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Pages 94-119

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From page 94...
... ACRP Report 114: Guidebook for Through-The-Fence Operations94 CHAPTER SIX STRUCTURING TTF OPERATIONS 6.1 Introduction 6.2 Policy 6.3 Application 6.4 Rents and Fees 6.5 Types of Agreements 6.6 TTF Agreement Terms and Conditions 6.7 Wrap-Up 6.1 INTRODUCTION More and more, publicly owned and operated assets (like airports) are expected to be managed as a business with the goal of being financially self-sustaining.
From page 95...
... 95 ACRP Report 114: Guidebook for Through-The-Fence Operations 6.2 POLICY As discussed in Chapter 4: Airport Planning, Management, and Compliance Tools, airport sponsor ordinances can be used to govern the planning, development, operation, and management of the airport and set the stage for the development, implementation, and enforcement of planning, management, and compliance tools. Most importantly, an airport sponsor ordinance provides a mechanism for enforcing airport policies, standards, rules, and regulations (i.e., primary management and compliance documents)
From page 96...
... ACRP Report 114: Guidebook for Through-The-Fence Operations96 GROUNDS FOR DENIAL Some examples of possible grounds for denial of an application for TTF operations include: The TTF entity's interests and/or the TTF operation are inconsistent with the mission, vision, goals, or objectives of the airport; the best interest of the airport sponsor; any assurances; or any regulatory measure. The TTF entity and/or TTF operation, for any reason, do not comply with the policies, standards, rules, and regulations adopted by the airport sponsor for TTF operations.
From page 97...
... 97 ACRP Report 114: Guidebook for Through-The-Fence Operations ALL ENTITIES (REGARDLESS OF TYPE OF TTF ACTIVITY) Entity information – legal name, address, phone number Type of entity – public entity (e.g., federal, state, local, etc.)
From page 98...
... ACRP Report 114: Guidebook for Through-The-Fence Operations98 6.4 RENTS AND FEES One of the most significant financial issues associated with TTF operations is creating economic parity between TTF entities and on-airport operators, tenants, and/or users. On-airport entities pay airport sponsors rents and fees for occupying and/or using airport land, infrastructure, and/or improvements and engaging in aeronautical activities.
From page 99...
... 99 ACRP Report 114: Guidebook for Through-The-Fence Operations ESTABLISHING RENTS AND FEES Based on the research, interviews, and survey conducted for this guidebook, airport sponsors utilize a number of methodologies to establish rents and fees for TTF operations. At most of the airports with TTF operations, one or more of the following types of monthly and/or annual rents and fees are typically charged.
From page 100...
... ACRP Report 114: Guidebook for Through-The-Fence Operations100 activities on TTF property. In addition to the fees for the land, infrastructure, and/or improvements on the TTF property, an airport sponsor should charge the same fees established for on-airport FBOs and SASOs (in order to maintain economic parity)
From page 101...
... 101 ACRP Report 114: Guidebook for Through-The-Fence Operations Further, as discussed in Chapter 3: Legal Interests and Principles regarding the court ruling in Kingman Airport Authority v. Hays, a court ruled that the easement ended at the airport gate and that the TTF entity would be required to pay applicable TTF access fees.
From page 102...
... ACRP Report 114: Guidebook for Through-The-Fence Operations102 EXECUTION A deed restriction generally arises when property is being conveyed (e.g., an entity sells land for construction of an airport)
From page 103...
... 103 ACRP Report 114: Guidebook for Through-The-Fence Operations CONSIDERATIONS An easement is, in some ways, an appropriate fit for TTF agreements, as it grants a TTF entity the right to access airport land. It also gives the entity an interest in real property.
From page 104...
... ACRP Report 114: Guidebook for Through-The-Fence Operations104 MODIFICATIONS AND TERMINATION A revocable license/permit may be modified or terminated at the will of the airport sponsor. Other types of licenses/permits may include provisions that govern modification and termination.
From page 105...
... 105 ACRP Report 114: Guidebook for Through-The-Fence Operations 6.6 TTF AGREEMENT TERMS AND CONDITIONS Section 136 stipulates that a TTF agreement for residential TTF activities shall be in writing and that such an agreement shall "prescribe the rights, responsibilities, charges, duration, and other terms" the airport sponsor deems necessary. As indicated throughout this guidebook, this would be considered a best practice for all types of TTF activities.
From page 106...
... ACRP Report 114: Guidebook for Through-The-Fence Operations106 AUTHORITY FOR PERMITTING TTF OPERATIONS Generally, the authority of an airport sponsor to enter into a TTF agreement will derive from the entity's powers as the property owner and as the airport sponsor, and may also be exercised pursuant to an express state statute, local ordinance, or airport management and compliance document. The recitals should describe the applicable authority.
From page 107...
... 107ACRP Report 114: Guidebook for Through-The-Fence Operations TERM OF AGREEMENT START DATE, END DATE, AND DURATION The start date of the TTF agreement will often be the effective date, but it may be later as well. The duration of the agreement should be for a specified term.
From page 108...
... ACRP Report 114: Guidebook for Through-The-Fence Operations108 METHOD OF TTF ACCESS AND ACCESS CONTROLS The description of the method of TTF access should include detailed information about the way the TTF entity will access the airport (e.g., gate cards, access codes, etc.)
From page 109...
... 109 ACRP Report 114: Guidebook for Through-The-Fence Operations PROHIBITED AND/OR RESTRICTED TTF ACTIVITIES The TTF agreement should clearly identify in detail the prohibited and/or restricted TTF activities on the TTF property (e.g., retail fuel sales, commercial aeronautical, or residential)
From page 110...
... ACRP Report 114: Guidebook for Through-The-Fence Operations110 WHEN AND WHERE RENTS AND FEES ARE DUE For simplicity and predictability, rents and fees should generally be due and payable (without invoice) at regular intervals (e.g., monthly, quarterly, annually, etc.)
From page 111...
... 111 ACRP Report 114: Guidebook for Through-The-Fence Operations RESPONSIBILITY FOR COSTS OF CONSTRUCTION OF INFRASTRUCTURE AND/OR IMPROVEMENTS The party who pays the costs of construction may be different than the party who is responsible for construction. This provision should identify the responsibilities of each party.
From page 112...
... ACRP Report 114: Guidebook for Through-The-Fence Operations112 AIRPORT SPONSOR'S DUTY TO KEEP THE AIRPORT OPEN The airport sponsor may agree that it has a duty to act in good faith to keep the airport open, subject to certain limitations. Additionally, it may be desirable to include provisions that describe the airport sponsor's duty to maintain the infrastructure and/or improvements that are essential to TTF operations (e.g., the airport sponsor is responsible for maintaining the taxilanes from the fence line to the airport airside infrastructure)
From page 113...
... 113 ACRP Report 114: Guidebook for Through-The-Fence Operations LICENSES AND CERTIFICATES This provision would require the TTF entity to maintain any necessary licenses, certificates, permits, or other authorizations required for its operations. Such authorizations may be required from the FAA, SAO, or other governmental entities.
From page 114...
... ACRP Report 114: Guidebook for Through-The-Fence Operations114 RIGHT OF INSPECTION In this section, the rights of the airport sponsor and government entities to enter the TTF property to ensure compliance with the TTF agreement; the airport's policies, standards, rules and regulations; and applicable regulatory measures should be addressed. Typically, this provision imposes notice requirements and time restrictions for conducting such inspections.
From page 115...
... 115 ACRP Report 114: Guidebook for Through-The-Fence Operations RIGHT TO DEVELOP THE AIRPORT Airport sponsors will often have plans for the future development of the airport (e.g., modifying or adding aprons, taxiways, or runways or making other improvements at the airport)
From page 116...
... ACRP Report 114: Guidebook for Through-The-Fence Operations116 REIMBURSING THE AIRPORT SPONSOR FOR PENALTIES The airport sponsor may wish to require that any penalties imposed on it resulting from the TTF entity's acts or inactions will be the responsibility of the entity. Such a provision should specify whether the fault of the TTF entity needs to be complete before this provision applies or if a partial fault will result in a partial reimbursement.
From page 117...
... 117 ACRP Report 114: Guidebook for Through-The-Fence Operations AT-WILL TERMINATION In addition to the events giving rise to termination, the parties may agree that either party may elect to terminate the TTF agreement with prior notice in a certain form (e.g., 30 days advance written notice)
From page 118...
... ACRP Report 114: Guidebook for Through-The-Fence Operations118 TTF ENTITY HAS NO AUTHORITY TO CREATE LIENS AGAINST AIRPORT SPONSOR'S PROPERTY This provision stipulates that the TTF entity's right to use the airport sponsor's property is merely contractual (or, at best, less-than-fee interest in a lease) and that the entity may not create a lien against or otherwise obligate the airport sponsor's property.
From page 119...
... 119 ACRP Report 114: Guidebook for Through-The-Fence Operations ATTORNEYS FEES AND COURT COSTS The parties may agree that each party shall pay its own legal fees arising from any dispute. Alternatively, the parties may agree that the prevailing party shall be awarded attorney's fees and court costs.

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