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48 in passengers resulted in design and construction of the new In addition, the airport established a common area main- Midfield Terminal. The airport broke ground for the new ter- tenance (CAM) charge that included proration of real estate minal in May 2006 and moved in 3 years later. taxes, building insurance, maintenance of building systems (escalators, elevators, and HVAC), window washing, snow and trash removal, utility charges, landscaping, and security TENANT RECRUITMENT AND LEASE NEGOTIATION costs. CAM rates were $3.64 per square foot per year (as of ISSUES 2010). The airport hired an additional employee to main- tain the facility, and that position is paid through the CAM Both new tenants for the former terminal had existing opera- charge. Below is a summary of the major lease terms: tions in the area. Expedia Inc. had an off-airport location and the Missouri Army National Guard was already based at the A total of 59,000 ft2 was leased to Expedia Inc. for airport. Expedia liked the concept of occupying an air termi- nonaeronautical purposes; 25,000 ft2 were leased to nal and elected to keep much of the terminal dcor (e.g., signs, the Missouri Army National Guard for aeronautical gates, and basic spaces). The company leased approximately use (see Figure 41). 59,000 ft2 of the terminal. However, a large factor in the com- CAM charges are assessed annually to both tenants pany's decision to relocate at the airport was the space avail- based on projected expenditures. Increases are capped able for vehicle parking. The Missouri Army National Guard at 3% per year. leased approximately 25,000 ft2 of the former terminal for The lease term for Expedia is 5 years with five 3-year administrative offices that supported the armory that is cur- options for renewal at $4 per square foot base rent. rently located in Springfield. (This use of the former terminal The lease term for the Army National Guard is 1 year was considered an extension of existing aeronautical activity with five 1-year options for renewal at $3 per square for the Army National Guard at the airport.) foot for aeronautical use and a $3.34 CAM discount because the Guard is not responsible for elevator Expedia Lease maintenance. The airport board reserves the right upon 30 months' To establish a market rate for Expedia (nonaeronautical written notice to terminate the lease. use), the airport contracted with three appraisal companies Each lease contains a war or natural emergency clause to establish a value for rent. The airport divided the terminal that is similar to a preemption clause. space into functional categories as shown in Figure 40. One of the biggest surprises for the airport was the impo- Values for each type of space were established. The air- sition of new ADA requirements. These were triggered port took the median per square foot rent for each category because of a change in use of the 1964 terminal facility. Key based on the three appraisals. The FAA approved the lease areas of noncompliance included-- rates before executing the lease. The terms of the lease were the same for Expedia and the Missouri Army National Accessibility to parking and a clear passageway to Guard, but the square footage rates were lower for the all entrances: New ramps with accessible routes were National Guard because it was an aeronautical use and the required for entrance doors, all public areas in the Guard's presence provided additional security for the former building, accessible restrooms, identification signage airport terminal, which now has a significantly lower law with proper symbols and Braille, elevator controls, and enforcement officer presence than when it was operated as cab size. a terminal. FIGURE 40 Categories of terminal spaces for reuse and market value.