Generating Revenue from Commercial Development On or Adjacent to Airports (2017)

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91 C h a p t e r 5 Site Evaluation Toolkit 5.1 Introduction The Self-Assessment Toolkit focused on internal airport operations and management. Airport sponsors that have worked through that toolkit will have concluded with a determination that development does or does not present a reasonable opportunity for enhancing airport revenue. Assuming that the conclusion is affirmative, the next step is to complete the Site Evaluation Toolkit, which analyzes the attributes of the land under consideration for commercial development. Many possible scenarios apply in this instance: Land on or off the airport Land with and without airside or airport access Land that is—or is not—grant obligated The airport sponsor may have specific sections of property under consideration, or may be looking for an evaluation of all unutilized or underutilized property inside or outside the airport fence. In view of this variability, not all the criteria and checklist items in this toolkit may be relevant in every circumstance. Completion of the toolkit should be tailored to each airport’s specific situation. This chapter toolkit includes 14 checklist sections, which appear next to the explanations given in the text. In the header of each checklist section, the following icon is included as a reminder that complete copies of the 14 checklists are provided in Appendix B, “Chapter 5 Checklists,” and that customizable copies of the same checklists can be downloaded from the ACRP Research Report 176 webpage: The 14 checklists are: Airport Layout Plan (ALP) Status (With or Without Airport Master Plan) Land Availability Location and Access Physical Site Features Infrastructure—Sanitary Sewer Systems Infrastructure—Stormwater Systems Infrastructure—Water Infrastructure—Power/Telecom Surrounding Land Use

92 Generating revenue from Commercial Development On or adjacent to airports Regulatory Constraints/Permitting Market Conditions Workforce Attraction Local/Regional Context Development Incentive Programs The five tiers discussed in Chapter 2 can help to organize the selection and evaluation of the land being considered by providing a classification according to the level of FAA regulatory control. In this chapter, when the term development is used in coordination with the site evaluation, bear in mind that development can mean a host of options, ranging from simple to complex, including: Installing roads and utilities Subdividing parcels Getting site plan approvals Clearing and grading land Constructing buildings Land may be considered for uses directly related to aeronautical uses, such as air cargo operations. A broader set of potential commercial uses also could be explored, such as industrial, hotel, or office uses. Although the airport itself may be an attraction, the airport property must compete in the real estate marketplace with other non-airport sites to attract development interest. The site evaluation is necessary to identify the assets and challenges of the land, and determine how it stacks up competitively against other sites. Even when land is physically suitable for development, issues may arise with transportation access or sewer capacity, or the region may not be growing enough to create demand for new development. All of these topics are explored in this toolkit. Examination of the criteria in this toolkit will enable the airport sponsor to look at the property from a real estate perspective, reviewing important considerations for the feasibility of a commercial project. The criteria are detailed, but fall into a few general categories: Location—Urban, suburban, or rural, and the airport’s accessibility Physical features—The nature of the land in question; whether it slopes or if wet areas would interfere with development; whether it is open, wooded, or rocky Infrastructure—The state of transportation and utilities available or needed to serve new development Market factors—Not only vacancy rates and supply and demand, but also quality-of-life factors that could attract employers and employees to the local area, which is information critical to selecting the development type(s) and the target market Legal and regulatory factors—Legal constraints on the use of the land (which might be deal-breakers in some cases but in others may be overcome by certain strategies or actions) and government incentives, which may provide benefits

Site evaluation toolkit 93 Certain criteria may be identified in the course of the planning process. For example, the need for permits may not be completely evident until a concept has been designed. However, the likelihood of such permits may be assessed to a degree based on the land analysis. In addition, several criteria deal with technical information for which professional expertise would be beneficial. Such expertise can be obtained by working with a consultant or with a staff person with professional credentials. In this guidebook, situations for which professional expertise is needed are noted both in the language of the text and in using the consultant experience icon, as shown in the margin. Stop/Go Decision Format On completing the Site Evaluation Toolkit, airport sponsors will have gathered the information needed to reach a “Stop” or “Go” decision and conclude that either: Significant economic, political, financial, legal, or physical obstacles exist that would discourage development for the foreseeable future and indicate it would not be prudent to proceed—Stop. Land development is reasonably feasible, and no factors are apparent that would preclude proceeding to the next stage—Go. If the review lands somewhere in the middle, enough information should be available to decide whether the challenges can be addressed. If so, the development process can proceed. The planning team’s conclusions will depend to some degree on the risk tolerance identified in the Self-Assessment Toolkit. If a “Stop” decision is made due to circumstances that the airport cannot control, it is possible that those circumstances may change over time, in which case the information compiled in the site evaluation toolkit will provide a basis for another look in the future. If the airport elects to continue development planning, working through the site evaluation toolkit will highlight challenges that should be examined closely before significant commitments or investments are made. The exercise of completing this toolkit will also help the airport to work with outside experts and consultants. If the airport sponsor does not control the adjacent property it wishes to see developed, additional information can be found in Chapter 7, “Off-Airport Considerations and Revenue.”

94 Generating revenue from Commercial Development On or adjacent to airports KNOW The ALP has been defined and detailed in the Self-Assessment Toolkit (see Chapter 4); however, as an element in an Airport Master Plan—or if it is used as a master plan itself—the ALP acts as the departure point for development planning. Accordingly, it becomes the kickoff for the Site Evaluation Toolkit. The ALP/Airport Master Plan provides the basis for successively more detailed development plans. As confirmed by the case studies and interviews conducted for ACRP Project 03-39, detailed master planning yields many benefits for the airport and the development process. If the ALP contains current information about aeronautical and non-aeronautical uses, existing and future facilities and uses, and buffer areas and adjacent land uses, it can be used for development planning without additional review or approval. If information is incomplete or too general for planning purposes, an ALP update is recommended. For grant-obligated airports, it is essential to confirm that FAA has granted a land release for airport property planned for non-aeronautical use before making significant development investments. HAVE This checklist section is used to determine the status of the airport’s ALP as a tool for development planning. Some of the information needed can be transferred from the Self- Assessment Toolkit; however, most of this checklist is oriented to the development aspects of the ALP. The complete Status of ALP (With or Without Master Plan) Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Status of ALP (with or without Master Plan) FAA-APPROVED ALP? Does the airport have a current, FAA-approved ALP? Last updated? In what year was the ALP adopted/did it receive FAA approval? Land use plan adopted by airport ownership? Even if an ALP is not required by FAA, an airport sponsor or owner may find it beneficial to create and maintain one. ALP reflects current conditions? When an airport embarks on development planning, the ALP should be reviewed and updated if it is more than 3 years old or if conditions have changed on the airport since its creation. SOUND BITE 5.2 ALP The property has been released for non- aeronautical development but not for sale. Leasing provisions are a challenge to development.

Site evaluation toolkit 95 Status of ALP Notes FAA-approved? Last updated? Land use plan adopted by ownership? ALP reflects current conditions (within 3 years or less)? Airport Operations Area (AOA) identified? What areas are used for airport operations (“inside the fence”)? Content of the ALP—Short-Term and Long-Term Land Uses AERONAUTICAL USE? NON-AERONAUTICAL USE? Non-aeronautical land released by FAA? Has a land release procedure been completed? Has FAA granted a land release to allow the airport to use some land for non-aeronautical purposes? Adjacent land use identified? Are the land uses adjacent to the airport identified? What are they? Are they compatible with the land uses envisioned by the airport? Buffer requirements delineated? Is any land area reserved to function as a buffer to neighboring areas? Such land areas may include land acquired for noise mitigation following the completion of a Part 150 Noise Study. Uses identified for non-aeronautical land? Are non-aeronautical uses identified by general categories, or are specific uses listed? Short- and long-range airport expansion needs identified? Are there areas that could have interim uses but that will be needed for airport facilities in the future? Are they shown on the ALP? Existing and future aeronautical facilities identified? Does the ALP include accurate locations of the terminal, hangars, the Aircraft Rescue and Fire Fighting (ARFF) facility, and other facilities that will be used for airport operations and/or leased to private clients and generate revenue?

96 Generating revenue from Commercial Development On or adjacent to airports Content of ALP Check to select Notes Aeronautical uses? AOA identified? Short-range expansion needs identified? Long-range expansion needs identified? Existing facilities identified? Future facilities identified? Non-aeronautical uses? Non-aviation land released by FAA? Uses identified? General categories? Specific uses? Buffer requirements delineated? Adjacent land use identified? Community support Check to select Notes ALP publicly available? Plan shared with stakeholders? Plan addresses master plans of surrounding town and county? DO Based on the evaluation checklist, determine whether or not the ALP provides a solid departure point for development planning based on the following conditions: The ALP is current, and development strategies have been reviewed and approved by FAA and the airport sponsor in recent years. If the ALP is in good standing with regard to FAA approval, local approval, and review within the past 3 years, it should provide guidance for development planning without additional review or approval. If the ALP is out of date, if COMMUNITY SUPPORT? Publicly available? Is the ALP available to view on the airport’s website? Shared with stakeholders? Has the Airport Master Plan been circulated to economic development officials, the city, and the county or state? Addresses master plans of surrounding town and county? Does the ALP show that uses at the perimeter of airport-controlled land are compatible with adjacent property with respect to local zoning and master planning?

Site evaluation toolkit 97 If these conditions all apply, then the airport is well-positioned to move forward with development planning based on the ALP. If any shortcomings have been identified, the airport sponsor is advised to consider actions to strengthen the ALP before proceeding with development planning efforts. The ALP content will inform development planning decisions including short-term and long-term land uses. An up-to-date ALP identifies existing uses and development objectives for aeronautical and non-aeronautical land in both the short term and the long term. The typical long-term planning horizon is 20 years. If the ALP does not extend to the long-term horizon, either because it is out of date or because recent changes are not reflected in the document, this should be revisited with the airport sponsor and FAA before proceeding. The ALP has community support as a result of communication and outreach efforts. If the ALP has been made available publicly and shared with stakeholders, and if it presents a plan for development that is compatible with adjacent property, then there is a foundation for community support. If this dialogue has not begun, or if the airport is proposing uses that are not compatible with adjacent community plans, some initial conversation is encouraged at this stage to gain community support for airport development ideas. recent changes are not reflected, or if non-aeronautical lands planned for development have not been released by FAA, the ALPshould be updated and all issues revisited with the airport sponsor and the FAA before proceeding.

98 Generating revenue from Commercial Development On or adjacent to airports Aeronautical development Notes Size in acres? Contiguous area? Subdivision into parcels or smaller lots? On- or off-airport? Runway access? SOUND BITE 5.3 Land Availability KNOW How much land does the airport have to offer? Many developers or lessees are attracted to an airport location by the availability of open, reasonably affordable, unencumbered land. This factor topped many lists as the most important asset in the interviews and literature search for ACRP Project 03-39. The checklist in this section will enable guidebook users to review the acreage of land that can be offered for development, as well as identify property that may require resolution of restrictions before becoming part of a project. HAVE Using the five-tier concept presented in Chapter 2, identify the tier(s) applicable to the available land. Airport-owned land will be classified in Tier 1, Tier 2, and/or Tier 3. The complete Land Availability Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Aeronautical Development SIZE? How many acres would be available for development? ON- OR OFF-AIRPORT? Is the land inside or outside the AOA? CONTIGUOUS AREA? Does the land consist of one tract, or are several parcels in various locations? Are any of the parcels further subdivided into smaller lots? Can they reasonably be included in one Development Plan? RUNWAY ACCESS? Are the lots adjacent to the runway? Could access be provided to the runway? Non-Aeronautical Development SIZE? How many acres would be available for development? CONTIGUOUS AREA? Does the land consist of one tract, or are several parcels in various locations? Are any of the parcels further subdivided into smaller lots? Can they reasonably be included in one development plan? The airport is located 6 miles outside of the city core and the airport is the only area where there are large parcels of land for development.

Site evaluation toolkit 99 Non-aeronautical development Notes Size in acres? Contiguous area? Subdivision into parcels or smaller lots? On- or off-airport? Proximity to airport? Designated non-aeronautical on ALP? DESIGNATED AS NON-AERONAUTICAL ON ALP? Does the ALP already designate the land for non-aeronautical uses or for aeronautical and (future) non-aeronautical uses? If not, the ALP should be revised to show these land use categories. A land release must be completed before FAA will permit non-aeronautical development on airport property. ON- OR OFF-AIRPORT? Is the land inside or outside the airport boundary (airport ownership)? PROXIMITY TO AIRPORT? If outside, how far is it from the airport proper? Is the land adjacent to airport property or some distance away? Factors that Reduce Land Availability ENCUMBERED BY ANY EASEMENTS? Property surveys will show whether there are easements through the land parcel for utilities or access to the benefit of governmental agencies or third parties. This information is also important for the airport to know as part of planning for development because it may impact design and construction opportunities. CLEAR TITLE? Are there any clouds on the ownership of the land? A recent Title Report is probably available in the airport’s files. If not, a title company may be engaged to produce a new report. A prospective purchaser or ground lessee will likely order a report, but it is important for the airport sponsor to know the chain of title and any ownership disputes. OWNED BY AIRPORT SPONSOR? Does the airport sponsor own the property outright? Is it owned by a larger government entity? Is it owned by private investors? DEED RESTRICTIONS? The Title Report also will identify any recorded restrictions on the use of the property, access rights, environmental notices, or other issues. Deed restrictions are important information for the airport to know as part of planning for development, as such restrictions may impact design and construction opportunities.

100 Generating revenue from Commercial Development On or adjacent to airports DO Working through the checklist in this section of the toolkit will show the extent of land available for development and whether ownership or easement issues will have to be accommodated, or possibly eliminated, before proceeding with development plans to generate revenue. If the review shows a reasonable amount of land available for development for aeronautical or non-aeronautical use and does not reveal any major issues with ownership or encumbrances, then existing conditions are positive for on-airport development. If the review reveals a limited amount of land available for development and/or complicated restrictions on the land, the concept for creating revenue through on-airport development may have to change focus. In this guidebook, Chapter 7, “Off-Airport Considerations and Revenue,” suggests strategies for obtaining revenue benefits from land adjacent to the airport (Tier 4 and Tier 5). Availability reduction factors Yes No Notes Owned by airport sponsor? Clear title? Deed restrictions? Encumbered by easements?

Site evaluation toolkit 101 5.4 Location and Access KNOW It is often said that there are three criteria of real estate success: location, location, and location. This maxim is true for an airport development project. As a result, considering location is one of the first steps in examining the airport’s position in the real estate market. An airport development project will have to compete in the real estate market with many non-airport real estate projects to attract development interest. Potential tenants and developers will look for easy access to the site and egress from the site to the surrounding region. The availability of multiple modes of access (i.e., highways, railroad lines, and mass transit) is an advantage. Connection to urban, industrial, or other centers with likely customers for the new development, and access to residential areas for employees also are advantages. Conversely, limited accessibility and isolation can make the site less competitive. One question potential developers will likely ask is, “What is the transportation network?” Another question is, “What does it connect to the airport?” Transportation networks enhance the market position of airport development by providing connections to commercial markets and institutions that offer customers and suppliers for business operations. Also, when transportation networks provide access to a mix of housing choices, healthcare, and educational institutions that provide a high quality of life for employees, it is easier for businesses to attract and retain a quality workforce, which is an important location consideration. Gathering the answers to some of these questions will help guidebook users assess the airport’s market position related to access, and it may also provide material for future marketing strategies. HAVE The questions in this section of the toolkit address the airport’s current customer base and related trends to help identify existing conditions and potential development markets. The complete Location and Access Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Surface Transportation Connections ARTERIAL ROAD FRONTAGE? Does the site front on a major arterial road? SOUND BITE DISTANCE TO NEAREST INTERSECTION WITH HIGHWAY? If a highway interchange does not serve the airport directly, how far away is an interchange or intersection with a major highway? HIGHWAY INTERCHANGE ACCESS? Does a major highway (state or Interstate) serve the airport? Another important element for attracting commerce and industry is having neighbor- hoods and quality of life that appeal to corporate leader- ship and their families.

102 Generating revenue from Commercial Development On or adjacent to airports Surface transportation connections Check to select Notes Highway interchange access? If not, distance to nearest interchange? Arterial road frontage? Visibility from road frontage? Distance to city/town center? Access to regional centers? Multi-modal transportation service Yes No Notes Freight rail at airport? Port or rail cargo access? Rail or bus to airport? Distance to mass transit? Market Connections and Quality-of-Life Metrics ACCESS TO INDUSTRIAL CONCENTRATIONS? Are there transportation connections to industrial parks, plants, or corporate headquarters? How far away are they? ACCESS TO REGIONAL CENTERS? How far is the site from a major city such as a county seat, state capital, or other large city with a concentration of businesses and potential tenants? DISTANCE TO CITY OR TOWN CENTER? How far is the development site from a local downtown or urban center? VISIBILITY FROM ROAD FRONTAGE? Is the proposed development area visible from the road? Multi-Modal Transportation Service FREIGHT RAIL AT THE AIRPORT? Is there freight rail service at the airport? DISTANCE TO MASS TRANSIT? If bus or rail systems do not serve the airport site, how far away is the nearest station, terminal, or stop? PORT OR RAIL CARGO ACCESS? Is the site part of or close to a port facility? Is there a rail siding serving the airport? Serving the development site? RAIL OR BUS TO AIRPORT? Is commuter rail available for customers or employees? Bus service?

Site evaluation toolkit 103 Market connections/quality-of- life metrics Check to select Notes Access to industrial concentrations? Major residential areas nearby? Universities/colleges nearby? Hospitals/medical centers nearby? HOSPITALS? Are hospitals or medical research centers nearby? These institutions offer another support for retail and commercial development serving employees and visitors, as well as medical-oriented aviation activities. UNIVERSITIES? Are major educational institutions nearby? They can be a source of customers for the airport and also can support certain retail and hotel uses, provided they are accessible from the airport and development site. MAJOR RESIDENTIAL AREAS? Are there easy commuting distances from residential areas? Is the airport close to a mix of housing options? Are there gaps in the housing market (i.e., lack of workforce housing or lack of rental options)? DO Completing this checklist will show whether the development site is well situated to serve potential users. Based on the evaluation checklist, the airport sponsor can determine whether the airport’s location and access will likely provide a market strength or advantage to development on airport property, considering: If this review finds that surface transportation connections are in place and that there are connections from the land proposed for development to existing markets and community resources, the airport development is well-positioned from the perspective of location and access. If this review finds that the site is far from sources of customers and resources for employees and/or is difficult to access, commercial development may not be the best option for increasing airport revenue. Existing market connections to industry and institutions. Do these businesses and institutions have ready access to the airport and the proposed development site? Do the employees and customers associated with these businesses and institutions enjoy access to markets and a high quality of life? Existing multi-modal connections. Do they provide an extended network for freight movement and for customers and employees to reach the airport? The surface transportation network. Does it provide convenient access to highways and arterial roads and nearby local and regional centers of commerce?

104 Generating revenue from Commercial Development On or adjacent to airports Regulatory issues are covered in more detail in Section 5.12, “Regulatory Constraints/Permitting,” but red flags may emerge in this part of the evaluation. Certain physical features can reduce the usable area of land that can be developed under zoning and state laws, or can trigger detailed permitting requirements if the development plans will include alterations to the land. Portions of the land may also have physical limitations. For example, a shallow depth to groundwater or bedrock or unstable soils can present problems for foundations, drainage, or supporting multi- story construction. Preliminary engineering studies may be necessary to identify these and other critical constraints. 5.5 Physical Site Features KNOW Many of the most important criteria in this toolkit relate to the location and context of the proposed development site, but the physical characteristics of the land are equally important. Working through the questions in this section of the toolkit will reveal any prohibitive physical constraints or special considerations that would have to be addressed with expensive construction procedures. This information is important whether the airport will engage in the development or lease the property to a builder or developer. Any prospective developer or partner will need this information to review development feasibility and likely cost. Higher development costs reduce development revenue, which raises business risk and makes the development location less appealing. This inventory will help to identify features that trigger any or all of the following: HAVE Net Usable Land (Natural Features) SITE SIZE? Review the gross acreage of the parcel under study. Construction challenges Increased construction costs Regulatory controls and permitting requirements WETLANDS ACREAGE? Wetlands are critical areas, from two perspectives: regulations and physical challenges to development. Special permits may be required to fill wetlands for development, secure foundations may be costly, and groundwater seepage may be a recurring problem. Wetland delineations may be available from state, county, or local natural resource inventories or surveys can be done, often in greater detail, by experts contracted by the airport. The presence, boundaries, and composition of wetlands are essential pieces of information. Large wetland areas can preclude economically feasible ADJUSTED SITE SIZE? Remove acreage that is not available for development because of easements or other legal restrictions. The questions in this section of the toolkit help guidebook users identify the physical land characteristics of the property. The complete Physical Site Features Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage.

Site evaluation toolkit 105 Net usable land area calculation Acres Notes Gross acreage (A)? Wetland area? Steep slopes? Floodplains? Other features? Total land reductions (B)? Net usable land (A - B)? Land Characteristics IS THE LAND SLOPING? LEVEL? Level ground is desirable, enabling large footprints for industrial or commercial uses without extensive grading. Sloping land means higher construction costs and sometimes additional zoning restrictions. IS THE LAND FORESTED? Forested areas can provide buffers from surrounding uses but entail higher site clearing costs. IS THE LAND DEVELOPED/PAVED? Redevelopment of paved areas can be easier from an environmental/regulatory standpoint, as the areas have already been disturbed. Economic development agencies generally support reuse of empty buildings or underutilized sites. If existing development needs to be removed, demolition and removal will add to project cost. FLOODPLAIN ACREAGE? Floodplains present a risk to structures and property from inundation by water and are highly regulated areas. Permits are required for grading, filling, or construction within floodplains. Maps of the 100-year floodplain are often available from state or local natural resource agencies and from the Federal Emergency Management Agency (FEMA) (see https://msc.fema.gov/portal). Floodplains are defined by both location and elevation, so if a potential floodplain impactexists, the services of a civil engineer may be needed. Floodplains should be deducted when calculating usable land area on the parcel being considered for development. development. Wetland areas do not all appear marshy with obvious standing water, so at minimum it is important to consult a wetlands inventory resource. STEEP SLOPES? Steep slopes may be defined by local ordinances, and alterations to slopes may be controlled to limit the allowable grading. Steep slopes also present construction challenges for commercial buildings, where level floor plates are needed. Slopes that are 15% or greater from the horizontal are considered steep, though lesser slopes may also be regulated and may pose construction challenges. NET USABLE LAND CALCULATED? Does the property contain other natural features, such as surface water, that may prevent or limit development? What is the land area available after deductions for wetlands, floodplains, or steep slopes?

106 Generating revenue from Commercial Development On or adjacent to airports Land characteristics Area of concern? Notes Yes No Sloping or level? Forested? Developed/paved? Agriculture? Streams or water bodies? Storm drainage/flooding? Shallow bedrock? Ponding/wetlands? Soil conditions? Seismic hazards? ARE THERE STREAMS OR WATER BODIES? Streams or water bodies may add an aesthetic benefit to site development and can aid in site drainage design. However, they may present some development concerns. Some water areas may be regulated wetlands. Streams may divide the site into smaller development areas or may increase development costs due to stream crossings. ARE THERE STORM DRAINAGE/FLOODING ISSUES? Whether or not the site contains delineated floodplains, existing storm drainage issues may be present on the site. Existing flooding issues are an indication that the design and installation of storm drainage systems to support additional development may be costly. WHAT IS THE DEPTH TO BEDROCK? Information about the depth to bedrock may be gleaned from other construction projects on or around an airport. If this is an area of concern, a geotechnical study is advisable to gather site-specific information. A geotechnical study will show construction limits, such as whether the land can support multi-level structures, or whether it will require a certain kind of foundation given the ground conditions. Shallow bedrock may require blasting, which increases project costs. WHAT IS THE DEPTH TO GROUNDWATER? Is ponding visible seasonally or after rain? Shallow depths to groundwater may indicate the presence of wetlands or that drainage systems will be required around the buildings. WHAT ARE THE SOIL CONDITIONS? Soil survey maps should be available from regional Soil Conservation Service offices. These reports will describe soil characteristics, which affect suitability for construction and drainage. ARE THERE SEISMIC HAZARDS? These concerns are specific to certain areas of the country. In such areas, particular building codes may apply to ensure occupant safety and resistance to seismic forces. The airport’s design professionals should research whether such codes apply in the project area.

Site evaluation toolkit 107 Environmental topics Area of concern? NotesYes No Former industrial use? Potential contamination? Threatened/endangered species habitat? Historical features on or around site? SOUND BITE Environmental Considerations/National Environmental Policy Act (NEPA) FORMER USE? Sites used for industry in the past should be studied for potential contamination. THREATENED/ENDANGERED (T/E) SPECIES HABITAT? HISTORICAL FEATURES ON OR AROUND SITE? If the project will impact buildings or areas designated as historic at the local, state, or federal levels of government, special permitting and reviews may be required. Local boards may ask for special approval conditions, such as commemorative plaques or restorations. State or local resources can provide information on whether certain areas are mapped as T/E species habitats. These areas may carry federal- or state-level restrictions that prevent construction or increase construction costs. DO Although the list is not exhaustive, answering the questions in this section of the toolkit will provide an indication of whether the site is well suited for development based on natural characteristics and may point to potential limitations or challenges that relate to regulated environmental characteristics. After completing the checklist, guidebook users should consider the following questions: Does the usable land provide a reasonable development area? Some challenges are to be expected and can be overcome in a successful development project. If the development presents many challenges and limitations, or if the cost of addressing them appears to be high, before proceeding further the airport can investigate their potential impact more closely with the help of a development professional such as a civil engineer or environmental planner. Do the natural characteristics of the land present development challenges that could add excessive expense or time (e.g., for permitting) or that may be prohibitive to development? Does the land have other known characteristics that may add excessive cost or delay to the project (e.g., due to environmental regulations)? There is a Superfund site on the airport pertaining to groundwater contamination which complicates environ- mental permitting on the entire airport.

108 Generating revenue from Commercial Development On or adjacent to airports 5.6 Infrastructure Just as with location and access, the availability of utilities to support development is a critical consideration. The next few sections take the guidebook user through an evaluation of utility systems to serve new development. If the airport is in an urban area, it is likely that systems are in place. However, their age and capacity may signal the need for improvements in order to provide new, competitive development sites, or connection costs may be prohibitive. If the airport is in a rural area, on-site utility systems may be required, or the connection distance to existing utilities may be significant. These sections address major infrastructure categories, including sanitary sewer, storm sewer, water, and power and telecom.

Site evaluation toolkit 109 SOUND BITE 5.7 Infrastructure—Sanitary Sewer Systems KNOW In most cases, sanitary sewer service is essential for a development of any size. This service includes both sewer piping and a treatment plant. In a best-case scenario, a municipal sewer system will be available near the airport and have the capacity to serve the proposed development with a gravity connection. Actual conditions may vary, however, and should be understood as part of this initial evaluation. In some cases, pump stations may be needed to get effluent from the site to the larger conveyance system if the system is uphill from the development site. If capacity is not available in the existing treatment plant, a facility expansion might be necessary, which would be a costly item for the development project to support. A package treatment plant is another possibility but also can be very expensive. If the local treatment plant is in violation of any permit conditions, there may be restrictions on new connections. In addition, if local wastewater management plans do not include the airport’s land in an existing or future service area, the sponsor may have to go through a regulatory process to amend the plan. With respect to sewer conveyances, the airport sponsor must examine whether lengthy sewer main extensions are needed, or if the existing system needs larger piping to hold additional effluent. Costs of any needed improvements, or fair share portions of those costs, may have to be assumed by the development project. If surrounding private development properties exist, it may be possible to join with other property owners in an agreement to share costs for improvements that would benefit all. To develop an accurate picture of sewer availability, contact with the local authority is recommended so the airport sponsor can learn if there are any capacity issues, if the authority has plans for improvement, and how the connection and service costs would be calculated (i.e., via direct contributions or special assessments). Although a detailed Development Plan with land uses and building sizes may not be available at this point in the process, a rough estimate of sewer generation can be developed in accordance with the applicable government standards in order to compare demand versus capacity. Engineering expertise would be desirable here. HAVE The answers to the questions in this section of the toolkit will help guidebook users understand whether sanitary sewer service is available to serve the airport development and what costs and challenges might be encountered. The complete Infrastructure—Sanitary Sewer System Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. IS THE AIRPORT SERVED BY PUBLIC SEWER? Does the airport’s own sewer service come from a private, on-site treatment plant? Is there service from a public system? Are there conveyance constraints in the system? Are the lines of sufficient size to accommodate additional flow? The city made infrastructure investments to provide water and sewer to the development area and expressed its willing- ness to create TIF [tax increment financing] districts to include new development as they arrive.

110 Generating revenue from Commercial Development On or adjacent to airports WHO IS THE SEWER SERVICE PROVIDER? Is the sewer service provider a municipality, or a regional sewerage authority? IS THE SUBJECT LAND IN A SERVICE AREA? Is the airport’s land within the franchise or service area of the sewerage provider? This should be confirmed through direct communication with the provider. IS THE LAND ADJACENT TO A SEWER MAIN? Is an existing sewer main available in the abutting road or an adjacent property? Could service to a new building be provided with only a lateral line? WHAT DISTANCE OF SEWER MAIN CONSTRUCTION IS NEEDED? If the sewer main is not adjacent to the site, what is the length needed to bring it to the property? COULD A SHORTFALL OCCUR IN DEMAND VERSUS CAPACITY? Will the intended development need more treatment capacity than is available? How much? WHAT IS THE ESTIMATE OF DEVELOPMENT PROJECT NEEDS? Typical factors can be used to estimate how much sewage will be generated by different types of development, and thus the amount of capacity that needs to be available in treatment plants or conveyance systems. These standards should be set down in regulations administered by the entity that issues sewer connection permits. As an example, a typical generation rate for office uses is 0.1 gallons per day per square foot. ARE THERE PLANNED SYSTEM IMPROVEMENTS? Does the sewerage authority or municipality have any plans for improvements to the system? Are they scheduled for the short or long term? Information may be available on websites or in facility plans filed with the state or city or direct communication may be most effective. WHAT ISSUES/COSTS WILL APPLY FOR RESERVING CAPACITY? What is the procedure to reserve sewage treatment capacity with the local sewerage authority or department? What is the charge to maintain the reservation? A reservation will most likely be contingent on site plan approval. ARE THERE ANY PLANT CAPACITY OR CONVEYANCE CONSTRAINTS? Does the treatment plant have available capacity, or is the treatment plant operating at its capacity limit? Does the treatment plant face any restrictions on serving new customers because of citations/violations? IS A PUMP STATION NEEDED? Topography will dictate whether a pump station is required to convey sewerage uphill from the site to the treatment plant. This could be a significant cost item.

Site evaluation toolkit 111 Available service, costs and challenges Notes Public or private sewer service? Service provider? Is land in the service area (confirmed by provider)? Adjacent sewer main? Length of needed sewer main construction? Plant capacity/conveyance constraints? Need for pump station? Capacity reservation issues/costs? Planned improvements? Capacity needs estimate by type of development? Demand vs. capacity shortfall? DO The information gathered from answering the questions in this section of the toolkit can be used to determine whether the airport’s current sanitary sewer service or access to the community sewer system will be adequate and cost-effective for the proposed development on airport property, considering: Opportunity and cost to reserve capacity within the public sanitary sewer system Completing the checklist will show whether the development site is well-positioned with regard to sanitary sewer service. If this review reveals access or capacity limitations to sewer service or that the cost for sanitary sewer service is high due to access or infrastructure construction costs, commercial development may not be the best option for increasing airport revenue. Opportunity and cost for a new connection to a public sanitary sewer service or to increase generation rates through an existing connection Opportunity and cost to serve future development with the current sanitary sewer service at the airport, if applicable

112 Generating revenue from Commercial Development On or adjacent to airports 5.8 Infrastructure—Stormwater Systems KNOW Identify municipal or regional stormwater systems and locate them in relation to the property. These systems are particularly important in urban and low-lying areas to deter ponding and flooding that can affect access to the developable land or the land itself. In some areas, regional stormwater management systems have been established, including regional detention basins. Often, a financial contribution to the system is required from new development that will drain into the system. Sometimes storm sewer mains will need to be improved or expanded for the development. In other areas, regulations from regional water authorities or local zoning or subdivision rules may require development to incorporate on-site detention or retention facilities to hold back stormwater before it is discharged into local pipes. Such facilities would affect the land available for other uses in a development, including buildings and parking, and would also affect development costs. The design could involve lot-by-lot detention or a single facility serving an entire planned development. The character of the waterway receiving the stormwater discharge also can affect the system engineering; if the watercourse is considered sensitive, pre-treatment or additional buffer areas could be required. HAVE Site-Specific Stormwater Management STORMWATER PERMITTING? Identify the authority for stormwater permitting. MULTI-LOT DEVELOPMENT? In the case of a multi-lot development such as a business park, do ordinances or codes allow one or two basins to be engineered to serve the whole development? ON-SITE REQUIREMENTS? Do applicable codes or ordinances require stormwater to be detained on the site before it is discharged into the street system? On-site requirements mean that extra space must be allocated within the site, taking away from the developable area. The answers to the questions in this section of the toolkit will help guidebook users identify any issues associated with permitting or system limitation that may impact development decisions. The complete Infrastructure—Stormwater Systems Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage.

Site evaluation toolkit 113 DO The information gathered by answering the questions in this part of the toolkit can be used to determine whether on-site stormwater drainage design requirements and regional stormwater management systems will pose limitations to airport development due to: The physical space required to meet surface water detention or retention requirements and associated drain infrastructure in relation to the land area available for development Regional management Notes Who is regional permitting authority? Any capacity issues that prevent or limit discharge? System improvements planned by regional authority? Pre-treatment or buffer areas required in engineering design? Access reservation cost? Required payment amount for discharge into system? Site-specific management Notes Who is permitting authority? Codes/ordinances requiring onsite detention before discharge? Required filtration/treatment before discharge? Basin requirements for multi-lot developments? Regional Stormwater Management AUTHORITY? Is there an authority that operates a regional system? CAPACITY? Are there capacity issues in the regional system that would prevent or limit discharge from airport development? PRE-TREATMENT/BUFFERS? Are pre-treatment or additional buffer areas required as part of the engineering design? COST? Is there a cost to reserve access to the system? PAYMENT? What payment is required to discharge into the system? SYSTEM IMPROVEMENTS? Does the regional authority have plans for system improvements?

114 Generating revenue from Commercial Development On or adjacent to airports The anticipated cost of design and construction for storm drainage infrastructure The results of this portion of the self-assessment also can be used to consider whether the permitting issues seem to be manageable or whether some issues may present a significant challenge, delay, or cost. Depending on the scope of the project, the funds available, and the airport’s risk tolerance, one or more issues may deter development at this stage. If this occurs, the project may be put on hold indefinitely or the airport may choose to investigate the issue more fully with the help of a civil engineer before proceeding. If the overall result of the Site Evaluation Toolkit assessment is to move forward, the information discovered in this section can be used in the Implementation Toolkit (see Chapter 6) to fine-tune the development strategy, including site design, project timeline, and budget. The capacity of the regional stormwater authority to accept the anticipated storm drainage discharge into the existing system

Site evaluation toolkit 115 5.9 Infrastructure—Water KNOW Water service is an important infrastructure element and, as with sanitary sewer service, a preliminary estimate of a project’s demand should be made to assess any capacity or supply issues. Consumption requirements can vary widely; a warehouse will require much less water than a hotel. Thus, any limits on water availability need to be fed back into the planning process that determines the land use plan. In addition to consumption, fire protection also needs to be reviewed to determine whether water capacity and pressure will be adequate to meet sprinkler requirements and other safety needs. As with sewer service, any shortfall in supply should be identified. If new water main extensions are required, that will be a cost factor in the later financial analysis. The airport sponsor can request a “will serve” letter from the water utility confirming that the proposed development can be provided with water. There may be cases in which public water is not available and the proposed development, generally a small-scale project, will rely on well water. In this situation, the drinking water quality needs to be tested, as does the capacity of the well and pump equipment. HAVE The questions in this section of the toolkit relate to the system serving the development (public water or private water). The complete Infrastructure—Water Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. General Evaluation SOUND BITE 1 million gallons of water per day 32,500 million cubic feet of natural gas per month within 9 months Immediate access to rail A location within 5 miles of an Interstate Highway A wetland delineation A Phase I environmental clearance SERVED BY PUBLIC WATER? Is the airport served by a public system or by a private, on-site well? What is the water source for the land under consideration for development? In order to give the industrial park a competitive edge, the airport pursued an accreditation by the state for industrial parks that meets a collection of eight criteria, including the ability to provide: DEVELOPMENT PROJECT NEEDS? What will the water demand of the potential development be in broad terms, based on proposed land uses?

116 Generating revenue from Commercial Development On or adjacent to airports WATER SERVICE PROVIDER? The provider could be a private company or a municipal or regional water department. Is the development site within the provider’s franchise or service area? General evaluation Notes Water demand based on proposed land use? Public service/private on-site well? Required filtration/treatment before discharge? Basin requirements for multi-lot developments? Public Water System WATER SERVICE ADJACENT TO AIRPORT LAND? Is a water main present in the street frontage of the development site? SUPPLY SOURCES? Does the water supply come from a municipal groundwater well or is a reservoir maintained for the public water supply? ANY SUPPLY OR CONVEYANCE CONSTRAINTS? Are there any concerns with the public water supply associated with water quantity or water quality? Have there been issues with inadequate pipe capacity or leaking pipes? ISSUES/COSTS FOR RESERVING CAPACITY? What is the procedure for reserving capacity in the water supply system for a new development? PLANNED SYSTEM IMPROVEMENTS? Is a capital improvement program in place for the public system that could increase water supplies, replace old conveyance pipes, or make other improvements? DISTANCE OF WATER MAIN? Would a water main extension be required to serve the site by constructing new water lines from the development site to the nearest connection point? How long would the extension need to be? This could be a development cost.

Site evaluation toolkit 117 System Capacity SHORTFALL IN DEMAND VERSUS CAPACITY? Does the system (public or private) have adequate supply for the proposed development? Can the airport obtain a written confirmation that water can be provided? If the supply may not be adequate, how can the shortfall be met? Public water system (if served by public system) Notes Identify service provider? Water service adjacent to airport land? Identify supply source? Supply/conveyance constraints? Length of required water main extension, if any? Capacity reservation costs/issues? Planned improvements? Private water supply (if served by private supply) Notes Existing supply source/capacity? Well expansion required? Groundwater contamination? Public/private system capacity Notes Demand vs. capacity shortfall? Private Water Supply ARE THERE ANY GROUNDWATER CONTAMINATION ISSUES? Is there any history of groundwater contamination? Has an assessment been made of surrounding groundwater issues that may affect water quality? Have water quality tests been conducted from the existing source? WHAT IS THE WATER SUPPLY SOURCE AND CAPACITY? Is there an on-site well, or are there geologic conditions that could yield adequate water? Would expansion of an existing well be required? Is the water yield sufficient?

118 Generating revenue from Commercial Development On or adjacent to airports DO Based on the answers to the questions in this part of the toolkit, guidebook users can determine whether water supply for the potential development will pose any limitations due to: The safety and reliability of the water source serving the proposed development area If a safe and reliable water source can serve the proposed development with adequate capacity and without excessive cost, then the water supply is likely not a limiting factor for development. If this review finds access or capacity limitations to water service, or that the cost for water service is high due to access or infrastructure construction costs, commercial development may not be the best option for increasing airport revenue. In this case, it would be advisable to identify cost-effective solutions or alternative land uses with reduced demand for water service before development plans move forward. The anticipated cost of design and construction for water infrastructure – whether for a public or private system The capacity of the public or private water supply system to provide the quantity of water needed to meet the anticipated demand of the proposed development based on type and size

Site evaluation toolkit 119 Identify utility providers Notes Electric service? Natural gas? Telephone provider? Internet service provider? Fiber optic available? SOUND BITE 5.10 Infrastructure—Power/Telecom KNOW Electrical power, natural gas service, and reliable telephone and internet services are essential elements for today’s business facilities. Existing airport operations will already be operating with electrical and telephone service, but development of large tracts of land and particular uses, such as data centers, may require more power capacity than is currently available. The addition of substations and power plants has been important to certain airport developments, as upgraded electrical generation and distribution can be an attraction if not a requirement for industry. It is important to understand what is already in place and what may need to be added or improved as part of the development planning process. HAVE The answers to the questions in this section of the toolkit will help guidebook users understand the existing power and communications networks available in the area and the implications for the airport development. The complete Infrastructure—Power/Telecom checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Identify Utility Providers ELECTRIC SERVICE PROVIDER? Will the development be served by a private power company? A public provider? Is the land within an existing franchise area? NATURAL GAS SERVICE PROVIDER? Will the development be served by a private company? Is the land within an existing franchise area? TELEPHONE PROVIDER? Does the provider offer local and nationwide service or only local service? INTERNET SERVICE PROVIDER? Is Internet service provided through the telephone company? Are cable or satellite connections available? FIBER OPTIC AVAILABLE? Is there an option for VOIP (Voice over Internet Protocol) service via a high-speed fiber optic service? [Having the pad] ready and advance work done on development sites gives an industrial park a considerable advantage over competing facilities.

120 Generating revenue from Commercial Development On or adjacent to airports Service connection Notes Distance to nearest electrical/gas connection? Extension/connection funded by power company? Requires underground installation or relocation? Capacity Notes Utility capacity constraints? Reliability issues? Vulnerable to storms/flooding? Needed improvements? Planned improvements? Connecting to Services DISTANCE TO NEAREST ELECTRICAL/GAS CONNECTION? If electrical or gas connections are not already present at the site, how far is the nearest supply line? POWER COMPANIES FUND EXTENSIONS/CONNECTIONS? Does the utility company install the service line for a potential ratepayer? This can be determined through a conversation with the power company. UNDERGROUND INSTALLATION OR RELOCATION REQUIRED? Does the approval authority (or a local ordinance) require that power lines be installed or relocated underground when new development is proposed? Installation or relocation can be very expensive, and the requirement should be identified early in the evaluation process by reviewing site plan and zoning standards. Capacity PLANNED SYSTEM IMPROVEMENTS? Is the utility company proposing to create additional capacity to improve resilience of the system? UTILITY CAPACITY CONSTRAINTS? Are there any issues with the reliable electric, gas, or telephone supply? Is the system vulnerable to storms or flooding? SYSTEM IMPROVEMENTS NEEDED? Would any improvements have to be made by the power company to serve the future commercial development? Are there currently any capacity or peak-use issues?

Site evaluation toolkit 121 DO Based on the answers to the questions in this section of the toolkit, guidebook users can determine whether power and telecom infrastructure for the potential development will pose any limitations due to: The availability of required utility service, either at the site or within the service area The anticipated cost of design and construction/connection for utility infrastructure If utilities are available, reliable, and have the capacity to serve the proposed development with a reasonable connection cost, then utilities would appear not to be a limiting factor for development. If this review finds access or capacity limitations to utility service or that the cost for utility service is high due to access or construction costs, commercial development may not be the best option for increasing airport revenue. It is advisable to identify cost-effective solutions or alternative land uses with reduced demand for utility service before development plans move forward. The utility capacity available and reliable to serve the anticipated demand based on the type and size of development

122 Generating revenue from Commercial Development On or adjacent to airports 5.11 Surrounding Land Use KNOW How will the development fit in? Reviewing surrounding land use means looking past the immediate borders of the airport to assess the character and use of developed property in the area. The limits of consideration may depend on how the land uses change with distance from the airport, or if there are physical barriers (e.g., streams, a highway, or a park) that affect the land use pattern. Identifying surrounding land uses is a first step in: Understanding the context of the proposed future development Evaluating the compatibility of proposed uses with surroundings Locating stakeholders who may support or oppose the future development Finding important synergies for project marketing Identifying potentially competing developments Surrounding land uses can be indicative of the type of support or opposition that may greet a proposed development at the airport. Adjacent residential development can signal potential opposition to airport land development in the approval process due to noise and traffic concerns. Existing industrial uses are not likely to have those concerns. Large institutions can indicate potential users for a development project and strategies for marketing the development to related businesses. The existing land uses around the airport may or may not align with best practices regarding airport land use compatibility. ACRP Report 27: Enhancing Airport Land Use Compatibility provides a comprehensive explanation of compatible and incompatible land uses around an airport and presents strategies for improving existing conditions. For purposes of the Site Evaluation Toolkit, the discussion of existing land uses is aimed at identifying the land uses that are in place rather than those that should be in place from the standpoint of airport land use compatibility. Although surrounding land uses can be identified from personal observation and “windshield surveys,” broader information often can be obtained from aerial photographs, land use surveys, and master plan documents obtained from local planning offices. A Community Master Plan may describe the preferred future land uses through a 20-year planning view. Such a plan can be an indicator of what is to come over time. The Zoning Map will show what land uses are currently permitted around the airport property. It will be an indicator of new uses that would be permitted on vacant land near the airport or in existing buildings. In both cases, the new uses may differ from the existing uses. SOUND BITE The traffic pattern for the airport is to the east side of the airport, so there are no school overflights. There are some noise complaints, but these noise complaints appear to be primarily related to helicop- ter training conducted at the airport.

Site evaluation toolkit 123 HAVE The answers to the questions in this section of the toolkit will allow guidebook users to establish a profile of the surrounding land use pattern. The complete Surrounding Land Use Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. CHARACTER OF SURROUNDING LAND USE? Which of the following descriptors best captures the general character of the surrounding land uses? • Urban? The property is in a highly developed area with busy streets and a mix of uses. • Suburban? The property is outside an urban area, with lower-density commercial and residential development. • Rural? The property is in the country, with few commercial uses apart from the airport itself. TYPE OF SURROUNDING LAND USES AND PROXIMITY TO THE AIRPORT? Of the following land uses, which are present in the area surrounding the airport? Single-family residential? Are homes adjacent to or near the development site? Do they have large lots? Multi-family residential? Are apartments or townhouses adjacent to or near the development site? Local retail? Are any commercial uses near the development site? Regional retail, medical facilities? Are any regional facilities in the area? If so, they may represent potential sources for supporting businesses and suppliers that may want to locate nearby or, specifically, closer to the airport. Such facilities also may generate airport customers. Educational institutions? Nearby universities, colleges, private schools, and training centers also can generate demand for space or related businesses. Industrial? Are any heavy or light industry or business parks in the vicinity? Agricultural, recreation, open/vacant space? Are parks or wildlife preserves near the airport that would be sensitive to commercial development? Surrounding land use character Check to select Notes Urban? Suburban? Rural?

124 Generating revenue from Commercial Development On or adjacent to airports FUTURE LAND USES? What types of new or future land uses are permitted near the airport? • Types of Uses Permitted by the Current Zoning Map? The Zoning Ordinance includes a Zoning Map that indicates what uses are currently permitted on which parcels of land. If the ordinance has been revised recently, the new map may show land uses that are different from the existing uses. • Types of Future Land Uses in the Master Plan? The Community Master Plan includes a Future Land Use map that defines the community’s long term land use vision. This may be different than existing uses. DO Based on the answers to the questions in this section of the toolkit, guidebook users can determine the nature of the existing development surrounding the airport and consider whether it might have a positive or a negative influence on development plans based on both the character of the surrounding land use pattern and the types of land use development surrounding the airport. If the results of this evaluation indicate that the proposed land uses for airport development would be compatible with existing and planned future development around the airport, this would appear to pose no limitation to development. In fact, compatible land uses around an airport can have a positive influence on future development through political and economic support. If the review finds that the character of land uses around the airport is not compatible with the proposed development concept at the airport, however, this should be taken into consideration. Extended public objections may be raised against incompatible airport Single-family residential? Multi-family residential? Local retail? Regional retail/medical facilities? Educational institutions? Industrial? Agricultural, recreation, open space/vacant? F U Land use types and proximity to airport Check to select Notes Future land uses Notes Types permitted by current Zoning Map? Types of future land uses in master plan?

Site evaluation toolkit 125 development proposals. These, in turn, can increase development costs through extended timelines for permitting and approval, and they can increase legal and other consulting fees. If community objections are likely, the airport is advised to consider an investment in public outreach to gauge public support and initiate an initial community conversation before proceeding.

126 Generating revenue from Commercial Development On or adjacent to airports 5.12 Regulatory Constraints/Permitting KNOW Regulatory constraints are a major challenge for real estate development because of the time and resources required to work through them and, to some degree, because of the unpredictability of the process. Real estate development is subject to many regulatory controls, which vary depending on state and municipal location and applicable laws and standards. Some of the more common regulations are discussed in this section of the toolkit to identify permitting requirements for project evaluation purposes. Once specific regulatory constraints have been identified, the airport may find it is possible to minimize the amount of permitting required for the project through design choices that avoid regulatory triggers. For airports, the first level of analysis is a review of the controls imposed by FAA grant assurances, regulations, and policies (see Chapter 3, “Legal Considerations”). For grant-obligated airports, a review of grant assurances with respect to a development proposal must be a first step. FAA COMMUNICATION Early and frequent communication with FAA is strongly advised to determine the need for FAA reviews and actions and to keep those processes moving. DEVELOPMENT RESTRICTIONS The land considered for airport development should be reviewed to identify areas subject to development restrictions on building height and location. These provisions are put in place to preserve airport safety and efficiency, which will always be of primary importance. At an airport, development preferences must be a secondary consideration. Examples of these restrictions include Runway Protection Zones (RPZs) and sight lines required for air traffic control towers (when present). Federally obligated airports also are subject to NEPA requirements, which mandate a review of environmental impacts of federal and federally-funded actions. The level of detail required in an environmental review can vary depending on whether there is minimal site development or, at the other extreme, considerable excavation and construction. The level of a NEPA review will also vary depending on the environmental sensitivity of the development area. The Physical Site Features Checklist will help guidebook users identify whether sensitive environmental features are present that may require a permit if there are impacts from the proposed development. For example, wetlands larger than 5 acres in size require permits for disturbance, and development in a regulated wetland area is restricted or heavily regulated. The wetland permitting process can be lengthy and expensive, and should be avoided where possible by directing development away from those areas. Habitats for threatened and endangered wildlife species also may generate potential development restrictions if such areas are present on the site. Wetlands and habitats for wildlife are considered as part of the NEPA review process and are permitted directly by the federal or state management agency. Zoning regulations are commonly imposed at the local level, and may or may not apply to an airport’s proposed development (see Chapter 2, “Fundamentals”). As a rule of thumb, local zoning control is usually applied only to areas outside of the AOA, which is generally described as SOUND BITE Recently, 42 acres of the industrial park have been certified under state law as "shovel ready" and available for fast construction permitting.

Site evaluation toolkit 127 the area within the secured and fenced-in area of the airport. In some states, local zoning does not apply to any airport property. Where local zoning does apply, the airport’s development plans and intended uses must be evaluated for compliance. If the development is not permitted by local zoning regulations as proposed, obtaining zoning changes or variances may be an option but the potential for success or opposition must be assessed realistically, and the complete effort may add months or even years to the project timeline. It may make sense to pursue a zoning change if (1) community relations are sound, (2) the airport and municipality are on the same page regarding the need for economic development, and (3) a change would promote the highest and best use of the land. Making an adjustment to the proposed development plans may be another solution. HAVE The answers to the questions presented in this section of the toolkit provide information about regulatory agencies that may have jurisdiction over airport development projects and permits that may be required. This list is not intended to be exhaustive; rather, it identifies permits that are encountered fairly frequently in the land development process. The complete Regulatory Constraints/Permitting Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. FAA Review and Actions FAA does not issue permits, but the agency does review and take action on several things that may relate directly to plans for development on the airport. In some cases, FAA does not have direct legal authority to prevent an action, but may consider airport actions contrary to FAA direction as a violation of grant assurances. Gathering responses to the questions in this section and combining them with the answers from the Self-Assessment Checklist in Chapter 4 will enable guidebook users to consider which items may need to be reviewed by the FAA. This section in the toolkit also can function as a guide for a conversation with FAA’s Airports District Office (ADO) about the development process and where FAA may need to become involved in a specific project. DEVELOPMENT GENERALLY ACCEPTED? Does the FAA generally approve of the development concept? AIRPORT MASTER PLAN? (See Chapter 2, “Fundamentals,” for definition and discussion.) ALP? (See Chapter 2, “Fundamentals,” for definition and discussion.) EXHIBIT “A” AIRPORT PROPERTY MAP? The Exhibit “A” document referenced in this guidebook is a snapshot of the inventory of parcels that make up dedicated airport property. Exhibit “A” indicates how the land was acquired, the funding source for the land, and if the land was conveyed as federal surplus land or government property. Other detached parcels owned by the airport sponsor that are dedicated to airport purposes also must be shown on Exhibit “A.” The Exhibit “A” document must show all dedicated airport property regardless of the type of funds (AIP, state, local, etc.) used to acquire that property. All land described in a project application and shown on an Exhibit “A” constitutes the airport property federally obligated for compliance under the terms and covenants of a grant agreement.

128 Generating revenue from Commercial Development On or adjacent to airports FAA ARP SOP 3.00? A standard operating procedure (SOP) document for FAA staff that establishes uniform procedures for reviewing and accepting Exhibit “A” Airport Property Inventory Maps. LEASE TERMS? (See Chapter 3, “Legal Considerations,” for information about FAA’s role in reviewing lease terms.) Non-Aeronautical Use LAND RELEASE? (See Chapter 2, “Fundamentals,” for an explanation of a land release.) Airspace Review FAA FORM 7460-1 NOTICE OF PROPOSED CONSTRUCTION OR ALTERATION? This form implements the requirements of 14 CFR Part 77. Generally, this application is required for development of land both on and off airport property, for any construction or alterations which may affect navigable airspace. NEPA Environmental Review NEPA REVIEW REQUIRED? If a proposed airport improvement or development requires a federal action by FAA or another federal agency, it must adhere to NEPA. Some states also have legislation requiring environmental review. If a NEPA review is required, determine which of these two levels of review would be required. CATEGORICAL EXCLUSION (CATEX) LIKELY? A CATEX applies to categories of actions that FAA has determined, based on previous experience, do not have significant individual or cumulative impact on the quality of the human environment except in extraordinary circumstances. A CATEX is not an exemption or waiver of NEPA review; rather, it is a level FAA review and actions Check to select Notes Checklist to discuss FAA involvement with FAA ADO? Development generally? Airport Master Plan? Airport Layout Plan? Exhibit “A” Airport Property Map? FAA ARP SOP 3.00? Lease terms? Non-aeronautical use? Land release? Airspace review? FAA Form 7460-1 Notice of Proposed Construction or Alteration?

Site evaluation toolkit 129 Does NEPA apply? If yes, which review applies? Categorical Exclusion (CATEX)? Environmental Assessment (EA)? NEPA environmental review Check to select Notes State-level legislation? of NEPA review and documentation that must be prepared for the project file to identify why no additional environmental review is necessary. ENVIRONMENTAL ASSESSMENT (EA) REQUIRED? An EA is prepared by an airport sponsor to determine whether a proposed action will cause a significant effect on the human environment. A significant effect would exceed regulatory thresholds/limits. An EA describes a proposed project and its alternatives, summarizes the environmental analysis and conclusions, and is circulated to the public. The public may comment on an EA. Based on the EA analysis, FAA will either approve the proposed action by issuing a Finding of No Significant Impact (FONSI) document or require further analysis that is documented in a subsequent Environmental Impact Statement (EIS). Environmental CONTAMINATION PRESENT? Is contamination known or suspected from past use? Are there records of past violations or reported spills? If so, environmental investigation will be needed. A significant amount of information is provided in this section because, should outstanding environmental contamination exist on the site, this issue will need to be resolved before the property can be developed or marketed to others for development. The investigation and remediation process is described in the following sections: • • REMEDIATION PLAN NEEDED/COMPLETED/APPROVED? If remediation is required, cleanup plans or other actions designed to address contamination or other RECs may be subject to review and approval by an agency or agencies at the state or federal level prior to implementation of the development plan. What agency controls remediation of Phase I Environmental Site Assessment (ESA) needed/completed? A Phase I ESA is the first level of evaluation for environmental concerns such as contamination. In this process, the past use of the site and related records are examined, and a site evaluation is conducted to determine if there are any indications of contamination or other environmental liabilities. A specialized consultant should be engaged to perform this work. Prospective purchasers or lessees would likely require this level of analysis. Phase II ESA needed/completed? If the Phase I ESA identifies areas of environmental liability, termed recognized environmental conditions (RECs), a second, more detailed evaluation should be completed by a specialized consultant. This evaluation is completed to determine if remediation or cleanup is required to address the RECs. The evaluation may include testing of soil, groundwater, or other media and comparison of the test results to regulatory environmental standards.

130 Generating revenue from Commercial Development On or adjacent to airports contaminated sites for the project location? It is important to secure the appropriate plan approvals before expending resources on remediation from the controlling agency. REMEDIATION COMPLETED? If cleanup has taken place, has the regulatory agency approved the work? Are there any restrictions on use of the site as a result of the contamination or remediation strategy? For example, soils contaminated from historic activity may be capped instead of removed, but use restrictions may be enforced that prevent specific uses. If a restriction is in place, was a deed restriction required? If a deed restriction is in place, it will show up in a title search. REMEDIATION NOT COMPLETED? If remediation has not been completed, when is it scheduled? In most cases, marketing a site to potential users will not be feasible if there is outstanding contamination. WETLANDS FILL OR CROSSING PERMITS NEEDED? The U.S. Army Corps of Engineers administers the day-to-day federal wetlands program, including individual and general permit decisions, although other federal agencies may also participate in the permit review process. In some states, the federal wetland permitting process may be administered by a state’s environmental department. In some cases, a state and/or local government may administer an additional, more restrictive permitting process. Generally, expedited permits may be available for very limited wetland disturbance, such as constructing a crossing to access upland areas. Projects that disturb larger wetland areas are generally discouraged and restricted unless they will result in a significant public benefit. FLOODPLAIN ENCROACHMENT PERMIT? Floodplains are regulated under Executive Order 11988 (Floodplain Management) and administered at the state level by the state’s environmental office and at the local level through various floodplain administration offices. Floodplains are defined by FEMA flood insurance rate maps (FIRMs) that can be found online. Construction projects are discouraged within a 100-year floodplain, but if impacts are unavoidable, they require a state permit and must also meet any local jurisdictional permitting requirements. As with wetlands, it is best to avoid encroachment to the extent possible and thus keep regulatory complications at a minimum. FLOOD INSURANCE NEEDED? If existing or proposed buildings are within the 100-year floodplain, flood insurance is likely to be required for any financing. The question of whether a building is in floodplain is determined by comparing the floodplain elevation with the elevation of the building’s lowest floor level. The assistance of a consultant may be needed.

Site evaluation toolkit 131 Zoning/Local Approvals NON-AERONAUTICAL LAND IN A DESIGNATED REDEVELOPMENT AREA? Redevelopment areas are an economic development tool enabled by state legislation. Procedures for redevelopment areas vary across the country but generally, designation as a redevelopment area means the land is subject to a special Development Plan that will supersede underlying zoning. Is the airport’s land in such an area? LOCAL ZONING APPLICABLE? Does local zoning apply to the proposed project? If not, continue to the next section. If so, consider the following elements of zoning regulation: Regulating municipality? Applicable zoning may be administered by the local municipality, the county, or the region. Identify the applicable zoning authority and associated requirements. Subject land zoning district(s)? Is the land proposed for development within an airport district? An industrial zone? A business district? Another similar zone that would fit the proposed uses? If so, check the permitted uses within the zone. If not, consider a rezoning. Permitted uses? Zoning districts have lists of permitted uses within the zone that vary by location. Do the uses permitted by the local zoning district match the commercial development theme? Rezoning required? The zoning district applicable to the land proposed for development may not match the existing or intended land uses. Some ordinances are old and do not reflect current development patterns or market demand. In these cases, the local regulatory body might be approached to consider a change to the zoning category (i.e., rezoning). A rezoning request must align with the community’s long-range planning document. Is the community’s Comprehensive or Master Plan document compatible with the rezoning request? If not, it is possible that the Community Comprehensive Plan or Master Plan could be amended. Although they are feasible, amendments to community planning documents can take considerable time, and the effort will add time and expense to the development process. Based on current political conditions, would a rezoning request likely be approved? Environmental Check to select Notes Contamination present? Phase I Environmental Site Assessment (ESA) completed? Phase II ESA completed? Remediation plan approved? Remediation completed? Wetlands fill or crossing permits needed? Floodplain encroachment permit? Flood insurance needed?

132 Generating revenue from Commercial Development On or adjacent to airports Minimum lot size? What is the minimum lot size permitted? The minimum lot size will determine how many lots the land can yield for ground leases or as building sites. Maximum height? What is the maximum building height permitted, and how is it measured? The maximum height is generally expressed in stories or feet, and it may be measured to the eave or the peak of the structure. FAA restrictions also may affect permitted building height, although FAA’s restrictions may not be recognized by local zoning ordinances. The developer needs to be aware of both requirements. Parking requirements? Parking requirements are typically expressed in number of spaces per 1,000 square feet and the number of required spaces is usually higher in suburban areas, which are more auto-oriented. Office space requires the most parking spaces, and distribution and data centers generally require the fewest. Site areas for the necessary parking must be reserved in design concepts. Max floor area ratio? The maximum floor area ratio may be abbreviated as “FAR” on planning documentation. A maximum floor area ratio is expressed as the relationship between the lot area and square feet of building, and puts a density limit on the size of the building permitted on-site. For example, a floor area ratio of 0.15 means that if a lot is 10 acres, the building floor area is capped at 65,340 square feet based on the following calculation: – 435,600 square feet [lot size] x 0.15 [floor area ratio] = 65,340 square feet. – Will the maximum floor area ratio be sufficient to accommodate the proposed project? Building and lot coverage? Zoning ordinances typically set limits on the amount of permitted lot coverage. The regulations usually include proposed buildings and structures as well as parking areas (impermeable surfaces). Remaining lot area must be in open space or be designed with permeable surfaces. Can the lot coverage requirements be met? Site Plan approval or Conditional/Special Use Permit needed? Most commercial and industrial development will require some kind of Site Plan approval. More intense uses may require a Conditional or Special Use Permit that regulates the use of the site for impacts such as noise and hours of operation. Subdivision, land division, or site condominium approval needed? Depending on the proposed lot layouts and method of land division, some type of approval may be required. These regulations vary by state. The local zoning office can help determine whether any land division regulations apply. Variances needed? Variances may be needed from height, setback, lot size, or similar standards (bulk variances) if the proposed development design does not fit the district requirements for a unique reason. Special findings are required before a variance can be granted, and the benefits of requesting a change in the zoning ordinance versus a variance should be considered and discussed with the applicable authorities in advance. Some states may also allow a use variance—a special exception that permits a use that is otherwise prohibited. Local cooperation likely? Community relations are very important if local zoning decisions will impact the permitting process (i.e., site plan approval, special use permit, variances). If an established, positive relationship exists, this will likely be helpful to the airport in navigating the permitting process. If no relationship exists, or

Site evaluation toolkit 133 if the relationship has been adversarial on other issues, this could hinder the local permitting process. In this case, the potential for additional delay and expense should be factored into a decision to move ahead. Other approvals required? In addition to local land use permitting, some local governments may also issue permits for things such as stormwater management, soil removal, wetland alteration, and construction in the floodplain, which are in addition to county or state permits for the same activity.There may also be unique local requirements such as a tree removal ordinance. Regional planning entities may add another layer of permitting for coastal commissions, watersheds, airport land use commissions, or urban metropolitan areas. To the extent possible, it is advisable to reach out to local and regional planning offices to identify permitting requirements based on preliminary development ideas. Zoning/local approvals Check to select Notes Designated redevelopment area contains non-aeronautical land? Local zoning applicable? Regulating municipality? Subject land zoning district(s)? Permitted uses? Rezoning required? Minimum lot size? Maximum height? Parking requirements? Maximum floor area ratio? Building and lot coverage? Site plan approval/special use permit? Subdivision, land division, site condominium approval? Variances needed? Local cooperation likely? Other approvals?

134 Generating revenue from Commercial Development On or adjacent to airports It bears repeating that the checklist in this section of the toolkit is not intended to be exhaustive but to touch on some common permits and regulatory constraints that may be encountered during development. Specific states and local governments may have additional permit programs affecting the disturbance of particular natural features or activities. For example, development in waterfront areas may require special permits and soil disturbance may require certification for erosion controls from regional soil conservation districts. The list of potential permit requirements shows how complicated it can be to identify permitting requirements for development projects. It is important to know which permits will be necessary for the project up front, both in order to make site design decisions and in order to estimate the timeframe and expenses involved in getting to construction. Any of the permitting processes reviewed in this section can add months and even years to the project timeline, so they deserve careful evaluation at this stage. Depending on the skills of available staff, this may be a task that can be delegated internally. For airports owned by a municipality, the planning staff may be able to assist. If staff is not available to assist, a consultant may be needed to complete all or part of this evaluation task. The answers to the questions in this section can help guidebook users identify potential permitting requirements and use the results to consider whether the permitting process seems manageable or whether permitting issues exist that may pose significant challenges, delays, or costs. Depending on the scope of the project, the funds available, and the airport’s risk tolerance, one or more significant permitting issues may deter development at this stage. If, on completion of the Site Evaluation Toolkit, the conclusion is to move forward, the information discovered in this section can be brought forward to the Implementation Toolkit (see Chapter 6) to fine-tune the development strategy, including the site design, project timeline, and budget.

Site evaluation toolkit 135 5.13 Market Conditions KNOW Understanding market conditions is an up-front necessity. This sentence could be the number- one most important statement in this Site Evaluation Toolkit. The state of the market for commercial uses must be taken into account when planning the development and particularly when considering potential uses. If these decisions are made in a vacuum, the airport may end up with significant investment into a development that does not match market demand. It is important to know: The availability of land or built space in the market area The supply of comparable projects Prices from sales or rents Vacancy rates This information provides a baseline to estimate the market potential of a project at the airport location and the best opportunities by sector. For example, if the area has an oversupply of Class A office space such that rents are down, then that use would not be a profitable focus for planning, approvals, and marketing, unless a unique market force is driving the need for office space at the airport. Markets are variable by location and by use. For example, in some areas industrial vacancy rates are very low and demand is high, while office absorption is stagnating. An airport or municipal employee may be able to do some initial research. As a start, considerable information is available about local and nationwide commercial real estate from online sources, often created by real estate services firms such as Cushman & Wakefield, JLL, CBRE, and others. Such firms prepare periodic reports on regional real estate trends, which may include the development area. Service providers such as the CoStar Group also provide data on property sales prices. A detailed market analysis requires professional assistance. A real estate advisor will provide not only the data, but also recommendations for the direction of the development. A market assessment by a real estate professional will require an up-front financial investment, but will also lower the development risk. The goal of the market study is to arrive at realistic conclusions regarding the likely absorption for certain types of development and thus the best plan for the site. For example, there would be little promise for a new office park if considerable vacant space with similar or better attributes already exists in the area. Additional market factors include the trends in passenger and cargo traffic noted in Chapter 4, “Self-Assessment Toolkit,” as passenger and cargo activity may support specific development types. SOUND BITE SOUND BITE The airport hired a consulting firm to do a market study including what uses would be viable and how much land would be viable. The airport was told by the master developer, “Just because you want office development doesn’t mean it is going to happen that way.” The new approach is: “Let’s let the market decide.”

136 Generating revenue from Commercial Development On or adjacent to airports HAVE A detailed market analysis will explore and answer questions about the real estate market around the airport. An initial exploration by airport or municipal staff may offer a good starting place. The questions in this section of the toolkit focus on examples of the information that is important to understand, but the list is not exhaustive. The complete Market Conditions Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. VACANCY RATES AND TRENDS? What are the vacancy rate percentages in the area for potential uses (industrial/office/retail/logistics)? Have they been increasing or declining? ABSORPTION RATES AND TRENDS? How long has it taken for comparable space or land to be sold, leased, or rented? Faster absorption indicates more demand for that kind of space. AVERAGE RENTS? How have average rents been trending? Do they vary based on location, access, or type of building? How about ground leases at the airport? LAND AND BUILDING SALES RECORDS? Given that land sales are one option for airport revenue, what are current prices for raw land, subdivided land with utilities, and office, industrial, or retail buildings? SIGNIFICANT RECENT SALES AND LEASE TRANSACTION? Major real estate transactions in the area can indicate that significant space is coming on the market (or has been taken off), or what type of business or industry may be moving in. INVENTORIES OF AVAILABLE SPACE AND LAND? Where is the competition? Is there a glut of available business park land? Is it close to the airport? Will the airport’s site be the only available location for new development? APPARENT GROWTH SECTORS? Is there a trend in new medical office buildings? Modern, high-ceiling warehouses? What type of development is in highest demand? ESTIMATE OF MARKET AREA FOR PROPERTY? What is the likely area that the airport property will draw from for tenants, lessees, or purchasers? The metropolitan area? A bi- state region? Airport development is unique in that market competition also exists from similar airports across the country. ATTRIBUTES OF COMPETING BUSINESS PARKS? What do successful, comparable development projects offer? How do they compare to the airport project site with regard to accessibility? Do they have upscale design standards? Do they offer unique amenities? Do they have high-profile tenants? Such information will offer clues for features that should be programmed into a project to make it competitive.

Site evaluation toolkit 137 DO The results of the market conditions assessment can be used to inform an initial decision about whether on-airport development makes sense as a revenue generation strategy in the current market. The market conditions assessment provides guidance that will need to be measured against the airport’s risk tolerance. If there appears to be market demand, the information can be further refined. The real estate market information is then combined with the other site assessment information to consider whether uses with strong market demand can be accommodated on the development sites available at the airport. This step can be part of the analysis provided by the market conditions assessment. (Generally, land uses have an associated lot size that can be used for planning purposes.) If the market demand can be served by the sites available for development at the airport, then indications are positive for potential revenue generation through on-airport development. If the real estate market is weak overall, or if the airport cannot provide the type of building site that is in demand, these conditions would suggest caution and further investigation. Real estate market analysis Notes Vacancy rates (by percent) Increasing/declining? Absorption rates/trends? Average rents? Land/building sales prices? Significant recent sales/leases? Available space/land inventories? Apparent growth sectors? Estimate of market area for property? Competing business park attributes?

138 Generating revenue from Commercial Development On or adjacent to airports 5.14 Workforce Attraction KNOW The topic of workforce attraction may seem to be a detour from the subject of brick-and-mortar development, but it is a building block in the success of developments that must attract tenants, developers, and ground lessees, and workforce attraction can be a factor in the market conditions analysis. A tenant, a potential master developer, or any user of the site will need to attract and retain workers and executives. Will this workforce want to live, shop, and raise families in the area surrounding the new development or within a reasonable commuting distance? If the local labor force is limited and employees must be recruited or relocated from other areas, will they be attracted to the airport location? The industry interviews conducted for the ACRP Project 03-39 research confirmed that workforce attraction is an important element of successful development efforts. HAVE The answers to the questions in this section of the toolkit will help guidebook users explore the existing conditions in the community related to workforce attraction. As with other sections in this guidebook, the list is informative but not exhaustive. The information can often be gathered from a local or regional chamber of commerce or other economic development office (in part because such entities may have already assembled the information for a business attraction initiative). The complete Workforce Attraction Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. TRAINING PROGRAMS AVAILABLE? Are training programs available to airport or development employees? Training can be sponsored privately or publicly. Some economic development agencies provide funding for training in targeted industries. HOUSING CHOICES? Is a supply of rental and for-sale housing available to serve various income levels? What are the average costs? If there is a shortage or a lack of low- to mid- range housing options near the airport, the general workforce may need to commute a distance for more affordable homes. COST OF LIVING? Housing costs are a major part of the cost of living (or the cost of maintaining a certain standard of living), but the cost of living also includes other factors, such as transportation, food, taxes, healthcare, and costs of other goods and services. Urban areas often have a higher cost of living but may also offer higher salaries. The cost of living in a particular area can be a complicated assessment, so a more general review makes sense at this point. Marketing advisors or economic development offices may be able to provide useful data, and several websites offer cost-of-living comparisons. High? Costs of goods and services are relatively high; and more working hours or higher salaries are needed to pay for necessities. Moderate? Expenses are lower, and more economic diversity may be represented in the population and among businesses. Low? Expenses for basic necessities are lower, but average salaries may also be lower.

Site evaluation toolkit 139 Existing conditions Check to select Notes Training programs available? Housing choices? By income levels? Both rentals and for-sale? Average costs? Cost of living? High? Moderate? Low? SCHOOL SYSTEMS? Often a major factor in attracting corporations and their executives and employees, a highly rated school system offers an area a competitive advantage. The school system should publish statistics that can reveal problems or benefits. Adequate facilities? Are existing schools overcrowded? Are class sizes large? Have new facilities been constructed recently? Is there room for growth? What are the school budget trends? Does the population support the public school budget? Graduation rates? If graduation rates are less than desirable, they may make the communities associated with those schools less attractive to incoming families and workers. College acceptance rates? What percentage of the area’s high school graduates goes on to college? What proportion of the applicants from these schools is accepted at higher-ranked universities? Like high school graduation rates, college acceptance rates can be seen as a proxy for the overall health of a school system and its potential attractiveness to families. ENTERTAINMENT/CULTURAL OPTIONS? Entertainment and recreation are major aspects of the quality of life in a location. Are there theaters, local sports, and museums? LANDSCAPE/NATURAL ATTRACTIONS/RECREATION? Are natural features a source of recreation or local identity (e.g., beaches, mountains, state or national parks, or monuments)? A good park system also can be an important attraction. POPULATION TRENDS? Population trends can be collected from local or state planning offices or found online at the U.S. Census Bureau website (www.census.gov). Growing? Are people moving to the area? Are businesses or institutions attracting new employees? Are new residential developments selling out or renting up? Declining? Has the area been losing people due to job losses, crime, or other reasons? HIGHER EDUCATION FACILITIES? Are colleges or universities located in the area? Higher education facilities can be a workforce attraction because of the cultural and economic activity and general vibrancy that a college brings to a town.

140 Generating revenue from Commercial Development On or adjacent to airports The detailed, local nature of this list may suggest that these items require excessive effort to research, but much of this information is readily available, and local knowledge on the part of the airport sponsor will play a role in the assessment. The various educational, natural, and cultural assets of an area can be an element in the marketing strategy for the development. DO Based on the findings of this section, guidebook users can consider how the area under consideration for development—and the airport area specifically—stacks up against other development locations with regard to workforce attraction. If the market analysis indicates that the airport will be competing for development on a national or state-wide scale (e.g., against other airport locations or other certified industrial parks), this will be an especially important, distinguishing factor (whether positive or negative). If the assessment reveals concerns about the quality of life in the region and the associated ability to attract a qualified workforce, this will increase the development risk. Existing conditions Check to select Notes School system available? Adequate facilities? Graduation rates? College acceptance rates (%)? Entertainment/cultural options? Landscape/natural attractions/recreation? Population trends? Growing? Declining? Higher education facilities?

Site evaluation toolkit 141 SOUND BITE 5.15 Local/Regional Context KNOW Is the local and/or regional economy strong enough to support a significant new commercial real estate development? The information collected regarding the role of the airport in the Self-Assessment Toolkit is also very applicable in this part of the Site Evaluation Toolkit. Whereas the earlier checklists focused on the role of the airport within the community, however, this section looks at broader conditions that feed into the issue of economic viability. If a professional market study is prepared, the items listed in this section will likely be considered and incorporated into the study’s findings and recommendations. Information should also be available from government agencies, chambers of commerce, and similar sources. HAVE The answers to the questions in this section of the toolkit will help guidebook users evaluate the general economic health of the region. The complete Local/Regional Context Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Economic Trends UNEMPLOYMENT RATES AND TRENDS? What were the local and regional unemployment rates during and since the Great Recession? Has employment rebounded, and if so, how significant is the rebound? What trends are projected for the next 5 years? JOB GROWTH OR DECLINE? Has the area been creating or losing jobs? In what sectors? POPULATION TRENDS IN THE COUNTY OR REGION? Looking beyond the municipality, what has been happening to the population in the larger region? Has the population been increasing or decreasing? EMPLOYMENT TRENDS BY LOCATION? What are the job and growth trends in the region’s accessible urban centers? Are the urban centers becoming locations for job growth, or is the growth occurring in the suburbs? GROWTH TRENDS OF MAJOR EMPLOYERS? Are major industrial or commercial plants or corporations located in the region? If so, what’s happening with their workforce? Are they adding employees? Have they laid off workers in the last few years? Growth/Health of Retail Centers NEW PROJECTS? Has there been recent/new investment in retail use? Are there new downtown projects? New projects near the airport? SHUTTERED MALLS? Out-of-date malls with vacant storefronts are a challenge in many suburban areas. Are these found in the airport’s immediate area? Have they been repurposed? The airport is in an economically depressed area overall, and the airport is located in the very lowest income area of the city. This makes it a tough sell to developers.

142 Generating revenue from Commercial Development On or adjacent to airports DO Considering the responses to this section of the toolkit guidebook users can assess the overall strength of the regional economy. Are there signs of strength and growth based on employment, project development, and population trends? Conversely, are there signs that the regional economy is in decline? The information gathered in this section of the toolkit offers another way to assess market strength, and it factors into the project risk assessment. Are any findings of concern? The information generated in this assessment may not, by itself, determine the airport sponsor’s overall conclusion about a potential project; however, when added to other findings from checklists completed in earlier assessment sections, it may be the tipping point in a “Stop/Go” decision about whether on-airport development is likely to generate revenue for the airport. Unemployment rates/trends? During Great Recession? Economic trends Notes Since Great Recession? Locally/regionally? Five-year projections? Job growth/decline? Sectors? County/region population trends? Employment trends by location? Major employer growth trends? Growth/health of retail centers Notes New projects? Downtown/near airport? Shuttered malls?

Site evaluation toolkit 143 INCENTIVE PROGRAMS USED IN THE REGION? What incentive programs, if any, are currently in use in the region? Are multiple programs available? Do they focus on specific geographic areas? Urban areas? Economically disadvantaged areas? Airport areas? ADMINISTERED BY? Who administers the existing incentive programs in the region (i.e., the state, city, or county)? Tax credits for investment? Are tax credits offered for specific investment actions? For capital investment in buildings? For purchases of manufacturing equipment? For purchases of land? Tax credits for job creation? Are there tax incentive programs for job creation? Are they offered as tax credits per job? What are the specific requirements? Must the jobs be maintained or retained at a specific business location for a specific period of time? EXPEDITED PERMITS AND APPROVALS? Some states employ “shovel-ready” programs to designate sites for expedited approvals or to designate areas where sites can receive preferential, top-of-the-pile treatment. Do such programs apply to airport development? Could such a program be developed? SOUND BITE 5.16 Development Incentive Programs KNOW Incentives to attract development are used at all levels of government and can be helpful to a project’s success. Some states and cities have become very aggressive in creating incentives to woo industry from neighboring locations. The literature review and case studies carried out for this project revealed a broad spectrum of incentives, ranging from none at all to tax credit programs and regulatory waivers. In most cases, development incentives are created by statute and administered by regional or state agencies. The availability of such incentives can be an important selling point for an airport site. Depending on the locality, however, incentives can be politically controversial, and they can be attacked as providing an unfair advantage compared to private-sector competition. If no development incentive programs are available for airport development, it may be helpful to approach elected officials to ask whether such incentives can be adopted to benefit both the airport and other development projects in the community. HAVE The answers to the questions in this section of the toolkit will help guidebook users evaluate the current status of development incentives for airport development and to identify potential opportunities for increasing such incentives. The complete Development Incentive Programs Checklist is provided in Appendix B, “Chapter 5 Checklists,” and a customizable copy of the same checklist can be downloaded from the ACRP Research Report 176 webpage. Tax credits for employee training? Are there tax incentives to help fund special skills training? For a specific industry or business? There is coordination with the taxation practices at the state and local level and tax advantages are very important to attracting new business. It’s still hard to compete with other places that have huge incentives by comparison.

144 Generating revenue from Commercial Development On or adjacent to airports ELIGIBILITY CRITERIA? For the incentive programs that have been identified, what are the specific requirements for inclusion? Is there a need to add or expand incentive programs to support the airport development? Preliminary contact with officials is important to gauge the level of support available for an incentive program benefiting the airport. INCENTIVE AREA INCLUDES AIRPORT? If the incentive area is geographic, is the airport’s land for development located within that area? If not, can it be expanded? Which state or local officials are likely to support an incentive program for the airport’s land? This is another area in which positive community relations can benefit the airport. Political will and support are needed for an expansion or for a new program that would provide incentives for the airport land. FOREIGN TRADE ZONES? Is the airport land within a Foreign Trade Zone (FTZ)? This program allows businesses located within a designated FTZ to defer or avoid normal tariffs and duties on imported materials and goods that are held there; such tariffs and duties are charged only if and when the materials or goods are exported from the zone for domestic consumption. DAvailable incentives Notes Regional programs? Multiple programs available? Geographic focus area? Urban/disadvantaged areas? Airport areas? Program administrators? Regional? State? City? County? Tax credits? For investment? For job creation? For employee training? County? Expedited permits/approvals “shovel ready”? Eligibility criteria? Incentive area includes airport? Foreign Trade Zones (FTZs)?

Site evaluation toolkit 145 DO The answers to the questions in this section of the toolkit will help guidebook users evaluate whether programs are already in place or whether it is likely such programs could be created or expanded to encourage on-airport development. If programs are in place, this is a positive indicator for on-airport development. If programs are not in place but there is political will to move in that direction, the airport will need to assign staff time and financial resources to coordinating this effort on behalf of the airport. This is a situation in which consistency of economic goals between the airport and local and state government—and good relations with the community—can produce good results. If no programs are in place and it is unlikely that programs will be added, airport development sites will be at a competitive disadvantage in the marketplace, a situation that increases the development risk. To compensate, the sites will need to demonstrate other benefits such as site amenities or a strong real estate market.

146 Generating revenue from Commercial Development On or adjacent to airports Should the development focus on aviation-related businesses or more diverse industries? Does the airport sponsor have the resources to develop the project independently, or would a partnership or joint venture be desirable? Would the proposed development be consistent with local and regional economic development planning and goals? 5.17 Summary After working through the Site Evaluation Toolkit, the airport sponsor should have a comprehensive file of information on the development site. This information will then be available for consultants engaged for specific development, marketing, and other assignments. Having this groundwork available also will answer many questions for potential partners or investors. Primarily, though, the airport sponsor will use the product of the toolkit to assess whether the site in question can support a development project, and whether that project is likely to be successful and economically viable. The physical, market, regulatory, and other analyses should answer these questions: Is the region growing to the extent of absorbing demand for new land or buildings? What real estate sector would be the most successful? Is the airport’s goal to sell parcels, lease sites, or construct buildings? What FAA review will be required as part of the development process? Should development planning and necessary commitment of resources proceed? The conclusions drawn from the Site Evaluation Toolkit will reflect the balancing of many factors. In some cases, the airport’s direction and decision may be obvious: a site needing expensive construction techniques and subject to numerous regulatory hurdles is not a good bet in a market with low rents and demand for the intended land use. At the other end of the spectrum, a site with relatively low development costs, such as a large, flat, unconstrained site where industrial demand is growing and the local government is supportive of development, could likely command favorable rents and would be a good bet. In most cases, however, both positives and negatives will exist that must be weighed to reach a Stop/Go decision. A supportive political situation can provide a stimulus, but the market demand needs to be there. Go decisions reflect positive scenarios with most or all of the following characteristics: Developed planning tools in place Adequate unencumbered land An accessible location Anchor industries or institutions in the region Adequate utility capacity Does the airport land have the attributes necessary to be competitive with other real estate locations? Does the site have serious physical constraints or regulatory barriers that would be costly to overcome? Is the net usable land area sufficient to construct a competitive development while maintaining adequate land for future aviation needs?

Site evaluation toolkit 147 In addition to these features, a positive scenario also results from compatible land use and zoning; unmet demand for commercial, industrial or retail development; and community and political support for growth and airport success. The lack of some of these features does not necessarily preclude a feasible development, but more expense, time, and risk will be involved to overcome the challenges that are present. If very few of these positive attributes are present, a development project may be very risky or unsuccessful. As the purpose of the development project is to enhance airport revenue, the profit (and revenue producing) potential of the development must be weighed against other strategies. ACRP Report 121: Innovative Revenue Strategies—An Airport Guide describes a collection of other revenue-producing options such as expanding airport-provided services (i.e., ground handling, fuel sales), natural resource and energy development, and value capture techniques. In this guidebook, the techniques outlined in Chapter 7, “Off-Airport Considerations and Revenue,” also suggest ways for the airport to generate revenue through off-airport development with less financial investment and lower risk. The airport may choose to pursue both on- and off-airport development strategies in parallel if resources are available. both on- and off-airport development strategies in parallel if resources are available.