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From page 53... ... 53 C h a p t e r 4 Self-Assessment Toolkit 4.1 Introduction This Self-Assessment Toolkit provides the reader with information and then asks questions relating to: Airport ownership Management structure Business activity Planning The answers to the questions in this toolkit generate a self-assessment that will later be used to guide an evaluation of development options. The text and checklist sections are presented in an alternating sequence so that questions about a topic immediately follow the explanation. Read the entire page →
From page 54... ... 54 Generating revenue from Commercial Development On or adjacent to airports 4.2 Airport Ownership KNOW Airport ownership can be private or public, but several variations exist in both sectors regarding the form of ownership. Public airports can be owned by a: State County Municipality Independent authority Privately owned airports can be held by: Corporations Partnerships Families Individuals Why is ownership significant? Read the entire page →
From page 55... ... Self-assessment toolkit 55 HAVE The questions in this section can be used to identify the airport's ownership structure. The complete Airport Ownership Checklist is provided in Appendix A, "Chapter 4 Checklists," and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Read the entire page →
From page 56... ... 56 Generating revenue from Commercial Development On or adjacent to airports DO Use the information identified in this section to consider benefits and limitations of the airport's ownership structure and access to financial resources as it relates to on-airport development initiatives. Although it will not be possible at this point to answer specific questions about the airport's ability to make decisions or access financial capital, these characteristics will be important references through the toolkits as a development plan and costs are better defined. Read the entire page →
From page 57... ... Self-assessment toolkit 57 SOUND BITE The property development department is understaffed, which adds to the challenges of attracting development. 4.3 Management Structure/Report/Decision-Making KNOW This set of checklist items looks for more in-depth information, building on the ownership question above. Read the entire page →
From page 58... ... 58 Generating revenue from Commercial Development On or adjacent to airports provide some guidance, but other state legislation may also apply. In some states, for example, public-private partnerships may not be permitted and thus should be investigated on a case-by-case basis. Read the entire page →
From page 59... ... Self-assessment toolkit 59 4.4 FAA Grant Obligations KNOW Airports in the National Plan of Integrated Airport Systems (NPIAS) are eligible to receive grants under the FAA Airport Improvement Program (AIP) Read the entire page →
From page 60... ... 60 Generating revenue from Commercial Development On or adjacent to airports Non-aeronautical land Yes No Notes Identified as such on ALP? Released by FAA? Read the entire page →
From page 61... ... Self-assessment toolkit 61 DO The results of this exercise help guidebook users understand how grant obligations currently apply to airport property and how they may impact development choices and timelines. This information could be used to inform later decisions about land uses and other development criteria. Read the entire page →
From page 62... ... 62 Generating revenue from Commercial Development On or adjacent to airports SOUND BITE The airport is currently privately owned and not federally obligated, but the airport will require extensive future federal aid to correct airside infrastructure deficiencies. 4.5 The ALP and the Airport Master Plan KNOW Research and case studies indicate that successful airport management and development is contingent on careful planning. Read the entire page →
From page 63... ... Self-assessment toolkit 63  Facilities needed to meet deficiencies  Evaluation of alternatives  Capital improvement programming  Land uses on- and off-airport A master planning effort usually involves stakeholder input, and is a way to engage the surrounding community and coordinate goals of the airport with local economic development priorities. FAA provides guidance for both Airport Master Plans and ALPs in AC 150/5070-6B, Airport Master Plans. Read the entire page →
From page 64... ... 64 Generating revenue from Commercial Development On or adjacent to airports PLANNING YEAR HORIZON? Does the plan include strategies for the short term (5 years) Read the entire page →
From page 65... ... Self-assessment toolkit 65 NOISE CONTOURS? Noise often can be a contentious issue between the airport and the community. Read the entire page →
From page 66... ... 66 Generating revenue from Commercial Development On or adjacent to airports DO The answers from this section of the toolkit can help guidebook users understand the current status of the airport's ALP or Airport Master Plan and the information that is available through these resources. This evaluation will also help to identify if there is a need to update the planning documents. Read the entire page →
From page 67... ... Self-assessment toolkit 67 SOUND BITE 4.6 Airport Strategic Business Plan/Budgeting Process KNOW Successful planning for both airport business and real estate development requires a long-term view. Dependence on a short-term view may result in selling random parcels to meet budget gaps, which does not result in a cohesive development or long-term, predictable income. Read the entire page →
From page 68... ... 68 Generating revenue from Commercial Development On or adjacent to airports STRATEGIC BUSINESS PLAN? Does the airport have a Strategic Business Plan? Read the entire page →
From page 69... ... Self-assessment toolkit 69 MAJOR CAPITAL IMPROVEMENTS PLANNED? What facilities will be improved? Read the entire page →
From page 70... ... 70 Generating revenue from Commercial Development On or adjacent to airports Airport income proportions Notes Revenue breakdown by source? How might current proportions change? Read the entire page →
From page 71... ... Self-assessment toolkit 71 4.7 Identifying Customer Base/Revenue Sources KNOW Identifying the sectors of an airport's customer base is an important component of a Strategic Business Plan. This exercise can help to define priorities and provide focus for growing airport business revenue. Read the entire page →
From page 72... ... 72 Generating revenue from Commercial Development On or adjacent to airports DO Compare the information in the business plan (if available) with the information gathered in the toolkit/checklist to create a comprehensive picture of current airport business segments. Read the entire page →
From page 73... ... Self-assessment toolkit 73 Dominant industries/companies Notes Percentage of airport revenue Industry/industries in area? Employer(s) Read the entire page →
From page 74... ... 74 Generating revenue from Commercial Development On or adjacent to airports HOW MUCH AIRPORT REVENUE ATTRIBUTABLE? For the purposes of this guidebook, the measure of a dominant industry or company is the percentage of airport revenue that can be attributed to it. Read the entire page →
From page 75... ... Self-assessment toolkit 75 4.9 Business Trends and Projections for Airport Revenue KNOW Just as important as identifying major business segments is reviewing their existing and continuing or changing role in the airport's revenue stream. Major business sectors can provide the rationale for a particular land use plan or development project if they are growing or have the potential to grow with improved airport facilities. Read the entire page →
From page 76... ... 76 Generating revenue from Commercial Development On or adjacent to airports MAJOR INDUSTRY TREND? What is the trend of airport revenue from the dominant industry (if any) Read the entire page →
From page 77... ... Self-assessment toolkit 77 DO Use the information collected regarding business trends and projections to anticipate future trends of business segments in the area and the associated airport revenue. If market segments are expected to grow, that is positive for airport development plans. Read the entire page →
From page 78... ... 78 Generating revenue from Commercial Development On or adjacent to airports 4.10 Funds for Development KNOW The development process, including planning, engineering, and approvals, can be lengthy and expensive. Before embarking on a project, the airport should identify the funding available to dedicate to this process, the origin of the funds, and the likelihood that funding will be available as needed over time. Read the entire page →
From page 79... ... Self-assessment toolkit 79 SOURCE OF FUNDS: PRIVATE, SUBSIDY, OPERATING INCOME? If the current budget does not have funds that could be specifically dedicated to development, are fee increases permissible to support development? Read the entire page →
From page 80... ... 80 Generating revenue from Commercial Development On or adjacent to airports is 4.11 Risk Tolerance for Development Projects KNOW Real estate development always involves risk. In this conversation, risk refers to the possibility that a real estate development may lose money or may not produce revenue according to the desired schedule. Read the entire page →
From page 81... ... Self-assessment toolkit 81 IS GUARANTEED INCOME IMPORTANT? The priority for the airport may be to create a fixed income source that will fluctuate minimally over time, with reliability and long-term leases preferred. Read the entire page →
From page 82... ... 82 Generating revenue from Commercial Development On or adjacent to airports strategy may be limited to subdividing parcels of land for sale or lease, aiming for reliable, stable revenue. If the risk tolerance is higher and the sponsor wants the opportunity to benefit from a good market, a strategy of percentage rents or equity participation with a partner may be chosen. Read the entire page →
From page 83... ... Self-assessment toolkit 83 4.12 Development Goals KNOW The self-assessment elements explored so far can be combined to reach a conclusion regarding the motivation of the airport for exploring development. The airport's motivation is a critical part of the self-assessment, because it is important for the airport to have a realistic view of what development can or cannot accomplish for revenue enhancement. Read the entire page →
From page 84... ... 84 Generating revenue from Commercial Development On or adjacent to airports customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Read the entire page →
From page 85... ... Self-assessment toolkit 85 DO The information gathered by answering the questions in this section of the toolkit can help guidebook users to clearly express the airport's development goals both qualitatively and quantitatively. If the answers to these questions show that interest in development is motivated by an objective to provide additional revenue over time and not to respond to an immediate revenue shortfall, that presents a promising scenario for pursuing development. Read the entire page →
From page 86... ... 86 Generating revenue from Commercial Development On or adjacent to airports SOUND BITE Citizens of the host municipality have a historic mistrust of what happens at the airport. SOUND BITE The city extended water and sewer to the industrial park area using a state revolving loan fund. Read the entire page →
From page 87... ... Self-assessment toolkit 87 HAVE Developing the answers to this part of the self-assessment will help guidebook users characterize and consider the existing relationships between the airport and key stakeholders. The complete Community Context Checklist is provided in Appendix A, "Chapter 4 Checklists," and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Read the entire page →
From page 88... ... 88 Generating revenue from Commercial Development On or adjacent to airports ARE THE AIRPORT'S GOALS ALIGNED WITH THOSE OF THE CITY AND REGION? Do local and regional plans identify or allow for airport development? Read the entire page →
From page 89... ... Self-assessment toolkit 89 DO If the answers to the questions in this section show active involvement with and support from the community, the airport can count that as a benefit to achieving a successful development project. If the answers show little involvement or poor relations, the airport should consider efforts to improve relationships and communication. Read the entire page →
From page 90... ... 90 Generating revenue from Commercial Development On or adjacent to airports 4.14 Summary What should be the result of the self-assessment? The self-assessment should lead the airport sponsor to one of two conclusions, "Stop" or "Go." The first is a determination that other strategies for revenue enhancement could be less expensive, more rewarding, or less risky. Read the entire page →

From page 53...

... 53 C h a p t e r 4 Self-Assessment Toolkit 4.1 Introduction This Self-Assessment Toolkit provides the reader with information and then asks questions relating to: Airport ownership Management structure Business activity Planning The answers to the questions in this toolkit generate a self-assessment that will later be used to guide an evaluation of development options. The text and checklist sections are presented in an alternating sequence so that questions about a topic immediately follow the explanation.