A. Ground Leases:
1. Aeronautical Activities: Any ground lease tenant leasing improved land at the airport for commercial or noncommercial aeronautical activities shall annually pay the City twenty eight cents ($0.28) per square foot of land. Any ground lease tenant leasing unimproved land at the airport for commercial or noncommercial aeronautical activities shall annually pay the City fifteen cents ($0.15) per square foot. Beginning January 1, 2021, the above lease rates shall be increased for three (3) consecutive years, in addition to the Consumer Price Increase (CPI) adjustment provided by section 8-5-8, as follows:
Aeronautical Land Usage | Begin January 1, 2021 | Begin January 1, 2022 | Begin January 1, 2023 |
2021 Lease Rate (including 2021 CPI increase) | Rate increase (in addition to CPI increase) | Rate increase (in addition to CPI increase) | |
Improved Land | $0.40 per sq. ft. | $0.05 per sq. ft. | $0.05 per sq. ft. |
Unimproved Land | $0.25 per sq. ft. | $0.05 per sq. ft. | $0.05 per sq. ft. |
2. Nonaeronautical Activities: Any ground lease tenant leasing improved land at the airport for commercial or noncommercial nonaeronautical activities shall annually pay the City four (4) times the rate for improved land used for aeronautical activities. Any ground lease tenant leasing unimproved land at the airport for commercial or noncommercial nonaeronautical activities shall annually pay the City four (4) times the rate for unimproved land used for aeronautical activities. Except, the airport manager may approve an alternative nonaeronautical lease rate for airport land lying outside the air operations area, provided the lease rate is not less than fair market value as demonstrated by an appraisal or information market survey conducted in the manner set forth in subsection 4-3A-5A2 of this code. A tenant shall owe the nonaeronautical activities rate for all time periods that tenant uses leased ground for nonaeronautical activities, regardless of whether the nonaeronautical use is permitted or allowed by tenant’s lease.
3. Definitions: For purposes of this section, “improved land” means land that is occupied by hangars or other structures; “unimproved land” means land not occupied by structures, including all support areas such as ramps, uncovered storage, or customer parking areas.
B. Facility Leases:
1. Market Value. City-owned airport facilities will be leased for fair market rental value, consistent with dimensions, location, age, quality, finish, utility of the premises and other factors affecting marketability and market rental rate. The airport manager shall reasonably ascertain a market rental rate for facility leases by any commercially reasonable method, including but not limited to, appraisal or information market survey comparing similar private facilities on the airport or facilities at similar airports. The mayor may adopt administrative policies establishing lease rate classifications, formulas, rate charts or other reasonable methods to direct the airport manager in setting market rental rates for varying airport facilities. (Ord. 2018-14, 6-26-2018; amd. Ord. 2020-23, 7-7-2020; Ord. 2021-21, 4-20-2021)