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Attracting Investment at General Aviation Airports Through PublicâPrivate Partnerships A Synthesis of Airport Practice Jeffrey D. Borowiec Nicolas D. Norboge Jacqueline A. Kuzio Texas a&M TransporTaTion insTiTuTe College Station, TX 2019 Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation â¢ Maintenance and Preservation â¢ Finance A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP SYNTHESIS 94
ACRP SYNTHESIS 94 Project 11-03, Topic S01-17 ISSN 1935-9187 ISBN 978-0-309-48056-7 Library of Congress Control Number 2019944474 Â© 2019 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FRA, FTA, Office of the Assistant Secretary for Research and Technology, PHMSA, or TDC endorsement of a particular product, method, or practice. 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Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Cooperative Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon- sored by the Federal Aviation Administration (FAA). ACRP carries out applied research on problems that are shared by airport operating agen- cies and not being adequately addressed by existing federal research programs. ACRP is modeled after the successful National Cooperative Highway Research Program (NCHRP) and Transit Cooperative Research Program (TCRP). 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ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research organi- zations. Each of these participants has different interests and responsibili- ties, and each is an integral part of this cooperative research effort. Research problem statements for ACRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by identifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel appointed by TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport professionals, the intended users of the research products. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing coop- erative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended users of the research: airport operating agencies, service pro- viders, and academic institutions. ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties; industry associations may arrange for workshops, training aids, field visits, webinars, and other activities to ensure that results are implemented by airport industry practitioners.
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C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP SYNTHESIS 94 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Marci A. Greenberger, Manager, Airport Cooperative Research Program Thomas Helms, Senior Program Officer Stephanie L. Campbell, Senior Program Assistant Eileen P. Delaney, Director of Publications Natalie Barnes, Associate Director of Publications Ann E. Petty, Senior Editor ACRP PROJECT 11-03 PANEL Joshua D. Abramson, Easterwood Airport Management, College Station, TX (Chair) Debbie K. Alke, Montana DOT, Helena, MT (retired) Gloria G. Bender, TransSolutions, LLC, Fort Worth, TX David A. Byers, Quadrex Aviation, LLC, Melbourne, FL David N. Edwards, Jr., GreenvilleâSpartanburg Airport District, Greer, SC Brenda L. Enos, Burns & McDonnell, Kansas City, MO Linda Howard, Independent Aviation Consultant, Bastrop, TX Patrick W. Magnotta, FAA Liaison Matthew J. Griffin, Airport Consultants Council Liaison Liying Gu, Airports Council InternationalâNorth America Liaison Adam Williams, Aircraft Owners & Pilots Association Liaison Christine Gerencher, TRB Liaison TOPIC S01-17 PANEL Debra Braga, Jacksonville Aviation Authority, Jacksonville, FL Curt G. Castagna, Aeroplex/Aerolease Group, Long Beach, CA Michael J. Clow, AFCO AVPorts Management, LLC, Newark, NJ Amanda Hill, MaesAwyr, LLC Airport Planning + Development, Atlanta, GA Jeff Kadlec, Yellowstone AirportâState of Montana, West Yellowstone, MT Janet K. Tinoco, EmbryâRiddle Aeronautical University, Daytona Beach, FL Kathleen Brockman, FAA Liaison Liying Gu, Airports Council InternationalâNorth America Liaison Christine Gerencher, TRB Liaison
ABOUT THE ACRP SYNTHESIS PROGRAM Airport administrators, engineers, and researchers often face problems for which information already exists, either in documented form or as undocumented experience and practice. This infor- mation may be fragmented, scattered, and unevaluated. As a consequence, full knowledge of what has been learned about a problem may not be brought to bear on its solution. Costly research findings may go unused, valuable experience may be overlooked, and due consideration may not be given to recommended practices for solving or alleviating the problem. There is information on nearly every subject of concern to the airport industry. Much of it derives from research or from the work of practitioners faced with problems in their day-to-day work. To provide a systematic means for assembling and evaluating such useful information and to make it available to the entire airport community, the Airport Cooperative Research Program authorized the Transportation Research Board to undertake a continuing project. This project, ACRP Project 11-03, âSynthesis of Information Related to Airport Practices,â searches out and synthesizes useful knowl- edge from all available sources and prepares concise, documented reports on specific topics. Reports from this endeavor constitute an ACRP report series, Synthesis of Airport Practice. This synthesis series reports on current knowledge and practice, in a compact format, without the detailed directions usually found in handbooks or design manuals. Each report in the series provides a compendium of the best knowledge available on those measures found to be the most successful in resolving specific problems. FOREWORD By Thomas J. Helms, Jr. Staff Officer Transportation Research Board The focus of this report is on the use of publicâprivate partnerships to attract investment at general aviation airports. Over the past 5 years, the private sector has been assuming a larger role in the fund- ing of general aviation airport development projects. This trend is expected to continue. This study is based on information acquired through literature review; survey results from 26 airports participating in the study, representing a range of geographic locations and airport categories; and interviews with experts in airport privatization, airport law, and airport management/development. Results of the literature review and survey are presented in this short report. Case examples representing in-depth interviews are presented in Chapter 4 of the report. Jeffrey Borowiec, Nicolas Norboge, and Jacqueline A. Kuzio, Texas A&M Transportation Institute, College Station, synthesized the information and wrote the report. The members of the topic panel are acknowledged on page iv. This synthesis is an immediately useful document that records the practices that were acceptable within the limitations of the knowledge available at the time of its preparation. As progress in research and practice continues, new knowledge will be added to that now at hand.
1 Summary 3 Chapter 1 Introduction 4 Background 6 Study Approach 7 Chapter 2 Private Investment at General Aviation Airports: A Review of the Literature 7 History and Development of PPPs in Transportation Infrastructure 7 Principles of PPPs for Real Estate and Economic Development 8 Common PPP Delivery Methods in U.S. Aviation Industry 13 Airport PPPs in Context 15 Common General Aviation Airport Revenue Stream and Financing Methods 15 General Aviation Airport Funding 17 General Aviation Airport Revenue Streams 17 Airport Management Contracts 18 Goals, Objectives, and Benefits 18 Advantages and Disadvantages 19 Regulatory Considerations and Compliance 20 Airport Management Companies 21 AFCO/AvPORTS Management, LLC 21 American Airports Corporation 22 Texas Aviation Partners 23 TBI Airport Management, Inc. (Airports Worldwide) 24 Summary 25 Chapter 3 Industry Practices for Attracting Investment at General Aviation Airports: Survey Results 25 Methodology 28 Consolidated Survey Results 32 Chapter 4 General Aviation Airport State of the Practice: Case Examples 32 Fort Worth Meacham International Airport 32 Overview 32 Key Stakeholders 34 Contracting, Lease, and Financial Considerations 34 Benefits to the Airport 34 Lessons Learned C O N T E N T S
35 Crater LakeâKlamath Regional Airport 35 Overview 36 Key Stakeholders 36 Contracting, Lease, and Financial Considerations 36 Benefits to the Airport 37 Lessons Learned 37 McKinney National Airport 37 Overview 38 Key Stakeholders 38 Contracting, Lease, and Financial Considerations 39 Benefits to the Airport 39 Lessons Learned 40 Morristown Municipal Airport 40 Overview 41 Key Stakeholders 42 Contracting, Lease, and Financial Considerations 42 Benefits to the Airport 43 Lessons Learned 43 Cecil Airport 43 Overview 44 Key Stakeholders 44 Contracting, Lease, and Financial Considerations 45 Benefits to the Airport 46 Lessons Learned 47 Chapter 5 Conclusions and Future Research 47 Findings 48 Future Research 50 References 52 Appendix A Screening Survey Questions 55 Appendix B Survey Questionnaire 64 Appendix C Survey Respondents and Interviewees Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at www.trb.org) retains the color versions.