(a) Term of Lease. A ground lease with no leasehold improvements existing at the time of the lease shall only be for a period of time sufficient for the lessee to amortize his/her cost of fixed capital improvements such as, but not limited to, construction of buildings, improvements and paving of parking lots or tiedown areas. The term of the lease shall be commensurate with the value of the leasehold improvement. If no leasehold improvement is made, the term of the lease shall be negotiable.
(b) Condition of Lease. In all leases where the lessee constructs improvements or alters existing improvements to the leased premises, including but not limited to buildings, parking lots, hangars and parking aprons, such improvements shall become the property of the City at the termination of the lease unless the City determines that it would not be in its best interest to own such improvements. In that event, the lessee shall remove such improvements within sixty days of the termination of the lease at the lessee's sole expense.
(c) City Buy-out of Improvements. The City, at its option, may purchase any and all leasehold improvements or alterations to existing improvements to the leased premises. The purchase by the City shall be at a negotiated price and be included in the lease. Such prices shall be on a pro-rated basis defined in the lease during the term of the lease.
(d) General.
(1) Building space requirements may be provided in one building, attached buildings or separate buildings.
(2) All applicants and their employees who are required to hold licenses and permits shall maintain such licenses and permits during the course of the lease agreement.
(3) All persons offering any of the services or combinations thereof may do so only under written lease or agreement with the Airport owner.
(e) Rates and Charges. All leases shall be subject to negotiations with the City. Such leases may include but not be limited to the following financial arrangements:
(1) A standard rate: All lessees may pay to the City a standard rate which shall be determined by the fair market value of the properties leased by the City to the lessee and remuneration for ancillary services and privileges provided by the City to the lease.
(2) Percentage rental: In all leases except leases for nonrevenue producing commercial activities, the lessee may pay to the City, in addition to the standard rate, such percentage of the gross revenue of the lessee's activities conducted at the Airport as is mutually agreed to by both parties.
(3) In addition, the City may impose upon the lessee, by lease, such other charges and fees as may be appropriate under the circumstances.
(f) The provisions of these minimum standards shall in no way negate or cause to be null or void existing leases with the Fixed Base Operators and Airport tenants at the Municipal Airport. No new leases or renewals shall be executed with persons at the Airport, nor shall amendments to existing leases be executed unless they are made subject to the provisions of these minimum standards.
(g) Any commercial aeronautical activity not listed under SFBO or GFBO activities shall be reviewed and approved on its own merit as the occasion or need arises and shall then be included in these minimum standards.