Airport Master Plan 2012 - City of Waterville

Private Ownership/Private Management: A private entity owns the Airport and is
responsible for all operational, financial, and maintenance needs of the Airport. In some
instances, a government entity will transfer ownership of an Airport to a private enterprise
through a long-term lease, but will maintain ownership of the land the Airport is situated
upon.
An example of this type of operation is Morristown Municipal Airport in New Jersey which is under a
99-year lease with D.M. Airport Developers, Inc.
Each of these ownership options has its own pro’s and con’s, and are identified in the following sections.
Sole Ownership/Management
The pro’s of the City of Waterville acting as the sole owner of the Airport include:
Maintains its status as an eligible sponsor for both FAA AIP and MEDOT grants.
Maintains sole decision making power in the development and operation of the Airport. While
these decisions would need to meet the Grant Assurances of the FAA and MEDOT, the City
would maintain great latitude as sole owner.
Maintains the ability to influence and directly benefit from the economic value generated by the
Airport.
The con’s of sole ownership include:
As sole owner the City is solely responsible for the short and long term expenses of Airport
ownership. One key assurance that the City makes to the FAA in order to accept AIP funds is
that the Airport will be operated and maintained in a safe and efficient manner.
Airports, like any other asset, rarely satisfy all citizens or users. As sole owner, the City is faced
with listening to and doing their best to resolve all complaints about the Airport. In some areas
the Grant Assurances preclude the City from making decisions popular with the majority of
citizens.
The City is solely responsible for the financial burdens of the Airport, while the Airport provides
an economic asset for the Central Maine Region.
Joint Ownership/Management
The pro’s of joint ownership include:
Maintains its status as an eligible sponsor for both FAA AIP and MEDOT grants.
If development, operation, or maintenance costs are high, the City has a co-owner to share the
financial burden.
Joint ownership has the potential to obtain nearly identical economic impact as sole ownership,
and may see additional economic opportunities with the additional resources of the co-owner.
The con’s of joint ownership include:
Just as the City can stop many things objectionable to the City, the City’s partner(s) can hinder
the decision making on City proposals that they do not support.
In most cases, no one sponsor has complete decision making ability so the City may see
protracted decision making ability.
The City of Waterville Maine
Airport Management Structure Assessment – Page 7-19
Airport Solutions Group, LLC & The Louis Berger Group, Inc. December 2011