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4/13/76 AC 150/5100-10A • • c. Rental revenue earned from the leasing of structures acquired with the land prior to the removal of such structures. d. The value of improvements acquired with the land will be determined on the basis of the use or disposition of such improvements: (1) Where nonairport improvements have been sold, the net proceeds from the sale will be deducted from the purchase price to determine the cost of land for project purposes. Improvements determined to have "no salvage value" must be accounted for by letter to the FAA, explaining what disposition was made of the improvements and the dates of such disposition. (2) Where nonairport improvements have been leased or operated by the sponsor prior to their disposal, the net amount received, including any salvage value, not exceeding the portion of the purchase price attributable thereto? shall be applied to reduce acquisition costs. (3) For improvements which are to remain in place indefinitely, the portion of the total price which was attributable to such improvements shall be determined and deducted from the total purchase price. e. Net proceeds from the sale of portions of acquired tracts which are in excess of airport needs. f. The value of buildings or facilities acquired with the land which the sponsor wishes to retain for some nonairport use. g• The concept of "net cost of bare land needed for airport purposes" contemplates that the land will be cleared of nonairport structures and that the credits resulting therefrom, such as those previously enumerated, will be applied to reduce the cost of the land. h. The cost of excess land cannot be participated in except in cases where the remaining part is considered to be an uneconomic remnant. Where the sponsor acquired a tract of land, only a portion of which is included in ADAP, Federal funds may be used to participate only in the project portion. Division of the purchase price between project land and nonproject land depends upon the relative values, usually determinable from analysis of appraisal reports prepared by qualified appraisers. In those instances where FAA has determined the specific area of land necessary for airport purposes prior to appraisal and the sponsor acquires the larger parcel, the appraiser Chap 3 Par 32 Page 17