Item No. 7a attach 4_______ 
Meeting Date:  October 24, 2017 

Attachment 4: Transfer of Airport Property to EDD 
Additional details: 
If the property is currently generating revenues, these revenues factor into the calculation of
revenue sharing (50%) and serve to reduce passenger airline cost per enplaned passenger
(CPE). Eliminating this revenue source for the airport would thus increase CPE. 
Proceeds from the sale would be in the form of a cash transfer to the Airport Development
Fund. This will then provide additional cash to fund future capital improvements at the airport.
Cash funded assets are amortized and charged to the airline rate base so that the impact is
essentially the same as if the asset was debt funded. Thus, CPE would be the same. 
If the property was noise property funded (in part) with FAA noise grants, then the share of
proceeds from the sale equivalent to the original grant funded share of the property when it
was acquired, would be treated as grant money for purposes of reinvestment. Among other
conditions, this means the capital costs of new assets funded with this money would be
excluded from the airline rate base. In this case, there would be a CPE benefit.
In summary, while the airport benefits from having more cash to fund capital improvements,
the impact on CPE is not as clear. If the property generates income, the net effect is likely an
overall increase in CPE due to reduced revenue sharing. This could be offset to some extent if
the reinvested money is treated as grant money.