What s new in airport compliance
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What’s New In Airport Compliance ? PowerPoint PPT Presentation


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What’s New In Airport Compliance ?. Charles C. Erhard. Residential Development On Federally Obligated Airports ?. Bring Housing on to the Airport???. Airport Home Complete with Hot-Tub!. Bring Housing on to the Airport??? Airport Homes = Future Access Restrictions.

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What’s New In Airport Compliance ?

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What s new in airport compliance

What’s New In Airport Compliance ?

Charles C. Erhard


Residential development on federally obligated airports

Residential Development On Federally Obligated Airports ?


What s new in airport compliance

Bring Housing on to the Airport???


What s new in airport compliance

Airport Home

Complete with Hot-Tub!


What s new in airport compliance

  • Bring Housing on to the Airport???

    • Airport Homes = Future Access Restrictions


What s new in airport compliance

  • Bring Housing on to the Airport???

    • Airport Homes = Future Access Restrictions

    • Airport Homes = Vehicle and Pedestrian Deviations


What s new in airport compliance

  • Bring Housing on to the Airport???

    • Airport Homes = Future Access Restrictions

    • Airport Homes = Vehicle and Pedestrian Deviations

    • Airport Homes = Lost Credibility to Control

    • Off-Airport Land Use


Balanced approach in evaluating access restrictions

Balanced Approach in Evaluating Access Restrictions


Balancing the federal and local interest

Balancing the Federal and LocalInterest


What s new in airport compliance

  • Balanced Approach

  • Define the Noise Problem


What s new in airport compliance

  • Balanced Approach

  • Define the Noise Problem

  • Identify Non-Restrictive Measures Sponsor Has or Could Implement


What s new in airport compliance

  • Balanced Approach

  • Define the Noise Problem

  • Identify Non-Restrictive Measures Sponsor Has or Could Implement

  • Assess a Full Range of Non-Restrictive and Restrictive Measures


What s new in airport compliance

  • Balanced Approach

  • Define the Noise Problem

  • Identify Non-Restrictive Measures Sponsor Has or Could Implement

  • Assess a Full Range of Non-Restrictive and Restrictive Measures

  • Restrictions Are Last Resort Measures


Pre selected restriction by aircraft class or type stage 2 ban unjustly discriminatory

Pre-selected Restriction by Aircraft Class or Type (Stage 2 Ban)Unjustly Discriminatory


What s new in airport compliance

Rule of Unintended Consequences Stage 2 Ban

Sabreliner “Out”


What s new in airport compliance

Rule of Unintended Consequences

Stage 2 Ban

Mig 17 “In”


What s new in airport compliance

Rule of Unintended Consequences Stage 2 Ban

A-3 “In”


Airport real estate valuations

Airport Real Estate Valuations


Third party developed facilities fair market rent for the developer

Third Party Developed FacilitiesFair Market Rent For The Developer


Financial offer airport paid greater of

Financial OfferAirport Paid Greater of!

Q Minimum Guaranteed Ground Rental OR

Q Percentage Bid of Gross Rentals


Calculation of minimum guaranteed ground rental

Calculation of MinimumGuaranteed Ground Rental

Appraisal of Site$5.00 per sq. ft.

CAP Rate7%

Ground Rental Rate$5.00 x 7% = $0.35 per sq. ft.

Site Size400,000 sq. ft.

Minimum Guarantee$140,000 per year


Rent for the airport s facilities

Rent for the Airport’s Facilities


Rent for the airport s facilities1

Rent for the Airport’s Facilities

  • Market or Cost Approach Rental


What s new in airport compliance

Third Party Developed FacilitiesDeveloper Facilities Revert to the Airport“Beware of the Vice-President of Extensions”


The airport s residual interest has value

The Airport’s Residual Interest Has Value

Ground Lease Terms 30 years

Ground Lease Rent to Airport $140,000 per yr.

Remaining Useful Life After 30 years 20 years

Extend Ground Lease or Take Building?


The airport s residual interest has value1

The Airport’s Residual Interest Has Value

Rentable Square Feet 250,000 sq. ft.

Rented Square Feet (occupancy)200,000 sq. ft.

Full Service Rental Rate $15 per sq. ft./yr.

Gross Rental Income$3.0 million/yr.


The airport s residual interest has value2

The Airport’s Residual Interest Has Value

Gross Rental Income $3.0 million per yr.

Operating Expense and Reserves$1.5 million per yr.

($6 per sq. ft./yr.)

Operating Income $1.5 million per yr.

Extend Ground Lease or Take Building?


The airport s residual interest has value3

The Airport’s Residual Interest Has Value

Extend Ground Lease or Take Building?

Ground Lease ($140,000/yr.)Take Building ($1.5 million/yr.)

After 20 years ($2.8 million) After 20 years ($30 million)

A $27.2 million Decision


What s new in airport compliance

Preserving Airport Rights and Powers

What is wrong with this picture?


Airline service incentives everyone wants low cost service

Airline Service Incentives Everyone Wants Low-cost Service


Sarasota petition to subsidize airline service

Sarasota Petition to Subsidize Airline Service


Faa revenue use policy prohibits a subsidy with airport revenue

FAA Revenue Use Policy Prohibits a Subsidy with Airport Revenue


Threshold question is it an operating cost of the airport or community economic development

Threshold Question — Is It An Operating Cost of the Airportor Community Economic Development


What s new in airport compliance

The Beauty of Flight


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