Generating Revenue from Commercial Development On or Adjacent to Airports (2017) / Chapter Skim
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Pages 91-147
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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.
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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.
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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.
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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.
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Site evaluation toolkit 95 Status of ALP Notes FAA-approved? Last updated?
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96 Generating revenue from Commercial Development On or adjacent to airports Content of ALP Check to select Notes Aeronautical uses? AOA identified?
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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.
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98 Generating revenue from Commercial Development On or adjacent to airports Aeronautical development Notes Size in acres? Contiguous area?
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Site evaluation toolkit 99 Non-aeronautical development Notes Size in acres? Contiguous area?
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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.
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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.
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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?
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Site evaluation toolkit 103 Market connections/quality-oflife metrics Check to select Notes Access to industrial concentrations? Major residential areas nearby?
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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.
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Site evaluation toolkit 105 Net usable land area calculation Acres Notes Gross acreage (A)
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106 Generating revenue from Commercial Development On or adjacent to airports Land characteristics Area of concern? Notes Yes No Sloping or level?
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Site evaluation toolkit 107 Environmental topics Area of concern? NotesYes No Former industrial use?
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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.
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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.
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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?
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Site evaluation toolkit 111 Available service, costs and challenges Notes Public or private sewer service? Service provider?
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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.
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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?
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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.
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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.
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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.
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Site evaluation toolkit 117 System Capacity SHORTFALL IN DEMAND VERSUS CAPACITY? Does the system (public or private)
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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.
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Site evaluation toolkit 119 Identify utility providers Notes Electric service? Natural gas?
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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?
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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.
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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.
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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.
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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?
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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.
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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.
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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.
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128 Generating revenue from Commercial Development On or adjacent to airports FAA ARP SOP 3.00? A standard operating procedure (SOP)
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Site evaluation toolkit 129 Does NEPA apply? If yes, which review applies?
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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.
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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.
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132 Generating revenue from Commercial Development On or adjacent to airports Minimum lot size? What is the minimum lot size permitted?
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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.
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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.
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Site evaluation toolkit 135 5.13 Market Conditions KNOW Understanding market conditions is an up-front necessity. This sentence could be the numberone most important statement in this Site Evaluation Toolkit.
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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.
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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.
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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.
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Site evaluation toolkit 139 Existing conditions Check to select Notes Training programs available? Housing choices?
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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.
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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.
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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?
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Site evaluation toolkit 143 INCENTIVE PROGRAMS USED IN THE REGION? What incentive programs, if any, are currently in use in the region?
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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?
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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.
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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?
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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.
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