Matthew PreislerMarch 3, 2011

Land and Revenue Development Strategies

Realize the Highest and Best Use of Airport Property.

• Operationally

• Financially

• Economically

AIRPORT DEVELOPMENT

ACRP GUIDEBOOK

Guidebook on Best Management Practices for Leasing and Developing Airport Property

• Establish benchmarks and best practices based on successful airport development projects.

• Develop a guidebook for use in the development of leasing, property management, and development agreements.

• Make it applicable to airports of diverse size and complexity.

CASE STUDY APPROACH• Total of 10 Case Study Projects

• 2 at Large-hub airports• 2 at Medium-hub airports• 2 at Small-hub airports• 2 at Non-hub airports• 2 at General aviation airports

• Criteria• Stimulated economic activity• Created revenue for the airport sponsor• Employed a diversity of innovative alliances / stakeholders• Utilized creative / innovative financing methods• Optimized public and private investment

CASE STUDY PROJECTS

• Albany International – HondaJet Sales and Maintenance

• Baton Rouge Metropolitan – Coca-Cola Plant

• Coastal Carolina Regional – Tidewater Air FBO

• Collin County Regional – EDS Corporate Hangar

• George Bush Intercontinental – Consolidated Rental Car Facility

• Monroe County – Hangars (Innovative Lease Structure)

• New Bedford Regional – Bridgewater State College Flight Training

• Pittsburgh International – Clinton Commerce Park

• Tampa International – PEMCO MRO

• Ted Stevens-Anchorage International – Lynxs Alaska CargoPort

CHALLENGE

Synthesize What We Learned!• Common Tools.

• Common Partners.

• Common Approaches.

• Common Success Factors.

TEMPLATE FOR SUCCESS

• Strategic Planning • Understand the Airport’s users, demand, and role.• Identify how the Airport ties into the economic fabric of

the community.

• Solid “Foundational” Documents• Planning, Leasing, and Financial

• STAKEHOLDERS!!! - Cast the Net Far and Wide.

STRATEGIC PLANNING GOALS

• Identify target development.• Aeronautical use• Non-Aeronautical use

• Prioritize opportunities.

• Establish a land use policy designed to accommodate target development.

• Engage Stakeholders!

STRATEGIC PLANNING

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Airport Overview:SWOT Analysis

Airport Overview:Operations & Assets

Catchment & Competition

Align Airport Goals and Objectives

Airport Opportunity Profile

Airport Market Area Analysis

Define Target Market: Geographic, Functional

Market Area Economic and Demographic Profile

Identify and Engage Stakeholders

Airport Demand Profile

Airport Business Plan Analysis

Strategic Business Plan

Identify Target Development:

Aeronautical and Non-Aeronautical

Best Practices: Funding, Incentives and Lease

Structure

Establish Land Use Policy : Accommodate

Development Opportunities

UNDERSTANDING THE AIRPORT

• Airport Infrastructure and Assets

• Current and Potential Users

• Identify Competition• Geographic• Functional

• Define the Airport Market Area – Catchment Area

UNDERSTANDING THE MARKET

• Economic and Demographic Overview of the Market AreaKey business and industry in the areaPopulation, Employment, Income,

Education

• Current and Potential Airport Demand DriversAviation Business and IndustrialCommunity Development/Goals

FOUNDATIONAL DOCUMENTS

• Strategic goals must be reflected in Planning documents.

• Ensure Land Use Plan, Building Standards and Zoning Ordinances Support Airport Vision and Direction.• Airport Master Plan• Land Use Plan• Airport Policies and Business Practices• Rules and Regulations / Building Standards• Rates and Charges / Fiscal Policy• Minimum Standards for Airport Development

• Who Should They Include?

• Airport Users and Tenants• Economic Development Agencies• Chambers of Commerce• FAA • Local Government• State Government• Developers• Community Organizations• Colleges and Universities• Anyone Else…

STAKEHOLDERS – WHO?

STAKEHOLDERS – WHY?

• What do They Provide?

• Advocacy

• Expertise

• Finance and Funding

• Incentives

• Cooperation

DEVELOPMENT PITFALLS

• Grant Assurances• Lease Term• Reversion• Right of First Refusal versus Non-Compete Clauses

• Financial Sustainability of the Airport versus Economic Development Potential• Airport versus Community Benefit

• Aeronautical versus Non-Aeronautical Use

Thank You.