Guidebook for Developing and Leasing Airport Property (2011) / Chapter Skim
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Pages 68-76
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From page 68... ...
68 Regardless of an airport's size, location, or market, certain best practices prevail and provide a common thread through development projects at airports of all types. The airport sponsor must strive to meet the demands of the airport's users, the needs and desires of the surrounding community, the financial concerns of potential developers, and the regulatory requirements of the FAA, all while ensuring that the current and future financial and operational health of the airport remains intact.
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From page 69... ...
and tax incentives rather than reductions in base rent. If it is deemed that lease rate reductions are necessary to secure the potential lessee, alternate forms of revenue, such as a percent of gross sale arrangements or additional fees based upon the lessee's business operations (such as fuel-flowage fees)
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From page 70... ...
, the third party may not be familiar with the regulations that guide on-airport land use and development. The airport sponsor must ensure that any proposed land use does not conflict with the airport's FAA-approved ALP, that any development does not encroach into any safety areas, or that the structures and associated operations do not inhibit the safe and efficient operation of the airport.
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From page 71... ...
• Routine inspection provisions for safety and compliance of airport tenants and users. • Construction and improvement standards that outline pre-approval by the landlord and the airport sponsor, local permitting agency requirements, and FAA notification of proposed construction once all other approvals are secured.
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From page 72... ...
The airport should consider modifications to rental rates that include a percentage of gross sales, depending on the type of business being conducted. Similarly, the airport might consider land leases that require a percentage of any profit be paid to the airport on the sale of leasehold improvements or equity.
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From page 73... ...
Summary of Best Practices 73 for the developer to be able to amortize the investment the company makes in improvements, but not so long as to unnecessarily restrict the options available to the sponsor to develop and improve the airport in the future. The savvy airport sponsor will be prepared to balance these sometimes competing goals so as to attract development without impeding future options, all the while securing market-rate fees that will support the operational costs of the airport in a sustainable fashion.
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From page 74... ...
? Does the project comply with community land use plans, zoning ordinances, and other applicable planning documents?
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From page 75... ...
Is the length of the lease stated with a clear "commencement date" on which the lease agreement will take effect? The lease term element of the lease agreement will also include any extension options, if included in the agreement.
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From page 76... ...
Minimum Standards documents as well as require compliance with any environmental and security regulations that may be applicable. Does the lease agreement allow for the inspection of the premises by the airport sponsor?
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