valuing airport facilities bill ingraham. you are successful if: $in = or >$out
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