(A) Lease and special use permits; application. Commercial operators may obtain a lease to occupy specific facilities or space for conducting commercial activities at the airport or, in the alternative, obtain a special use permit to conduct commercial activities not requiring facilities or dedicated space. All applicants seeking a lease or special use permit must submit to the Airport Director an application and documentation confirming that the commercial operator will meet the minimum standards for leasing space, conducting business and complying with applicable federal, state and municipal laws, rules and regulations.
(B) Approval of lease. The Airport Board should review the lease application and submit its recommendations to the City Council. The City Council shall review and possibly approve each lease application submitted by the Airport Director. The City Council may, in addition, lease any airport property on such terms and conditions as the city may prescribe by negotiation, public auction or sealed bids. All leases made pursuant to public auction or sealed bids shall be made to the highest responsible bidder at the highest bid after notice in accordance with Title III. The city may, at its sole discretion, reject any and all bids.
(C) Issuance of special use permit. The special use permit is intended for those providing aviation related-services, which do not require a permanent facility on the airport. Commercial operators seeking a special use permit must submit a completed application and comply with the terms and conditions established for holders of a special use permit. The Airport Board will prepare and submit to the City Council, for its review and possible approval, an application form, which includes the standard rates, terms and conditions for special use permits. These rates will be reviewed, and recommended revisions submitted, on the same schedule as hangar and tie-down lease rates.
(D) Lease applications. Lease applications may require additional documentation, including description of the facilities or space to be leased, description of the commercial activity conducted, financial statements, statement of qualifications, copies of business licenses, proof of insurance, release of information forms, permits and references.
(E) Sub-leases; prior permission required. Sub-lease of leased premises shall not be permitted without prior written permission of the Airport Director.
(F) Term of lease and special use permit.
(1) Ground leases without leasehold improvements existing at the time of the lease, shall not exceed 25 years, with an option to renew as agreed by the parties.
(2) Leases for facilities or space in city-owned buildings may extend from one to ten years.
(3) Leases for city-owned hangar space, covered shades, tie-down space and vehicle storage space shall be referred to as special use lease agreements and shall be month-to-month up to one year.
(4) Special use lease agreements shall be issued and renewed by the Airport Director. Special use permits may be granted for up to two years. Special use permits shall be issued and renewed by the Airport Director.
(G) Business license, certifications, tax permits. Lessees and holders of special use permits shall obtain and maintain all federal, state and local business licenses, certifications and tax permits required by the commercial activity conducted.
(H) Insurance. Lessees shall provide the Airport Director a certificate of insurance verifying the coverage specified in the lease or special use permit. The city shall be named as an “additional named insured” and shall be provided a copy of the endorsement. The city shall be given at least 30 days written notice of policy alterations, cancellations or deletions.
(I) Performance bond. Commercial lessees shall obtain a performance bond in an amount equal to the first and last month lease rate or as otherwise determined by the city.
(J) Environmental impact statement. If the commercial activity to be conducted requires an environmental impact statement or study, the lessee or holder of the special use permit shall prepare and submit at its own expense such statement or study required to measure the environmental impact of the activity.
(K) Scope of commercial activity. Each commercial activity shall comply with applicable federal and state laws and regulations, this chapter, and the Page Municipal Airport Master Plan, Airport Layout Plan and Airport Certification Specifications.
(L) Rates and charges. The City Council shall approve the rates and charges to be assessed leaseholds and special use permits. Lessees shall pay a base rate determined by the fair market value of the properties leased and ancillary services and privileges provided by city to the lessee. The base rate shall be adjusted at least every three years. Lessees shall pay all utility services including propane, electricity, telephone, cable television, water, sewer and internet access for the area leased.
(M) Tenant improvements. If lessees construct permanent improvements to the leased city premises, the improvements shall become the property of the city at the termination of the lease unless the city requests removal. If the city requests such removal, all improvements must be removed at lessee’s expense within 60 days of the termination of the lease. This does not apply to privately owned hangars and/or similar structures on leased city land.
(N) Minimum standards. Minimum requirements for commercial activities defined in Articles 14-1 and 14-10 shall be guided by FAA A/C 150/5190-5. Requirements for minimum square footage of land, buildings, improvements and architectural appearance for land, buildings and improvements shall be established by the city and available through the office of the Airport Director. FAA A/C 150/5190-5, § 2-6, provides, “The sponsor of a federally obligated airport agrees to make the opportunity to engage in commercial aeronautical activities available to any person, firm or corporation that meets reasonable minimum standards established by the airport sponsor. In exchange for this opportunity, a business operator agrees to comply with minimum standards developed by the airport sponsor”. The Airport Director, with approval of the Airport Board and, if appropriate, the City Council, will develop and establish minimum standards for the Page Municipal Airport.
(O) Appraisal and survey. If an appraisal, survey or permits are necessary to determine the terms and conditions of the lease, the applicant shall pay the cost of the appraisal and/or survey.
(1976 Code, § 14-10) (Ord. 552-09, passed 10-22-2009)