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 ?

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


  • Bring Housing on to the Airport???

    • Airport Homes = Future Access Restrictions

    • Airport Homes = Vehicle and Pedestrian Deviations


  • 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


Balancing the Federal and LocalInterest


  • Balanced Approach

  • Define the Noise Problem


  • Balanced Approach

  • Define the Noise Problem

  • Identify Non-Restrictive Measures Sponsor Has or Could Implement


  • 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


  • 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


Rule of Unintended Consequences Stage 2 Ban

Sabreliner “Out”


Rule of Unintended Consequences

Stage 2 Ban

Mig 17 “In”


Rule of Unintended Consequences Stage 2 Ban

A-3 “In”


Airport Real Estate Valuations


Third Party Developed FacilitiesFair Market Rent For The Developer


Financial OfferAirport Paid Greater of!

Q Minimum Guaranteed Ground Rental OR

Q Percentage Bid of Gross Rentals


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

  • Market or Cost Approach Rental


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


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 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 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 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


Preserving Airport Rights and Powers

What is wrong with this picture?


Airline Service Incentives Everyone Wants Low-cost Service


Sarasota Petition to Subsidize Airline Service


FAA Revenue Use Policy Prohibits a Subsidy with Airport Revenue


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


The Beauty of Flight


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