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It is the policy of the Ogden City administration that the term "first right of refusal" shall be interpreted and implemented as set forth hereinbelow.
A. First Right Of Refusal: The first right of refusal to renew an airport lease upon termination as set forth in Ogden municipal code section 8-3-3, is interpreted and shall be implemented as follows. Ogden City administration has the discretionary authority to determine and manage all future uses of airport property. If upon the pending expiration of a lease term, the city administration determines that it intends to continue to lease an airport parcel for the same purpose that it was previously leased to a tenant, then the city will first offer to renew the lease agreement of the prior tenant before it offers to lease the parcel to any other prospective tenant for the same use. The city shall have no duty to offer a lease renewal when it does not presently intend to continue the prior use for which the parcel was previously leased. No lease renewal is required to be offered to a tenant who is in breach or default of its lease agreement.
1. Application For Renewal: Any airport tenant seeking to renew a lease agreement must make a written request to renew the lease not less than sixty (60) days, nor more than six (6) months, before the expiration of its lease agreement. Upon receipt of the application, Ogden City will notify the applicant within thirty (30) days whether the city intends to continue the preexisting use of the parcel and whether it intends to make tenant an offer to renew the lease agreement.
2. Inspection: Prior to making an offer of lease renewal, the airport manager may have the leased premises inspected by city personnel to ensure that the leased premises are being used consistent with the lease agreement and all airport codes and policies, and that the premises are in a safe condition and not in violation of the then current international property maintenance code. A lease agreement renewal may be conditioned upon tenant resolution of any adverse findings of the inspector.
3. Lease Renewal Form: When lease agreement renewal is offered by the city to a tenant, the tenant may accept the offer by entering into a lease agreement in the form and format then in use by the city at the time the lease renewal is offered.
4. Lesser Lease Term: If the city's projected or planned uses are inconsistent with a five (5) year lease renewal term, but the city's projected or planned change of use is not immediate upon expiration of tenant's lease, the airport manager and tenant may negotiate a shorter lease renewal term if mutually agreeable to both parties.
B. Renewal Term Of Leases: As a general rule, a renewed lease agreement shall not endure for a term of more than five (5) years. This five (5) year renewal term limitation is not extended because a tenant subleases or assigns its lease agreement or because the city agrees to amend a lease agreement to name additional or alternative tenants to the lease agreement.
C. Grant Assurances: The airport manager shall implement this policy consistent with all FAA grant assurances, and shall consult with FAA officials as necessary to ensure compliance.
D. Other Lease Negotiations: Lease agreements may be negotiated for a lease period that exceeds the limits set forth in this policy when a tenant or prospective tenant agrees to make a substantial capital investment or for other good and valuable consideration that justifies a longer lease term in the discretion of the mayor or his delegate. Such negotiations shall be carried out consistent with FAA grant assurances and upon consultation with relevant FAA guidance. (Eff. 3-3-2021)