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APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT <br />AIRPORT OVERVIEW <br /> <br />Airport Strategic Business Plan, 07/26/2021 24 <br />AERONAUTICAL REVENUE SOURCES <br /> Aeronautical Land and Improvement Rents: In addition to the primary function of <br />operating and managing the airfield infrastructure of the airport (e.g., runways, taxiways, <br />and associated aprons), most airport sponsors can be, and should be, considered a real <br />estate management company. The single greatest asset that an airport sponsor must <br />generate revenues is the land surrounding the airfield. The highest and best use of this <br />land is aeronautical activities. Therefore, the single greatest revenue funding sources for <br />an airport are typically the leasing of airport land and/or improvements for aeronautical <br />use. In Figure 2, examples of aeronautical land and improvement uses are identified. <br />Figure 2: Airport Land and Improvements  <br /> <br />Following are descriptions of the available models for airport sponsors to generate revenue <br />funding sources from the “leasing” of airport land. <br /> Traditional Lessor Model: Real estate development at airports typically follow the <br />traditional model whereby the airport sponsor enters a land lease for a set term and for <br />a market land rent. Although this approach offers the airport a steady and predictable <br />income stream, any opportunity to share in the more lucrative sublessee rent is left <br />exclusively for the developer. When an airport sponsor is taking no risk in a <br />development project, the traditional lessor/lessee model approach is appropriate. <br /> Equity Participation Model: In situations where private enterprise may not be in a <br />position to make an investment or the opportunity does not return a sufficient return on <br />investment for the private enterprise, the airport sponsor could swap a portion of the <br />land rent in exchange for a share of future revenue streams. In addition, when <br />entrepreneurial airport sponsors are willing to assume some development risk, they can <br />have the opportunity to enhance cash flow from development projects by contributing <br />the land in return for retaining an equity stake in the developed property. Contributing <br />an asset (such as land) in exchange for equity is referred to as equity participation. <br />FAA Improvements  <br />and Facilities <br />•Control tower <br />•Approach equipment <br />•Navigation  <br />equipment <br />FBO Improvements  <br />and Facilities <br />•General aviation  <br />terminal building <br />•Offices <br />•Shops <br />•Storage  <br />•Aircraft hangars <br />•Ramp <br />•Vehicle parking areas <br />•Fuel storage <br />SASO Improvements  <br />and Facilities <br />•Aircraft maintenance  <br />and repair <br />•Avionics and  <br />instruments <br />•Aircraft rental <br />•Flight training <br />•Aircraft charter <br />•Aircraft management <br />•Specialized services <br />Aircraft Storage  <br />Improvements and  <br />Facilities <br />•Ramp (including  <br />tiedown spaces) <br />•Shadeports <br />•T‐hangars <br />•Executive/box  <br />hangars <br />•Community hangars <br />•Corporate hangars <br />•Maintenance hangars