Valuing Airport Facilities Bill Ingraham. YOU ARE SUCCESSFUL IF: $in = or >$out.

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Presentation transcript:

Valuing Airport Facilities Bill Ingraham

YOU ARE SUCCESSFUL IF: $in = or >$out

Rate Setting Methods Bids or Proposals Cost Recovery Rental Rate Survey Return on Facility Valuation

Valuing Facilities (Appraisal) Sales Comparison Income Capitalization Cost Summation

How to Determine Term Set term for all similar leases Sufficient term to amortize investment How often have you heard… “But that is not long enough to recover my investment!”

One Method Given a cost to develop facilities ($) Given a rental value for equivalent facilities ($) Given a return on investment (ROI) Given an inflation assumption (CPI) You can find a length of time where investment in developing facilities equals prepayment of rental on similar facilities

Detailed Estimate of Off-Site Costs

Detailed Estimate of On-Site Costs

Detailed Estimate of Indirect Costs

Summary of Development Costs

Valuing Airport Facilities Bill Ingraham