Revenue Use Requirement:
Ground lease revenues must be used for airport-related purposes as mandated by FAA grant assurances and 49 U.S.C. § 47107.Fair Market Value (FMV) Requirement:
Airports must charge fair market value (FMV) for non-aeronautical leases unless a specific exception applies.Aeronautical Use Exception:
Ground leases for aeronautical uses (e.g., hangars, FBOs) may be below FMV if they are reasonable and non-discriminatory.No Unjust Discrimination:
Lease terms and conditions must be applied fairly and consistently to similarly situated airport users.No Exclusive Rights:
Airports cannot grant exclusive rights to any one entity for aeronautical services, except in very limited cases approved by the FAA.Prior FAA Approval (in some cases):
Long-term leases, leases involving federal grant obligations, or significant changes in land use may require FAA review or approval.Land Release Requirement:
If airport land is no longer needed for airport purposes and is being leased for non-aeronautical uses, a formal release from FAA is required.Compliance with Grant Assurances:
Ground leases must comply with FAA grant assurances, including maintaining self-sustainability and ensuring proper airport management.Reasonableness of Terms:
Lease durations, renewals, and reversion clauses must be structured to protect the airport’s long-term interests.Environmental and Planning Reviews:
Leased developments must comply with environmental regulations and be consistent with the airport’s master plan or ALP (Airport Layout Plan).
