Innovative Revenue Strategies – An Airport Guide (2015)

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A 1 Appendix A Annotated Bibliography A.1 ON AIRPORT REVENUE SOURCES AND TECHNIQUES “AAAE Panel Considers New Revenue Strategies,” Aviaon News, May 21, 2010 During AAAE’s Annual Conference and Exposion in Dallas/Fort Worth, Texas, industry officials discussed the importance of the naon’s airports developing alternave revenue sources. Many airports may need to consider business approaches, especially for terminal development, that rely on market demand as opposed to individual airline support and create partnerships without dependency. One industry official suggested that airports need to be more creave and take risks, such as accepng display of corporate icons, implemenng business partnerships, adding services like pet hotels, and accepng adversing on jet bridges. “Aéroports de Paris,” Hoovers Company Records, July 2010 Aéroports de Paris, or ADP (Paris Airports), is the airport authority that owns and manages the fourteen civil airports and airfields in the Île de France (Paris) area. ADP has been adept at developing, equipping and operang airports in France. ADP also contracts to design and manage airport operaons outside of France. The company has worked on more than 80 internaonal contracts since the 1950s. FedEx’s European base is at ADP’s Charles de Gaulle Airport, which is Europe’s largest cargo airport. To increase revenues at its airport retail businesses, ADP and The Nuance Group launched a joint venture in 2008 called Duty Free Paris, which operates about 30 fashion bouques at Charles de Gaulle and Orly airports. “Airport Execuves Get Tips on Boosng Non Aeronaucal Revenue,” Aviaon News.net, June 10, 2008 [Online]. Available: hp://www.aviaonnews.net/?do=headline&news_ID=155748 The airport industry panelists advised delegates at the AAAE’s Annual Conference and Exposion in New Orleans, Louisiana to take a fresh look at parking, land development and terminal concessions while sll looking at future uses of new technology to increase non aeronaucal sources of revenue.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 2 “Airports Feed Travelers’ Need for Power Outlet,” Airports, May 1, 2007, p. 3 Airports across the country use a variety of models to offer power outlets to travelers trying to charge electronic equipment, including cell phones, laptop computers and MP3 players. Hartsfield Jackson Atlanta Interna‡onal Airport indicated that they were exploring the possibility of adding sponsored power sta‡ons, but that the decision not to charge for the power would remain the same. Akomolafe, B., “Experts Canvass Alterna€ve Revenue Sources for FAAN,” Compass Newspaper, Apr. 12, 2009 Avia‡on experts believe that the Federal Airports Authority of Nigeria (FAAN) should focus on non aeronau‡cal revenue. Experts believe that Nigeria has failed to put in place an efficient way of genera‡ng revenue from parking, concession fees and other related sources. Nigeria’s revenue collec‡on system is full of human interference that allows loss of huge income to the industry. Experts agree that the system presently used by Nigeria to capture its revenue from non aeronau‡cal sources is crude and ripe for sabotage by retail businesses that must pay a percentage of sales/revenue. FAAN could implement Point of Sales Terminals (POS) and a percentage of the concession fee will go directly into FAAN’s account. POS could also be used to obtain accurate sta‡s‡cs on the airports. “Boingo Extends Sponsored Wi Fi to Airports via NewMarke€ng Partnership,”Wireless News, Nov. 13, 2009 Boingo Wireless, an operator of Wi Fi networks in airports, announced that recent Wi Fi access sampling campaigns have generated up to 35% increases in revenue at select airports, while delivering click through rates of up to 39% for sponsors.1 Compart, A., “Privately Run U.S. Airport Starts its Own Airline Service,” Aviaon Daily, Feb. 25, 2010, p. 1 Privately operated Branson Airport and its affiliated travel agency are ge™ng into the airline business by offering scheduled charter service. Ticket prices are determined in consulta‡on with airports at the other end of the routes. The airport and the travel agency currently offer service between Branson and Aus‡n, Texas; Des Moines, Iowa; Houston, Texas; Shreveport, Louisiana; and Terre Haute, Indiana. The airport and travel agency are looking to add three or four more ci‡es by the end of the year. CPCS, First Class Partnerships, Harral Winner Thompson Sharp Klein, Inc., Portscape Inc., Thompson Galenson and Associates, LLC, Alternave Financing Approaches for Passenger and Freight Rail Projects, Draft Working Paper 1: Global Scan and Assessment of Established Financing Models, NCRRP 1 Click through rates measure the ra‡o of clicks to impressions of online marke‡ng campaigns.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 3 Project 07 01, Transportaon Research Board of the Naonal Academies, Washington DC, August 2013. This research project is due for compleon in February, 2015. The objecve of this research is to idenfy alternave methods for financing passenger and freight rail project development. Dallas/Fort Worth Internaonal Airport. Non Aeronaucal Revenue Through Airport Services. Dallas, Maximizing Non Aeronaucal Revenue through Airport Services Conference, IPQC, August, 2009 This presentaon provides an overview of the Dallas/Fort Worth Internaonal Airport (DFW) concession program and non aeronaucal revenue acvies. On airport property includes headquarters for 22 Fortune 500 companies. Other commercial developments include a pet hotel and resort, an addional hotel, as well as mixed office and retail space. DFW has also signed with the Chesapeake Energy Corporaon to drill for natural gas, gaining 25% of the royales on all gas produced. DFS.Maximizing Non Aeronaucal Revenue. ACI Asia Pacific Small Airports Seminar, DFS, Oct. 2008 To maximize revenues, DFS2 created an approach aimed at creang partnerships based on complementary strengths and building synergies by focusing on core businesses. The presentaon focuses on bringing luxury brands into airports to create a unique shopping experience for the customer. By staoning these bouques, DFS is hoping to engage and a™ract consumers with quality guarantee and premium customer service. “DFW Uses the Internet to Sell Surplus Merchandise,” Airports, Jan. 16, 2007, p. 2 Dallas/Fort Worth Internaonal Airport (DFW) holds on line aucons to sell old and unused items. Items include plumbing and ulity equipment, building materials, office supplies, electronics, cell phones and furniture. The 2006 aucon ne™ed the airport $500,000. DFW hopes to raise more than $3,000,000 through this on line aucon. Ehmer, H. and J. Parappallil, “Potenal of Non Aeronaucal Revenues for Airport Dusseldorf Internaonal,” Internaonal University of Applied Sciences, Mar. 23, 2007 The study examines the potenal and scope of non aviaon revenue for Dusseldorf Internaonal Airport. It evaluates the performance of non aviaon facilies at the airport by comparing the results to that of similar European airports. The study concludes that the airport’s non aviaon enty is underperforming and seeks to find the reasons behind it and offer some praccal suggesons for improvements. 2DFS is the German Air Navigaon Service (Deutsche Flugsicherung).

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 4 Eaton, G. Strategies for Enhancing Success in Increasing Non Aeronaucal Revenues. ACI NA Airport Board Members & Commissioners Annual Conference; Chicago, April 27, 2009 In this Ricondo & Associates, Inc., presenta
on there are several principles for increasing revenues, including: (a) upda
ng outdated agreements and rates, (b) improving customer service, (c) capitalizing on intermodal facili
es, (d) considering priva
za
ons, and (e) going green. Mr. Garfield Eaton presents the pros and cons of priva
za
on and renewable energy op
ons, such as reduc
on of carbon emissions to improve public opinion, use of solar and wind power, and geo thermal siding to reduce opera
ng costs. Hazel, R., O. Fainsilber, N. Herrmann and S. Sala. Innovave Finance and Alternave Sources of Revenue for Airports. Oliver Wyman, Inc. Retrieved August 2010 Oliver Wyman prepared a report that covers a number of issues that arise for airports when air demand is down and revenue from airlines is more vola
le and at risk. In addi
on to perspec
ve on current condi
ons, there is interes
ng discussion about the business model used in Europe to diversify and increase airport revenue. “Hong Kong to Open Metals Depository for Secure Storage,” Airports, Jan. 23, 2007, p. 3 The ar
cle discusses a precious metals depository that was scheduled to open at Hong Kong Airport by the end of 2007. According to the ar
cle, the depository will provide a central, secure storage facility for traders, ins
tu
onal investors, gold producers and refineries, and provide service as a physical se’lement pla“orm for trades made on the Chinese Gold and Silver Exchange Society and other Asian markets. As a result, the airport authority will generate revenue through rentals of secure storage space and the depository, which will have a total of up to 300 square meters. Horwitz Benne, B., “Airport Cies; Energy Conservaon, Sustainability in Performance Based Design are Key Issues for M/E/P Designers on Airport Projects – And Yes, Airport Security as Well,” Consulng Specifying Engineer, Mar. 1, 2007, p. 28 The reauthoriza
on of the FAA’s Airport Improvement Program has been
ed up in Congress for several years, so airports have developed interest in a new business model with some alterna
ve forms of revenue. The “airport city” is a concept with retail and restaurant franchises, hotels, offices and apartments re crea
ng the airport as a des
na
on. Airport authori
es are also accommoda
ng the evolving business plans of airlines. Common use terminal equipment (CUTE) allows carriers to share data transmission and delivery systems. It is very popular, but harder to implement at major hubs because large carriers want to maintain control of their terminals. At Miami Interna
onal Airport, CUTE is pushed because the facility is landlocked and unable to expand. Airports are also focusing on other factors, such as design challenges, security and saving energy.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 5 “Indian Airports: Catching Up with the Times,” Business and Industry, Nov. 2009, p. 14 The ar cle discusses the financial state of the Indian Avia on Industry, and the differences between financing improvements at privately owned airports, publicly owned airports and airports managed though public private partnerships in India. “Indy Makes Deal with Chase Bank for Flight Info Display Screens,” Airports, June 6, 2006, p. 21 Indianapolis Interna onal Airport entered into a one year flight informa on display screen sponsorship deal with Chase Bank. The sponsorship let the airport increase its non aeronau cal revenue. Chase is also sponsoring power outlets throughout the airport. Jacobs Consultancy. ACRP Report 24: Guidebook for Evaluang Airport Strategies and Supporng Technologies. Transporta‡on Research Board of the Na‡onal Academies, Washington, DC, 2009 ACRP Report 24 presents current and poten al parking programs that can be implemented at airports in the United States. The report focuses on specialized needs for public parking in airports and improvements in customer service. The second part of the report explores new strategies and technologies used to increase efficiency. The third part evaluates the costs, benefits, and implementa on of various parking strategies and technologies. MacGowan, J. Revenue Growth at Dublin Airport. Dublin Airport Authority (DAA), Dublin, April 2008 This presenta on provides interes ng comparisons of aeronau cal versus commercial revenues at some of the major European airports. DAA has had low avia on revenues in the past and has embarked on a mul faceted program to improve traffic, passenger experience and passenger dependent revenues. DAA upgraded concessions and introduced pre book parking packages, be’er restaurants and shopping deals. Dublin has also developed a pre/post airport SMS (short message service) message update on flight condi ons and an intermodal cket system so that passengers can purchase train ckets to des na on/connec ng ci es. Martel, F., “External Factors and Their Impact on Non Aeronau‡cal Revenue,” Journal of Airport Management, Vol. 3, July Sept. 2009, pp. 337 344 In recent years, non aeronau cal revenue has played an increasing role in airports’ total revenue. The paper examines the named factors underlying the genera on of non aeronau cal revenue at airports. Two significant external factors the current credit crisis and worldwide economic recession, and the recent fluctua ons in the price of oil are analyzed with respect to their poten al impact on airlines, passenger volumes and the genera on of non aeronau cal revenue for airports. The paper concludes that these external factors affect airports and non aeronau cal revenue and, to a certain extent, airports can take ac on to mi gate this impact.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 6 Mohn, P. Understanding the Passenger’s Mind Set at Airports for Increased Commercial Value. Maximizing Non Aeronaucal Revenues Conference, IPQC, August, 2009, M1nd Set, Switzerland. In order to maximize commercial and airport consumer spending, M1nd Set examined the psychological stages of passengers at airports. Mohn iden€fied four stages: Airport Arrival, Check In, Security Checks, and Gate Loca€on as primary areas where stress occurs. As each barrier is passed, there is a reduc€on in stress. The ar€cle iden€fies key traits of travelers, as well as general and specific customer service expecta€ons used to determine buyer behavior. Moses, N., “Aviaon: The Future of Airports . . .,” Business World, July 2010 This ar€cle discusses the viability of India’s airports through real estate projects. “Naonal Magazine Hosts Airport Industry Execuves in Houston,” Houston Airport System, Mar. 16, 2010 In this ar€cle, industry leaders discuss trends in non aeronau€cal revenue. The Houston Airport System (HAS) has been innova€ve in its alternate revenue source approaches. Its innova€ve approaches include a center designed to handle fresh cargo imports (Fresh Air Cargo 1 AH Center), which translates into fresher flowers, fruits and vegetables and seafood. HAS also incorporates a mixed use development design with possible opportuni€es for a gas sta€on, convenience store, restaurants, shops, banks, hotel, and cell phone lot with airline informa€on monitors. “Narita Airport Authority Rises to the Challenge of Travel Retail,” The Moody Report, Jan. 2005, pp. 34 38 The ar€cle discusses Narita Airport Authority’s joint ventures with NAA Retailing Corpora€on (“NAAR”) to boost commercial revenues and retail sales. Narita Airport Authority also has a joint venture with ADT that will take over the general duty free stores in Terminal 2 for the brand bou€ques. The third joint venture is with JAL/DFS that will open new stores in the completed Terminal 1 south wing. This joint venture will run a duty free shop and brand bou€ques. “Narita Unveils New High End Shopping Mall in Terminal 2,” Airports, Apr. 17, 2008, p. 3 Japan’s Narita Interna€onal Airport opens Narita 5th Avenue. The mall takes up 5,000 square meters, includes 16 new shops such as Burberry, Bvlgari, Car€er, Coach, Gucci, Hermes and Tiffany & Co. “Non Aeronaucal Revenue,” Aviaon Insight, Winter 2007 The issue discusses various strategies implemented by industry officials with respect to non aeronau€cal revenue.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 7 O’Malley, C., “Airport Ponders Radical Ideas to Boost Revenue,” IBJ.com, Mar. 27, 2010 [Online]. Available at: h€p://www/ijb.com/ar…cle/print?ar…cleId=18928 The Indianapolis Airport Authority is considering numerous ways to maximize revenue, including making the airport a community des‚na‚on. The airport has hosted numerous small concerts, and is considering using its garage roof for car shows, swap meets, and seasonal fes‚vals to create a venue of entertainment that might provide shopping as a by product. The airport is also considering providing its exper‚se to other airports. “One Bag Rules Severely Impac…ng Retail Revenue,” Airport Commercial and Retailing, July 2010 The ar‚cle discusses the impact that the one bag rule has on non aeronau‚cal revenues with respect to retail. Some airports affected by this rule have seen a 40% drop in retail revenues. O€, J., “Eastern U.S. Airports to Huddle on Impact of Oil and Gas Drilling,” Aviaon Daily, May 17, 2010, p. 6 A drilling conference will be scheduled to discuss explora‚on and drilling at airports. The drilling conference agenda is being developed around topics such as compliance with FAA and environmental regula‚ons, retaining federal grant assurances, nego‚a‚ons with oil and gas companies, and how airports can take advantage of the revenue poten‚al. O€, J., “Airports Take to Drilling, See a Future in Marcellus Shale,” Aviaon Daily, May 10, 2010, p. 2 Land rich airports that sit atop oil and natural gas deposits in the eastern U.S. are exploring deals with companies to tap into these natural resources. Several Pennsylvania airports are ac‚vely involved in drilling, and the deep seated reservoir called the Marcellus Shale is offering new opportuni‚es. Pi‘sburgh Interna‚onal Airport will issue a request for proposals to explore drilling into the Marcellus Shale. In addi‚on, the Arnold Palmer Regional Airport in Latrobe, PA has arranged with a firm to undertake shale gas explora‚on and drilling. The Bradford Regional Airport in Pennsylvania is the site of 32 oil and gas wells. Oil and gas drilling are good revenue streams with many possibili‚es for airport revenue. O€, J., “Denver Airport Buys Petro Canada Oil and Gas Wells at DIA,” Aviaon Daily, Mar. 8, 2010, p. 4 Denver Interna‚onal Airport has acquired 27 oil and natural gas wells on its 34 acres from Petro Canadian Resources. The airport owns the mineral rights on all of its acres, but it had leased the 27,000 acres to Petro Canadian for explora‚on. The wells are expected to yield $3.5 million in addi‚onal annual revenue for the airport.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 8 O, J., “Google Offering Free Wi Fi at 47 Airports during Holidays,” Airports, Nov. 24, 2009, p. 1 Google’s free Wi Fi service offered to users at these 47 airports serves as an experiment. Through the free period, Google will be surveying users to determine trends and acquaint them with the search engine’s considerable product offerings. A key stumbling block for airports is that charges for Wi Fi service have become a source of non aeronau‰cal revenues, useful funds as the poor economy drags down traffic and sales at airport shops. O, J., “Airports Eye Concessions as Hopes Rise for Big Turnaround,” Airports, Nov. 17, 2009, p. 1 The ar‰cle discusses non aeronau‰cal revenue largely from concessions. The ar‰cle states that airport offices were op‰mis‰c that passenger traffic would rebound by 2011, which would increase volume of travelers and raise non aeronau‰cal revenues from concessions. O, J., “Airport Examines Pros, Cons of Managing Ground Handling,” Airports, Sept. 29, 2009, p. 1 The ar‰cle discusses ground handling units at airports and the poten‰al to become new revenue sources for airports. Airports are finding that by offering the service to airlines, it becomes an incen‰ve to build new services and a means to a’ract other new airline clients. O, J., “Rising Costs, Debt Load Pose Huge Challenges for Miami Dade,” Airports, July 7, 2009, p. 1 The ar‰cle discusses steps to be taken by Miami Dade Airport to raise funds from tradi‰onal and non aeronau‰cal revenue sources such as parking and concessions, cargo warehouse projects, private development, and public/private partnership investment programs. Perre, B., “Singapore Airport Terminal Services Q4 Profit Up 10.2%,” Aviaon Daily, May 7, 2010, p. 7 Singapore Airport Terminal Services’ strong performance was driven mainly by the full consolida‰on of its wholly owned subsidiary, Singapore Food Industries, which contributed revenue of $165.1 million. This is in contrast to Singapore Airport Terminal Services’ avia‰on revenue, which comes from grounds handling services it provides at Shanghai and other airports in the region, which contributed $218.7 million. Pletz, J., “Aen•on O’Hare Shoppers: Looking Beyond Food and Drink Kiosks, Airport Aims to Tap Fast Growing Revenue Stream with Retail Expansion,” Crain’s Chicago Business, Nov. 19, 2007, p. 2 O’Hare Interna‰onal Airport plans to expand its retail space by 13% to include bi name apparel brands (like Brooks Brothers, Nike and Nine West), spa services, and business service centers catering to corporate clients. O’Hare’s non airline revenue has risen about 10% annually in recent years. O’Hare is also looking for bigger cuts from its exis‰ng restaurants and shops by increasing original rents from 2% - 25% to 35% - 40% of gross sales.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 9 “Power Port Kiosks Offer Power, Computer Access at Airports,” Airports, Jan. 9, 2007, p. 3 PowerPort, a Berea, California-basedcompany, has partnered with several airports across the country (LaGuardia, Minneapolis Saint Paul Interna†onal, Lambert St. Louis Interna†onal, San Francisco Interna†onal, San Antonio Interna†onal and Aus†n Bergstrom Interna†onal), to use kiosks to provide a full range of internet services, charging of electronic equipment and rental of laptop computers. PowerPort splits the money generated from kiosk use under a revenue sharing program based on airport’s volume and site loca†on. Sanjeevi, S. Airport Airline Partnership, Bengaluru Internaonal Airport, Maximizing Non Aeronaucal Revenue Conference, Aug. 26, 2009. This presenta†on examines the travel pa’erns and consump†on of various groups of passengers using India’s airports. A number of recommenda†ons are presented about how to increase passenger spending and a’ract non flying customers to the airport for shopping. “SapientNitro and SH&E Launch Mul channel Airport PlaŽorm,” Business and Industry, May 11, 2010 SapientNitro, part of Sapient, and SH&E, an avia†on consul†ng firm that is a subsidiary of ICF Interna†onal, launches a new joint venture: Ionos, a mul† channel communica†ons and marke†ng pla˜orm that blends airport’s real †me travel informa†on with precisely targeted marke†ng messages for travelers. Ionos integrates into the airport’s exis†ng technical architecture and has an adver†sing model that allows airports to offer all their marketers a free basic adver†sing program, in addi†on to targeted paid adver†sing. The pla˜orms debuted at Denver Interna†onal Airport, featuring a website and a corresponding iPhone applica†on called goHow Airports, available free at the iTunes store. Through its different channels, Ionos reinforces airport branding, drives traveler sa†sfac†on and increases revenue per passenger. Taylor, M. and L. Snell, “Innovave School Facility Partnerships: Downtown, Airport, and Retail Space,” Public Interest Instute, Aug. 2001 This policy study discusses innova†ve ways school districts are partnering with private businesses, airports and retail shopping malls to provide space for classroom facili†es. These facility models can be beneficial to the districts, parents, and children and they should be seen as a viable alterna†ve to tradi†onal means of funding school construc†on. Thompson, T., “Non Aeronaucal Revenues – Short Term Opportunies,” Airport Council Internaonal North America, Economics and Finance Conference, Jacobs Consultancy, Apr. 7, 2009 The presenta†on focuses on the importance of revenue diversifica†on in small, medium and large hub airports. The increase in non aeronau†cal revenue can enhance the ability of airports to pursue capital programs. Short term non aeronau†cal revenue ideas include iden†fying opportuni†es for enhanced

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 10 lease revenues, pursuing non tradional real estate development, naming rights for airports or terminals and outdoor adversing. Richard, J., “So Drinks & Coffee Carry Experienal Markeng into Airport Industry,” Airport Improvement Magazine, Jan. Feb. 2009 Cleveland Hopkins Internaonal Airport signs a five year agreement valued at $2 million dollars granng Pepsi exclusive pouring rights throughout the terminals. Boston Logan Internaonal Airport and Dunkin’ Donuts implemented an experienal campaign to create awareness of the company’s special blend coffee through non tradional markeng that included quarterly sampling programs and a 7 foot tall brand icon of the Dunkin’ Donuts brand’s styrofoam coffee cup located in two high traffic areas. “Wayne County Inks Pouring Rights Deal with Pepsi,” Aviaon Daily, July 31, 2009, p. 3 Wayne County Airport Authority sold pouring rights to PMG Michigan (Pepsi) for Detroit Metro Airport what will bring in an esmated $1.4 million a year and as much as $9.8 million over the seven year contract. Unnikrishnan, M., “Revenues Revisited,” Aviaon Week and Space Technology, Mar. 23, 2009, p. 42 U.S. airports are more focused on non aeronaucal revenue as collapsing demand for air travel increases. Columbia Regional Airport Authority (CRAA) is shišing its focus from landing fees, parking and concessions to its number one asset, land. Oakland Internaonal Airport saw a 21.5% decline in air traffic in 2008 and is now focusing on corporate and general aviaon, as well as cargo. A proposed venture to build a pet hotel on Oakland Internaonal land fell through, but Airship Ventures, which offers zeppelin tours in the Bay Area and Napa Valley, uses the airport as a port of call. Wilson, B., “ACI: Airports, Partners Should Join to Improve Revenue Efforts,” Aviaon Daily, Sept. 25, 2009, p. 6 This arcle discusses the importance of airports expanding revenue from commercial acvies. Airport business managers need to diversify wisely and build up robust business models that can weather difficult economic mes. Airports’ increasingly entrepreneurial approaches and close collaboraons with business partners support a stable business model that is good for the airport community. Wilson, B., “Airports Use Varied Methods to Ensure Balanced Budgets,” Airports, Dec. 2, 2008, p. 3 Airports are taking different measures to ward off budget pressures caused by global economic crisis and U.S. airlines’ domesc capacity cuts. Philadelphia Internaonal Airport’s budget acons include a limited hiring freeze, an overme cap and reduced contractual services. Jacksonville Internaonal Airport is deferring capital projects and consolidang posions, which resulted in some layoffs.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 11 Wilson, B., “Double Take Bag Carousel Ads Unveiled at Kansas City Airport,” Airport, Nov. 18, 2008, p. 2 DoubleTake Markeng partnered with Clear Channel Interspace Airports to install a large banner ad on the moving parts of the baggage carousel at Kansas City Internaonal Airport where travelers watch ads as they wait for their baggage. This form of adversing is ideal for technology products, as well as automobiles and entertainment. An Arbitron study showed that adversers can increase their exposure to upscale Americans via airport adversing. The system is also in place at Dallas/Fort Worth Internaonal Airport (see below). Wilson, B., “DFW Becomes First to Test New Bag Carousel Ad System,” Airports, July 8, 2008, p. 3 Dallas/Fort Worth Internaonal Airport became the first airport to introduce baggage carousel adversing developed by DoubleTake Markeng and ADspressive Graphic. The system allows companies to put a large banner ad on the moving part of the baggage carousel, gaining access to thousands of passengers as they wait for their baggage. Automobiles, restaurants, local entertainment (such as musicals, plays and movies), and technology products are well suited for this medium. Yu, Roger. (2006, September 24) Airports Make Hay from Their Open Land. USA Today. Retrieved from www.usatoday.com/travel/flights/2006 09 24 airport revenue usat_x.htm This arcle outlines entrepreneurial efforts by several airports to develop non aeronaucal revenues. Specifically menoned are: Houston Bush Internaonal and Denver Internaonal who have rented out excess land to farmers. Dallas/Fort Worth Internaonal and Denver Internaonal are developing natural gas fields. Other airports discussed are: Kansas City Internaonal (office building acquision), Miami‘s Opa locka West (limestone mining), Jacksonville Internaonal Airport Authority (mul use development) and El Paso Internaonal (golf course). The City of Houston formed an affiliate company, Houston Airport System (HAS) Development, to market the airport’s services to foreign airports. Venturini, Alceste. Challenges and Opportunies in Building Non Aeronaucal Revenue. Jacobs Consultancy, Salvador Bahia, Nov. 2009. This report analyzes the sources of airport revenue and takes an in depth look at concessions, parking and passenger planning. The report also examines how another rise in the price of oil could translate into further reducons in travel demand, based on typical price elascity.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 12 A.2 OFF AIRPORT REVENUE SOURCES AND TECHNIQUES 1. Adeel, L., D. Levinson, Z. (Jerry) Zhao, M. Iacono, S. Aultman, K. Das, J. Junge, K. Larson, and M. Scharenbroich, Value Capture for Transportaon Finance: Technical Research Report, Center for Transportaon Studies University of Minnesota, June 2009 This study details the relaonship between transportaon and land values. It describes what benefits might accrue as a result of a transportaon investment, and a number of opons for capturing this benefit for the purpose of funding a transportaon improvement. Major financing techniques associated with value capture explored in the document include land value taxes, tax increment financing (TIF), special assessment districts, transportaon ulity fees (e.g., taxing based on use of a system), development impact fees, joint development and air rights development. The proposed policies are evaluated in terms of their suitability for implementaon locally, based on the criteria of economic efficiency, social equity, adequacy as a revenue source, and polical and administrave feasibility. This document provides a good overview of these strategies. Examples of how each technique has been used for transit and roadway infrastructure are given including: Land Value Taxaon – Pennsylvania, Alabama, Delaware, Australia, New Zealand, Canada TIF – Details for Illinois and Oregon, and a table describing TIF in 49 states Special Assessment Districts – Transit related districts in Los Angeles, Miami, Tampa, Washington, DC, Atlanta, Cleveland, Columbus, and Minneapolis; highways in Montana Joint Development – Hong Kong, Taiwan, Tokyo, Thailand, Washington, DC, New York City, Portland, Miami Dade, and Philadelphia Impact Fees and Negoated Exacons – Texas, Georgia, Idaho, Montana, North Carolina, Tennessee, Kansas, Florida, Arizona, Oregon, Utah and Nevada Transportaon Ulity Fees – Colorado, Oregon, Idaho, Texas, Washington, Wisconsin Air Rights Development – Transit examples include WMATA, MARTA, MBTA, Los Angeles Metro. Highway examples include Boston, Duluth, Seažle and New York. The study focuses on how each technique might be implemented in Minnesota and includes a comprehensive bibliography for each tool. 2. GVA Grimley, Developing Methodology to Capture Land Value Upli Around Transport Facilies, for the Scosh Execuve, 2004 hžp://www.scotland.gov.uk/Publicaons/2004/11/20385/48346 The study evaluates strategies for capturing land value increases around transportaon facilies. Eight strategies for capturing revenue from the increases in property values are evaluated: business rate levy (applied locally to businesses, not property owners), local authority business growth incenves (similar to TIFs), business improvement districts, land value taxaon (focuses on land value rather than building value), green field development tax (one me tax on the sale or granng of planning permission for a green fields site), freehold charge (one me charge on increase in property values in a specified area), planning gain/tariff (levy on new development in a designated area similar to a special assessment district), and buy in charge (methods that charge landowners to capitalize on infrastructure

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 13 investments, including connecon charges, transit impact fees, density bonuses, and joint development/land acquision and resale). Each method is assessed based on praccality of introducing the mechanism, transparency, acceptability to various interest groups, effecveness in terms of policy issues, potenal revenue generaon, and operaon costs. A detailed table summarizing the results of the assessment is provided. Results indicate that each method has plusses and minuses. 3. Beltline.org home page. hp://www.beltline.org/Home/tabid/1672/Default.aspx Wheatley, Thomas, Beltline a TAD Off Track but not Derailed” in hp://clatl.com/atlanta/beltline a tad off track but not derailed/Content?oid=1272204 The two sources cited above discuss the Atlanta Beltline Tax Increment Financing District (TAD), which was established in 2005 to provide the local share of funding for land acquision, mul use trails, green space, transit, transportaon improvements, and affordable workforce housing. Funds can also be used for developer costs such as brownfields cleanup, or to support development in undeveloped areas. The Beltline is a $2.8 billion redevelopment project centered on a 22 mile rail corridor around downtown Atlanta. The project involves comprehensive land use and transportaon planning to influence the development of the metropolitan area over the next 20 years. In addion to the TAD, which is expected to raise $1.7 billion of the funding, the project will be financed through a capital campaign, addional local funding, and federal transportaon funds. The original plan for the TAD involved three taxing districts: Fulton County, the City of Atlanta, and the Atlanta School District. Each agreed to freeze their share of property tax receipts over the next 20 years at 2005 values. All increases would go into a fund to pay for Beltline projects. While the TAD sll stands, the second arcle sited above notes that a state court ruled that the school district cannot allocate funds to the TAD as per state law. Thus, the amount of funds available through the TAD has been cut roughly in half. 4. Hudson Yards Infrastructure Corporaon, hp://www.hydc.org/downloads/pdf /mta_railyard_deal.pdf. The Commiee on New York City Affairs, The Financing of the Hudson Yards Development Project, hp://www.nycbar.org/Publicaons/record/Vol_62_2 /Financing_Hudson_Yards.pdf The Hudson Yards redevelopment area of New York City (NYC) encompasses approximately 50 city blocks on ManhaŸan’s West Side. The project will involve the redevelopment of 360 acres of underulized land, including the expansion of the Javits Convenon Center and 28 million square feet of office space, 12,000 housing units, and hotel and retail space. The project requires the extension of the #7 subway line, open space, a garage, and other infrastructure that is esmated to cost $3 million. To finance 100% of the project, NYC established a new development corporaon, the Hudson Yards Infrastructure Corporaon, and passed legislaon allowing them to issue long term bonds to pay for the infrastructure investments, which will be repaid by Payments in Lieu of Taxes (PILOT) from new development. (The PILOT route was adopted because NYC would have had to designate the area blighted in order to establish a TIF district.) NYC also agreed to purchase from the Metropolitan Transportaon Authority (MTA) a 50% interest in the Eastern Rail Yards transferable development rights, which will be sold to other developers at the Hudson Yards. The second arcle provides some

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 14 cricism of the funding mechanism in light of the financial downturn and the depressed development market. Note: NYC allows transfer of development rights from a parcel where development is not wanted to a parcel where development is sought. Depending on zoning on sites near an airport, Transfer of Development Rights (TDR) could be employed, selling airport development rights to nearby properes. The usefulness of this tool would be tempered by building height restricons near airports. 5. Rybeck, R., Using Value Capture to Finance Infrastructure and Encourage Compact Development, Sage Publica
on, 2004, hp://www.reconnecngamerica.org/ This document discusses the relaonship between land values and transportaon. It then describes value capture remedies, including taxes on buildings and taxes on land values. In addion, the author describes a be‹erment district established in Washington, DC to help finance a new Metrorail staon. The local government and the Washington Metropolitan Transit Authority (WMATA) worked together to collect evidence that property values around WMATA staons go up substanally. In this case, the City of Washington, DC and the council of the District of Columbia established a be‹erment district that included properes within 2000 feet of the proposed staon. Properes within the district were assessed a Metro Benefit Assessment Fee to help pay for the new staon. 6. hp://www.transportaon finance.org/pdf/funding_financing/funding/local_funding /Airport_Max_Case_Study.pdf Airport MAX is a 5.5 mile extension of Portland’s light rail system from downtown to the airport. The extension was built by a partnership between Bechtel, the Port of Portland, the City of Portland and TriMet. The project had been planned for several years, but financing was not available. The line would run through 458 acres of land controlled by the Port of Portland and planned for a mixed use business park to be called the Portland Internaonal Center. Bechtel Corporaon understood the value of this land and the value of the light rail service to its development. The company approached all the key players about assisng with the financing and building of the light rail extension in exchange for the sole right to design and build the extension, and the right to develop 120 acres of the Portland Internaonal Center adjacent to the light rail staon. The arcle describes the roles played by each of the key agencies and Bechtel, and the resulng development. This is a key example of a public private partnership in building a transit line. 7. E 470 Public Highway Authority, 2009 Fact File – Facts about E 470, updated January 2009, hp://www.e 470.com/Default.aspx?pn=HEF E 470 (short for Extension 470) is a private, 47 mile long toll road that forms an outer beltway around the eastern side of Denver from Colorado C 470/Interstate 25 in the south to Interstate 25/Northwest Parkway in the north. The road passes through Douglas, Arapahoe, Adams, Broomfield and a small sliver of Denver Counes. It also traverses the municipalies of Parker, Centennial, Aurora, Commerce City, Brighton, Thornton and Glendale. The freeway directly serves Denver Internaonal Airport and

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 15 intersects with Interstate 70 in Aurora. Because no state or federal funds were available in the late 1980s to build the road, several communi„es along the proposed route joined together to create the E 470 Authority (the Authority). At this „me, no state statute existed to grant the Authority the power or revenue sources needed to build the road. Through intensive lobbying, the Authority was able to secure legisla„on that would allow it to plan, design, finance, construct and operate the facility. In addi„on to toll collec„on, the legisla„on allows the Authority to establish and collect highway expansion fees from developers of property within 1 1/2 mile of either side of the highway, with higher fees imposed the closer a property is to the highway or highway interchange. The premise of the fee is that these developments will u„lize the highway more heavily than other developments. The Authority may, with voter approval, levy vehicle registra„on fees and create special districts. A $10 vehicle registra„on fee was voted in by the three communi„es in the corridor in 1988 to help fund its development. 8. New York Avenue Florida Avenue_Galludet University Metro Staon: A Case Study. Retrieved from the World Wide Web July 23, 2010. hp://transportaon finance.org/pdf/funding_financing/funding/local_funding/New_York_Avenue_Case_Study.pdf This ar„cle describes the public private partnership between local land owners, the District of Columbia, the Federal Government, and WMATA to build a new transit sta„on to serve a redevelopment area. The project was expected to cost $75 million, to be paid in equal shares by the District of Columbia, the Federal Government, and local property owners. The property owners’ share came from a special assessment district. The District of Columbia issued bonds which are now being paid back through the special assessment. The special assessment applied to all non residen„al proper„es within the district. The amount of the assessment was calculated on the current assessed value of the property at the „me the district was established, and was calculated to ensure that the revenues generated from the assessment would be sufficient to pay off the bonds. 9. Oregon Department of Revenue, Transit Payroll Taxes for Employers at hp://egov.oregon.gov/DOR/BUS/IC 211 503.shtml hp://www.tax.state.ny.us/mctmt/default.htm hp://www.transportaon finance.org/funding_financing/funding/local_funding /income_payroll_employer_taxes.aspx Over 20 states allow local income or payroll taxes for general revenue purposes. A few impose such tax revenues be specified for transporta„on related purposes. Local income taxes are imposed on the residents of an area, while payroll taxes are imposed on the total salaries paid by a business and are, effec„vely, a tax on the place of employment. For transporta„on purposes, this can be thought of as a commuter tax. The Oregon Department of Transporta„on administers payroll tax programs for both the Tri County Metropolitan Transporta„on District (Tri Met) and the Lane County Mass Transit District. The tax is assessed at 2/3 of 1% on the gross payroll for services performed in the service areas for each of the two transit agencies. The State of New York Department of Taxa„on and Finance imposes a transporta„on mobility tax on certain employers and self employed individuals opera„ng within the metropolitan commuter transporta„on district. Those revenues fund the Metropolitan Transporta„on Authority.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 16 10. Johnson, Jaye Pershing, Uses of Fees or Alternaves to Fund Transit, in Legal Research Digest 28, December 2008. hp://www.trb.org/Main/Public/Blurbs/160510.aspx This Transit Cooperave Research Program (TCRP) document defines impact fees as “a type of development exacon that is: In the form of a predetermined money payment; Assessed as a condion to the issuance of a building permit, an occupancy permit, or a plat approval;3 Pursuant to local government powers to regulate new growth and development and provide for adequate public facilies and services; Levied to fund large scale, off site, public facilies and services necessary to serve new development; In an amount that is proporonate to the need for the public facility generated by a new development.” Fees are differenated from taxes in that fees are for a cost imposed for the development for special services (e.g., transit service or road access) directly a“ributable to or required by the new development upon which the fees are assessed. “Impact fees cannot generally be used for the operaon, maintenance, repair, alteraon or replacement of capital facilies.” Impact fees for transit have been enacted in Florida and California, but are rarely used elsewhere. One issue is that the jurisdicon that imposes impact fees is usually a municipality or county, while transit districts build and operate transit. In addion, transit capital costs are relavely well subsidized by federal funds. Transit agencies need funds for operang and maintenance, costs that cannot be funded through impact fees. Experiences with impact fees in Oregon, Washington, California, and Florida are discussed, and the enabling legislaon for impact fees in several other localies is documented. The document also discusses TIFs and Special Taxing Districts, nong that TIFs have been used to fund transit in IL, PA, GA and OR, while special taxing districts have been used in Chicago, Pennsylvania, Portland and Georgia. Impact fees in Washington State are described in detail at www.mrsc.org/subjects/Planning/transimpac˜ees.aspx. Note: Impact fees would be difficult to impose on new development around an airport, as the airport is creang the development, as opposed to the development creang the need for the airport. Could there be a different kind of impact fee, not based on a geographic area, but based on a business type? For example, in Massachuse“s, industries such as biotech are a“racted to the region because of the research instutes, but ulize airports extensively and ožen lead to the need for expansion. Could an industry type be targeted? What would this mean for the ability to a“ract these businesses to a state? Could a special assessment district also be structured to target an industry group? 3 A plat map shows the locaons of lots for sale.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 17 11. Hough, J., A. G. Smadi, and J. D. Bitzan, Innovave Financing Methods for Local Roads in the Midwest and Mountain Plains States, July 1997, hp://www.mountain plains.org/pubs/pdf /MPC97 74.pdf This report discusses thirteen poten
al revenue sources/strategies for financing rural roads in the Midwest. The strategies are divided into tradi
onal (property tax, fuel tax, vehicle registra
on, mill levy), innova
ve (sales tax, special ownership tax, wheel tax, and rural improvement/special assessment districts), and poten
al sources (severance tax, bond, cost par
cipa
on, traffic viola
ons, and telephone tax). The text describes advantages and disadvantages of each, and iden
fies jurisdic
ons where the strategies are employed. Note: Sales taxes have been used to finance several transit extensions: Lynx Blue Line – Charlo’e h’p://transporta
on finance.org/projects/cats.aspx; BART Airport Extension h’p://transporta
onfinance.org/projects/bart_sf_aiport_extension.aspx. Also see h’p://www.transporta
onfinance.org/funding_financing/funding/local_funding /op
on_sales_taxes.aspx. A varia
on of this approach for airports would be a statewide or countywide hotel tax. This would likely require a legisla
ve change. 12. hp://www.orlandoairports.net/east_airfield/public_hearing_presentaon.pdf ; hp://www.orlandoairports.net/east_airfield/volume1/2_purpose.pdf. Cost par
cipa
on is a key component of the expansion of the East Airfield Development proposal for Orlando Interna
onal Airport. The airport is expanding adjacent to a major development corridor. The municipality developed a master plan to iden
fy future infrastructure needs concurrent with the planning for the airport expansion. The airport is working with the surrounding jurisdic
ons to put in shared infrastructure, such as roadway improvements and water treatment facili
es, in order to share and save costs. This is a cost reduc
on strategy, rather than a revenue enhancement tool. 13. Beveridge & Diamond, P.C., I CUBED: Massachuses Infrastructure Investment Incenve Program, April 2008, hp://www.bdlaw.com/news 431.html The Massachuse’s Infrastructure Investment Incen
ve Program (I Cubed) authorizes the state to authorize up to $250 million for infrastructure investments to support new job growth and economic development in support of major new private development. “I Cubed is a financing agreement whereby the Commonwealth of Massachuse’s, the municipality and the private developer share the cost and risk associated with the construc
on of public infrastructure needed to support a cer
fied economic development project. In order to be cer
fied, the project must be approved by the municipality, the Secretary of Administra
on and Finance and Mass Development (h’p://www.massdevelopment.com /about/industry/public infrastructure/) and meet the criteria set forth in the statute and regula
ons. The public infrastructure improvements for a cer
fied project will be financed by bonds issued by Mass Development. During the construc
on of the project, the debt service on the bonds will be paid by the

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 18 private developer through municipal assessments that will reimburse the Commonwealth for the debt service. Once the commercial component of the project is occupied and genera€ng new state tax revenue, the debt service related to that component will be paid by the Commonwealth. If there is a shor…all in the state tax revenues generated by the project, the municipality will reimburse the Commonwealth for that amount. The developer may agree to cover this shor…all, but is not required to do so. The Commonwealth announced the first project to receive funding under I Cubed on May 4, 2010. The Assembly on the Mys€c project will redevelop a 66.5 acre industrial site in Somerville. The final project will be a mixed use, transit oriented development project that includes 2,100 residen€al units, 1.8 million square feet of office space, 1.1 million square feet of retail space, a 160 200 room hotel, and parkland. The I Cubed funds will be used to provide roadway improvements to support a new IKEA store as well as to the MBTA sta€on. More detail about this project can be found at: h–p://www.wickedlocal.com/somerville/news/x1406503903/Somervile receives 10 million from state for Assembly Square project. 14. Fogerty, N., N. Eaton, D. Belzer, and G. Ohland, Capturing the Value of Transit, prepared for the United States Department of Transportaon, Federal Transit Administraon, November 2008, h­p://siteresources.worldbank.org/INTTRANSPORT/Resources/336291 1152714163458/2744896 1152714187091/raine presentaon.pdf This document provides informa€on on a range of techniques used to help fund the capital costs of transit investments. These include: Assessment Districts – Los Angeles Metro, Portland Streetcar, South Lake Union Streetcar in Sea–le, Dulles Rail Transit Investment District Tax Increment Financing (TIF) – Pennsylvania’s Transit Revitaliza€on Investment Districts, which support transit oriented development around transit sta€ons and allows transit agencies to share in the value capture Joint Development – WMATA and BART programs at exis€ng sta€ons, new joint development at Cascade Sta€on in Portland and the West Dublin/Pleasant BART sta€on Development Impact Fees – San Francisco and Broward County, FL The Broward County example is par€cularly interes€ng. In 2005, Broward County adopted a Transit Oriented Concurrency (TOC) system, spli¤ng the county into ten districts and preparing transit development plans for each district. TOC is an approach to assure that capital development of transit is concurrent with changes in economic development. The total cost of needed transit improvements is charged as a fee to all new developments based on a formula that es€mates the expected trip genera€on from the development.

APPENDIX A – ANNOTATED BIBLIOGRAPHY A 19 15. Raine, A.,Making the TOD Vision a Reality: Two US Case Studies. Power Point presentaon to The World Bank Transport Forum 2006, Washington, DC, March 28, 2006, h p://siteresources.worldbank.org/INTTRANSPORT/Resources/336291 1152714163458/2744896 1152714187091/raine presentaon.pdf This presentaon describes the joint development program developed in support of the Tren Urbano light rail system in Puerto Rico. The government of Puerto Rico passed legislaon allowing the Highway and Transportaon Authority (HTA) to assemble land for joint development, dispose of property for joint development and benefit from joint development revenues. HTA and sister agencies assembled more than 100 acres in the corridor, as well as air rights. Eight sites have been developed with a mix of uses, for an esmated total investment of $637 million, resulng in an esmated $44.9 million in proceeds to HTA. 16. Goody Clancy et al., Appendix F: Literature Review: Transit Oriented Development from a Land Use and Economic Development Perspecve, March 2008. h p://southcoastrail.com/documen–rameset.asp?docname=h ps://www.commentmgr.com/Pr ojects/1212/docs/Appendix%20F%20 %20Literature%20Review.pdf This document provides a comprehensive review of the literature related to transit oriented development, including a secon on financing. The financing secon discusses examples of tax increment financing, or TIF (Atlanta Beltline, New York City Hudson Yards); special assessment districts (Los Angeles Metro Red Line Benefit Assessment District, WMATA); and joint development (WMATA, Tren Urbano, Portland Airport Extension, Los Angeles Red Line Staons, Atlanta MARTA staons, Albuquerque equity parcipaon in joint development, staon connecon fees in Atlanta, Washington, and Sea›le, and cost sharing agreements in Miami, San Diego and Washington). The Albuquerque equity partnership is a unique example in which the City became an equity partner with a developer to build a 500,000 square foot mixed use development. The City contributed the land, built a parking structure and provided tax abatements in exchange for a return on the investment. 17. Federal Highway Administraon, 2006 Status of the Naon’s Highways, Bridges, and Transit: Condions and Performance, Chapter 13 Innovave Finance, 2006, h p://wwwcf.œwa.dot.gov /policy/2006cpr/chap13.htm This document provides details about how a variety of tools are being employed to finance transportaon infrastructure improvements. Of the tools described, the most applicable is Public Private Partnerships (P3s). P3s is a term that refers to contractual agreements between public and private partners, with more acve parcipaon by the private sector about the design, building and operaon of a tradional public infrastructure project. The PPPs described include private toll roads such as the South Bay Expressway (San Diego), the Chicago Skyway, the Trans Texas Corridor, and the Indiana Toll Road. PPPs ožen involve the development and operaon of a highway or transit facility by the private sector, with a substanal up front payment or long term lease payment to the public sector enty.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE NNI A 20 18. AASHTO Center for Excellence in Project Finance, Katy Freeway Reconstrucon, undated, at hp://www.transportaon finance.org/projects/katy_freeway.aspx; Energy Corridor District, Energy Corridor District Mobility Brochure, undated, at hp://www.energycorridor.org /mobility/documents/ECDMobilityBroch full mech_web.pdf; www.legalps.org/texas /SD/sd.004.00.003814.00.aspx The Energy Corridor District is a special district established by the Texas legislature that incorporates a high growth business district along Interstate 10 (Katy Freeway) in Houston. Through a special assessment, funds were collected from District businesses to help fund the expansion of the Katy Freeway. 19. Eweing, R., Transportaon Ulity Fees, in Government Finance Review, June 1, 1994, hp://www.allbusiness.com/finance insurance/465585 1.html; City of Hillsboro, Oregon Transportaon Ulity Fee, hp://www.ci.hillsboro.or.us/TUF/Default.aspx These two arˆcles address the issue of transportaˆon uˆlity fees (TUF). Transportaˆon uˆlity fees have been imposed at the municipal level to help pay for the maintenance and operaˆon of local roadways. The fees are based on how much traffic a parˆcular land use generates on the local infrastructure. The first arˆcle discusses how the fees have been imposed in ten jurisdicˆons, including some that have been challenged in court, with both posiˆve and negaˆve outcomes. The arˆcle provides guidance on structuring a successful TUF. The second arˆcle provides details about a TUF imposed in Hillsboro, Oregon, which is used for local road repairs. The arˆcle describes how the TUF is calculated for each land use. 20. Smith, J. J. and T. A. Gihring, with T. Litman, Financing Transit Systems Through Value Capture: An Annotated Bibliography, Victoria Transport Policy Instute, December 30, 2009 This document provides a comprehensive, annotated bibliography of the theory and pracˆce of various value capture techniques for financing public transit infrastructure. The report documents several studies that a‘empt to quanˆfy the impacts of transit service on property values, and shows that transit o’en leads to increases in values within ¼ mile of a staˆon. Tools for value capture that are discussed in the sources listed include land rents, joint development, sale of development sites, privaˆzaˆon of development, higher property taxes for properˆes within the vicinity of transit, and special assessment districts.