Usage options for surplus airport
property include a golf course
and skating rink.
Many airports around the country that do not have lucrative concessions or oil wells gushing dollars are looking for new ways to increase revenues. They often look at non-aeronautical uses to supplement income,
especially when there is ample surplus property.
On the surface, this is not a bad idea because it
not only diversifies the economic income basket
but also makes use of land that is not producing
any rate of return. Before proceeding, there are
several hurdles that need to be considered, and
what follows is not an exhaustive survey of all
possibilities but rather a sampling of the most
Typically, there are four avenues to converting
aeronautical property for non-aeronautical
purposes. It should be noted here that FAA covers
many of the issues discussed here in FAA Order
5190.6B, and airport officials should consult the
order and also meet with their local FAA Airport
Districts Office (ADO) staff before proceeding to
ensure compliance with the grant assurances.
First, an airport may declare excess property as
surplus and sell it after the airport has affirmed
it will not now or in the future need the property
for airport purposes. This could put an airport in
a bind if down the road it needed more property,
unless, of course, the purpose of the sale involved
some kind of a land swap. The sale price must be
fair market value (FMV) set by appraisal, and the
proceeds must be used to reimburse FAA if the
BY ROBERT OLISLAGERS, A.A.E.