Critical Issues - Distributed Antenna Systems (31-32)
3.3 Critical Issues - Telephone Service to Airport Sponsor (33-35)
3.4 Critical Issues - Utility Leases or Easements (36-37)
4.1 Minimum Standards (38-38)
4.2 Critical Issues - Fixed-Base Operators (39-41)
4.3 Critical Issues - Hangar Leases (42-42)
4.4 Through-the-Fence Arrangements (43-43)
5.1 Trends in Ground Transportation Agreements (44-45)
5.3 Critical Issues in Ground Transportation (46-48)
6.3 Critical Issues in Contracting Services (49-52)
7.1 Critical Issues in Professional Services Agreements (53-55)
7.2 Selection Process (56-56)
8.1 Best Practices in Bid/RFP/RFQ Process (57-62)
8.2 Proposal Evaluations (63-63)
8.3 Best Practices Specific to Bid Processes (64-65)
9.1 Key Factors for Success in Airport Commercial Land Development (66-68)
9.3 FAA Compliance (69-70)
10.2 Term (71-71)
10.7 Compensation (72-72)
10.9 Reporting (73-73)
11.2 Public Art (74-74)
Abbreviations used without definitions in TRB publications (75-75)

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OCR for page 69
Non-Aviation Development 69 9.1.6 Solicitation Process Airports vary in their approach to soliciting developers. Some airports are required by local statute or policy to undertake a formal solicitation process, typically a Request for Proposals. Those not so required report being more likely to use a formalized process when seeking a mas- ter developer or when they believe there to be multiple developers interested in the transaction. Whether or not they use a formalized process, successful airports report value in continuingly marketing their opportunities and have established website pages on their airport websites as recent additions to their marketing profile. They have developed standard leases negotiated with individual developers on a first-come-first served basis. Again, the development of standard lease forms has been an evolutionary process for most airports as their market players, developers, lenders and tenants, and staffs and governing bodies gain confidence and understanding. 9.1.7 Site Development Standards The agreement should contain specifications for the review of designs by the airport and adherence to airport design standards--as may be modified for the commercial use. The lease should also require compliance with the notice and review process of Part 77 and a requirement to comply with any recommendations by the FAA in order to avoid the obstruction of air space. 9.1.8 Environmental Provisions Airports must comply with federal, state, and local environmental laws and regulations and must incorporate requirements in their development leases. Although specific provisions vary by locale, common to any development lease are provisions to require baseline and concluding assessments, the right of the owner to inspect for environmental compliance during the lease term, inspections by the owner and to outline responsibilities for indemnification, liability and insurance. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the DFW and MIA Development Agreement for example of comprehensive envi- ronmental provisions. 9.2 M/W/D/BE Participation Airports have included requirements for participation in development projects by minority, woman and/or disadvantaged business enterprises. This participation may be in the form of the purchase of areas of goods and services or more conventional requirements with respect to construction. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the DFW and PIT Development Agreements for example of provisions relating to minority and disadvantaged business enterprise participation. 9.3 FAA Compliance Finally, airports are required under the Airport Compliance Handbook--FAA Order 5190.6A-AGL600 to include provisions in their ground leases for the lessee to acknowledge that the airport's purpose is primarily that of accommodating civil aviation and, as such, the

OCR for page 70
70 Guidebook for Developing and Managing Airport Contracts lessee's rights to use the property for the (non-aviation) purposes set forth in the lease are sub- ordinate to and must not interfere with that primary purpose. The agreement should also reserve the airport's right to further develop or improve the landing areas of the airport as it sees fit with- out obligation to maintain and repair any particular portion of the facilities and aviation right-of- ways and otherwise preserve the airport's right of flight for the passage of aircraft in the airspace above the surface of the leased premises. Lessee must agree not to use the leased premises in a manner that interferes with the landing and taking off of aircraft. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the PIT and MIA Development Agreements for examples of provisions requiring compliance with FAA requirements for leases.