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What’s New In Airport Compliance ? PowerPoint Presentation
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What’s New In Airport Compliance ?

What’s New In Airport Compliance ?

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What’s New In Airport Compliance ?

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  1. What’s New In Airport Compliance ? Charles C. Erhard

  2. Residential Development On Federally Obligated Airports ?

  3. Bring Housing on to the Airport???

  4. Airport Home Complete with Hot-Tub!

  5. Bring Housing on to the Airport??? • Airport Homes = Future Access Restrictions

  6. Bring Housing on to the Airport??? • Airport Homes = Future Access Restrictions • Airport Homes = Vehicle and Pedestrian Deviations

  7. 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

  8. Balanced Approach in Evaluating Access Restrictions

  9. Balancing the Federal and LocalInterest

  10. Balanced Approach • Define the Noise Problem

  11. Balanced Approach • Define the Noise Problem • Identify Non-Restrictive Measures Sponsor Has or Could Implement

  12. 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

  13. 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

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

  15. Rule of Unintended Consequences Stage 2 Ban Sabreliner “Out”

  16. Rule of Unintended Consequences Stage 2 Ban Mig 17 “In”

  17. Rule of Unintended Consequences Stage 2 Ban A-3 “In”

  18. Airport Real Estate Valuations

  19. Third Party Developed FacilitiesFair Market Rent For The Developer

  20. Financial OfferAirport Paid Greater of! Q Minimum Guaranteed Ground Rental OR Q Percentage Bid of Gross Rentals

  21. Calculation of MinimumGuaranteed Ground Rental Appraisal of Site $5.00 per sq. ft. CAP Rate 7% Ground Rental Rate $5.00 x 7% = $0.35 per sq. ft. Site Size 400,000 sq. ft. Minimum Guarantee $140,000 per year

  22. Rent for the Airport’s Facilities

  23. Rent for the Airport’s Facilities • Market or Cost Approach Rental

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

  25. 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?

  26. 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.

  27. 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?

  28. 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

  29. Preserving Airport Rights and Powers What is wrong with this picture?

  30. Airline Service Incentives Everyone Wants Low-cost Service

  31. Sarasota Petition to Subsidize Airline Service

  32. FAA Revenue Use Policy Prohibits a Subsidy with Airport Revenue

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

  34. The Beauty of Flight