A. Policy: It shall be the airport's policy to negotiate lease terms that make the airport as self-sufficient as possible; that provide flexibility to manage the airport; that provide high quality and all necessary services; and that provide a fair return on lessee's investment in capital improvements.
B. Proposal And Permits: A request to the city to lease airport land or facilities for commercial activities, to issue a commercial aeronautical activities permit, or to issue any other permit to conduct nonaeronautical commercial activities should be made in writing and include a proposal which sets forth the scope of operations proposed, including the following:
1. The name, address and telephone number of the applicant.
2. The services the applicant will offer.
3. The proposed date of commencement of the activity and term of conducting the same.
4. A detailed description of the scope of the intended operation.
5. The means and methods to be employed to accomplish the contemplated services.
6. The amount of land the applicant desires to lease.
7. The size and position of the building the applicant will lease or construct, if applicable.
8. The number of aircraft the applicant will provide, if applicable.
9. The number and qualifications of persons the applicant will employ.
10. The proposed hours of operation.
11. The amount and type of insurance coverage the applicant will maintain.
12. Evidence of the applicant's financial capability to perform and provide the proposed services and facilities.
C. Types of Leases:
1. Ground Leases. The city may enter into a ground lease of airport land and permit tenant to construct improvements thereon, including hangars, buildings, structures, signs, and other improvements. It is the policy of the city that airport ground leases be granted for a term of years that will reasonably allow tenant to amortize its capital investment of construction expenses, while preserving the city’s reversionary and economic interests in airport property. Airport manager may enter into airport ground leases within the following parameters.
a. New Construction: Ground leases for new construction upon leased premises having a Construction Lease Date after April 30, 2021, may be granted for a term of years sufficient to amortize tenant’s capital investment in the construction, up to a term of forty (40) years.
b. Preexisting Construction. Ground leases for premises having a Construction Lease Date prior to April 30, 2021, shall be subject to the following:
(1) Lease Renewal. A new or renewed ground lease may be granted for airport premises upon expiration of a prior ground lease, provided that:
(A) Tenant makes timely application and meets all airport qualifications for lease renewal;
(B) The lease term of years will not exceed forty (40) years from the Construction Lease Date; alternatively, tenant agrees to pay fair market rent for the land and all improvements located thereon for any period exceeding 40 years from the Construction Lease Date;
(C) The premises are not part of a:
(i) A planned redevelopment of airport property; or
(ii) An airport plan to change the use of the premises; and
(D) For at least two years prior to the proposed ground lease, tenant has been in timely compliance with:
(i) Tenant’s ground lease, and any other airport agreement tenant has with the City; and,
(ii) All airport ordinances, rules, regulations, and policies.
(2) New Agreement. The granting of any renewal lease term may be conditioned upon tenant entering into a new lease agreement using the city’s lease agreement form(s) then in use at the time of renewal.
c. City’s Reversionary Interests.
(1) Reversion upon Termination. Upon expiration or other termination of any ground lease agreement, the leased premises shall revert to the possession and control of the city. The improvements installed thereon will become the property of the city or will be removed from the premises at the tenant’s expense, at the option of the city.
(A) The above Subsection i shall not be deemed to revoke any clause found in a current ground lease agreement that specifically grants tenant an option to remove or leave a structure on the premises upon termination of the lease agreement.
(2) Reversion Clause. Every ground lease agreement shall include a clause setting forth the city’s reversionary interests in the leasehold premises, in a form approved by the city attorney.
2. Facility Leases. The airport manager may enter into a facility lease for airport improvements and land owned by the city, as follows.
a. Lease Term. Facility leases are typically entered into for a lease term of 5 years or less. Longer lease terms may be granted where tenant commits to make substantial capital improvements to city-owned premises or to make other substantial investments to provide key airport services.
b. Expiration. Upon expiration or other termination of a facility lease, tenant shall quit the premises and return possession of the premises to the city, leaving the premises in the same condition as at commencement of the lease, reasonable wear and tear excepted.
c. Prior Tenant Preference. The tenant of an expiring ground lease or facility lease may be granted a preference to enter into a new facility lease for the same premises prior to the city offering to lease the premises to another party, provided that:
(1) Tenant makes timely application and meets all qualifications for a facility lease;
(2) The premises are not part of a:
(A) A planned redevelopment of airport property; or
(B) an airport plan to change the use of the premises;
(3) For at least two years prior to the proposed facility lease, tenant has been in timely compliance with:
(A) Tenant’s ground lease, and any other airport agreement tenant has with the City; and,
(B) All airport ordinances, rules, regulations, and policies.
3. Final Decision: The above lease terms are not absolute and are subject to negotiation. A final decision will be made by the mayor, upon consultation with the FAA.
D. Mandatory Provisions: Every lease or agreement entered into shall be subject to and shall contain the following provisions, or similar substitute provisions approved by the city attorney:
1. The lessee agrees to comply with provisions of this title, and as it may hereafter be amended, and with implementing administrative orders as they may hereafter be adopted or amended. The lessee further agrees that more than three (3) violations of this title during any three (3) month period by lessee, its agents or employees; or any other pattern of violations that manifests reckless disregard for the health, safety and general welfare of the public and/or airport users shall be a material breach which may terminate the agreement at the option of the city. The city shall not exercise this option until it has notified the lessee and given the lessee a reasonable opportunity to retrain employees or otherwise demonstrate that lessee, its employees and agents can and will conform to this title. In addition to the above penalties, this agreement may be canceled by the city if the lessee fails to pay, when due, the whole or any part of the amounts agreed upon for rents and charges and such default continues for thirty (30) days after the city has demanded payment in writing.
2. The city may terminate any nonaeronautically related lease upon ninety (90) day notice to the lessee.
3. The lessee shall maintain the leased premises in a reasonable condition of repair, cleanliness and general maintenance.
4. It is understood and agreed that the lessee is an independent contractor and not an agent or employee of the city, and the city is an independent contractor and not an agent or employee of the lessee with regard to its acts or omissions hereunder.
5. Lessee shall protect, defend and hold lessor and its officials, employees, agents and volunteers completely harmless from and against any and all liabilities, losses, suits, claims, judgments, fines or demands arising by reason of injury or death of any person or damage to any property, including all reasonable costs for investigation and defense thereof (including, but not limited to, attorney fees, court costs and expert fees), of any nature whatsoever arising out of or incident to this agreement and/or the use or occupancy of the leased premises or the acts or omissions of lessee's officers, agents, employees, contractors, subcontractors, licensees or invitees, regardless of where the injury, death or damage may occur, unless such injury, death or damage is caused by the sole negligence of the lessor. The lessor shall give the lessee reasonable notice of any such claims or actions. The lessee shall also use counsel reasonably acceptable to lessor in carrying out its obligations hereunder. The provisions of this subsection shall survive the expiration or early termination of this agreement. In carrying out any of the provisions herein, or in exercising any power or authority granted to lessee, there shall be no liability upon any official of the city, its authorized assistants, consultants or employees, either personally or as officials of the city, it being understood that in such matters they act as agents and representatives of Ogden City Corporation. It is further understood and agreed that the city assumes no responsibility for any damages or losses that may occur to the lessee's property, except the obligation that the city will not wilfully, intentionally or negligently damage the property of the lessee.
6. If the city is required to terminate a ground lease through legal action or by exercise of its discretionary power under the lease, and the lessee is not in default, the city shall pay to lessee the fair market rental value of leasehold improvements for the unexpired portion of the lease term, less ground lease rents payable by lessee for the same period.
7. No person may sublease or assign any facility or lease or contract at the airport except with approval of the city. The city shall be entitled to receive any revenue that the lessee/assignor of a city owned building receives from a sublessee/assignee that exceeds the amount the lessee/assignee is required to pay the city pursuant to the lessee's/assignee's agreement.
8. The airport manager or a designated representative may enter any facility or property on the airport at reasonable times and for reasonable purposes without prior notice.
9. There is hereby reserved to the city, its successors and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the premises hereby leased, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, not known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from or operating on the airport.
10. The lessee by accepting a lease expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure or object nor permit the growth of any tree on the land leased hereunder exceeding the obstacle identification surfaces as specified by FAR part 77. In the event the aforesaid covenant is breached, the lessor reserves the right to enter upon the land leased hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the lessees.
11. In addition to those provisions required by subsections D1 through D10 of this section, every agreement concerning a commercial activity for which payments are based on revenue generated shall contain the following provision: The concessionaire/permit holder agrees to maintain records in compliance with section 8-3-6 of this chapter and to fully cooperate with any audit hereunder. Concessionaire/permit holder further agrees to pay costs of the audit when required thereunder.
E. Aeronautical Activities: In addition to the provisions in subsection D of this section, every lease or agreement concerning aeronautical activity shall be subject to and shall contain the following provisions, or similar substitute provisions approved by the city attorney:
1. The lessee agrees to operate the premises leased for the use and benefit of the public and to furnish such service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, however, that the lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers.
2. The lessee, for himself, his heirs, personal representatives, successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained or otherwise operated on the said property described in this lease for a purpose for which a department of transportation program or activity is extended or for any other purpose involving the provision of a similar service or benefit, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to title 49, code of federal regulations, department of transportation, subtitle A, office of the secretary, part 21, nondiscrimination in federally assisted programs of the department of transportation-effectuation of title VI of the civil rights act of 1964 and any provisions of said regulations as may in the future be amended.
3. The lessee, for himself, his personal representatives, successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that no person on the grounds of sex, race, color, creed, national origin or disability shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities, that in the construction of any improvements on, over or under such land and the furnishings of services thereof, no person on the grounds of sex, race, color, creed, national origin or disability shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; that the lessee shall use the premises in compliance with all other requirements imposed by, or pursuant to title 49, code of federal regulations, department of transportation, subtitle A, office of the secretary, part 21, nondiscrimination in federally assisted programs of the department of transportation - effectuation of title VI of the civil rights act of 1964, and such provisions of said regulations as may in the future be amended.
4. That in the event of a breach of any of the nondiscrimination covenants pursuant to part 21 of the regulations of the office of the secretary of transportation, the lessor shall have the right to terminate this lease and to reenter and repossess said land and the facilities thereon and hold the same as if said lease had never been made or issued.
5. It is clearly understood and agreed by the lessee that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform.
6. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right.
7. Lessor reserves the right to further develop or improve the airport as it sees fit, regardless of the desires or views of the lessee and without interference or hindrance from lessee.
8. Lessor reserves the right, but without obligation to lessee, to maintain and keep in repair the landing areas of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of lessee in this regard.
9. During the time of war or national emergency, lessor shall have the right to lease the landing area or any part thereof to the United States government for military or naval use and if such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the government, shall be suspended.
10. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of the lessor, would limit the usefulness of the airport or constitute a hazard to aircraft.
11. This lease shall be subordinate to the provisions of any existing or future agreement between lessor and the United States, relative to the operation or maintenance of the airport, the execution of which has been or may be required as a condition precedent to the expenditures of federal funds for the development of the airport.
12. The lessor reserves the right to temporarily close the airport or any of the facilities thereon for maintenance, improvement or for the safety of the public.
F. Commercial Aeronautical Activities Permit: A commercial aeronautical activities permit is required of all persons conducting commercial aeronautical activities upon the airport who do not have an airport lease with the city permitting the activity, such as when the person subleases airport property from another airport lessee. A commercial aeronautical activities permit is required of all persons conducting commercial aeronautical activities upon the airpark. A commercial aeronautical activities permit shall be subject to and shall contain terms similar to an airport lease, as follows:
1. A commercial aeronautical activities permit shall endure for a term not to exceed the length of a lease term for conducting similar activities as set forth in subsection C of this section, and shall not exceed the term of any existing lease of airport or airpark property upon which the commercial aeronautical activities are proposed to be conducted.
2. A commercial aeronautical activities permit shall be subject to and shall contain substantially the same mandatory provisions included within an airport lease, as set forth in subsections D and E of this section, modified as reasonably required and approved by the city attorney to make such provisions applicable to a permit rather than a lease.
G. Noncommercial Activities: A request to the city to lease airport facilities or land for noncommercial activities should be made in writing and include a proposal which sets forth the scope of the activity, which shall minimally include:
1. The name, address and phone number of the applicant.
2. The amount of land the applicant desires to lease.
3. The building space the applicant will lease or construct.
H. Processing: The city will approve or deny any application under subsections B and G of this section within thirty (30) days of its submission to the airport manager, except that the thirty (30) days may be extended if the applicant has been requested to provide additional information.
(Ord. 2005-45, 7-19-2005; amd. Ord. 2021-21, 4-20-2021)