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Pages 55-60

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From page 55...
... 55 6.1 Introduction Negotiation is an extremely broad yet common concept that takes place in many aspects of life -- home purchases, employment, and almost every lease agreement for the use and occupancy of another entity's property. While there is a common belief that negotiation must be legal in nature, negotiation can and often does occur in non-legal settings.
From page 56...
... 56 Estimating Market Value and Establishing Market Rent at Small Airports the perspectives of the airport and the developer or lessee may differ, which may lead to conflicting goals during the negotiation process. Similar to a compromise, a true negotiation will likely result in neither side attaining every goal as originally designed before the negotiation.
From page 57...
... Negotiation of Development and Lease Agreements 57 very important. Additionally, as also outlined by the survey results, respondents indicated that utilizing an independent third party to estimate market value or establish market rent before the negotiation enhances the airport's ability to initiate these discussions with realistic expectations.
From page 58...
... 58 Estimating Market Value and Establishing Market Rent at Small Airports be confident that the details of the development or lease agreement will not derail the overall negotiation process. 6.4 Development and Lease Agreement Considerations As stated previously, the FAA does not approve development or lease agreements, nor is an airport sponsor required to seek FAA review before executing a development or lease agreement for aeronautical purposes (except in unique circumstances such as, but not limited to, a lease term exceeding 50 years or non-aeronautical use of aeronautical land and improvements)
From page 59...
... Negotiation of Development and Lease Agreements 59 airport management, and airport property manager to objectively analyze each aspect of a development or lease agreement before entering a direct negotiation. A contemporary leasing policy outlines those key areas of an agreement, including, but not limited to, use of the leased premises and prohibited activities, length of term and option periods, capital investment requirements, insurance requirements, reversion, and property maintenance.
From page 60...
... 60 Estimating Market Value and Establishing Market Rent at Small Airports To be proactive in this area, the airport sponsor, airport management, and airport property manager should develop a reasonable and agreeable dispute resolution process. This proactive approach provides the basis for keeping the negotiation as local as possible, which is consistent with FAA guidance.

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