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No person shall be granted an exclusive right to conduct any commercial aeronautical activity or any other aeronautical related commercial activity in the Airport. No person shall be permitted to use any land or structure to conduct any commercial aeronautical activity or any other aeronautical related commercial activity or the solicitation of
business unless in accordance with the standards herein established.
Prior to the leasing of any space, whether ground or building, and prior to commencing any operation or business in the Airport, a prospective lessee shall present evidence satisfactory to the City that the prospective lessee meets the minimum standards established herein for engaging in such business in the Airport. The City, as owner of the Airport, may engage in such activities as it deems to be appropriate and in its best interest.
(a) The lessee shall, prior to exercising the privileges of the lease, obtain and during the term of his lease, keep current all State, Federal and local licenses required for each phase of his/her Airport activity and comply at all times during the term of his/her lease with all Federal, State and local laws and regulations.
(b) Upon execution of the lease agreement, and before the applicant is given possession of the leasehold, the applicant shall post a performance bond of eighty percent (80%) of the amount of the total estimated construction cost of all leasehold capital improvements to be erected by the applicant, guaranteeing the construction of all such facilities in accordance with the plans and specifications thereon within the time specified under the lease. If such construction or improvements are valued at less than ten thousand dollars ($10,000), no performance bond is required.
(c) Before the applicant is given possession of the leasehold, the applicant shall provide the City with a surety bond in the amount equal to two months of the annual lease guaranteeing payment of rentals reserved under the lease.
(d) Each lessee is expressly prohibited from conducting any activity at the Airport other than as provided for by the lease.
(e) If the nature of the activity to be conducted by the lessee requires an environmental impact statement, the lessee, at his/her expense, shall prepare and submit such a statement to measure the effect of the activity to be conducted on the ecology of the area which may be impacted.
(f) Each activity to be conducted by the lessee shall be conducted and located in conformity with the Airport Master Plan, Airport Operations Manual and the Airport Layout Plan, in effect at this time and as may be amended from time to time.
(g) All leasehold improvements shall be constructed in accordance with detailed construction plans and specifications which shall be submitted to the Airport Manager and have approval of the City. All construction shall meet the building code requirements of all applicable governing bodies.
(h) The prospective lessee shall disclose if the applicant has previously been held in default of any lease agreement, contract, license or permit relating to the operation of a business by a court of law or other cognizant legal authority.
(i) The prospective lessee shall have a satisfactory credit rating. Refusal to submit necessary information for making a credit appraisal shall disqualify the applicant from further consideration.
(j) The prospective lessee shall demonstrate a current financial net worth showing that he/she holds unencumbered current assets in a total amount equaling at least three months' estimated maintenance and operating expenses. Applicant shall also demonstrate that he/she has the capital required or unconditional financial backing sufficient to construct all leasehold improvements required by these standards and shall unconditionally commit to such construction within a specified period of time. If commitments of the lease are not followed, the City may, at its option, take necessary steps to foreclose on the performance bond.
(k) All structures and improvements hereafter erected or placed on the leasehold shall require the lessee to obtain the prior written approval thereof from the FAA. For approval by the FAA, the lessee shall submit thereto, in triplicate, "Notice of Construction or Alteration" on FAA Form 7460-1, properly completed and accompanied by a map or sketch, prepared at a scale large enough to permit evaluation of the proposed buildings or structures with respect to airspace utilization and FAA Technical Standard Ord. N-18 and showing the height and dimensions of such buildings or structures and their relationship to the Airport.
(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.
(a) Lessee agrees to operate the premises leased for the use and benefit of the public:
(1) To furnish good, prompt and efficient service, adequate to meet all the reasonable demands for its service at the Airport.
(2) To furnish such service on a fair, equal and nondiscriminatory basis to all users thereof.
(3) To charge fair, reasonable and nondiscriminatory prices for each unit of sale or service, provided that the lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions.
(b) The lessee, his/her agents and employees shall not discriminate against any person or class of persons by reason of race, color, creed, sex, national origin, or sexual orientation in providing any service or in the use of any of its facilities provided for the public, in any manner prohibited by part 152 of the Federal Aviation Regulations. The lessee further agrees to comply with such enforcement procedures as the United States might demand that the lessor take in order to comply with the sponsor's assurances.
(c) The lessor shall be responsible for the payment of all property taxes for the areas leased to it. The lessee shall be responsible for the payment of all other taxes whether City, State or Federal which arise or may arise as a result of its operation conducted on the leased premises.
(d) It is understood and agreed that nothing contained in the lease shall be construed to grant or authorize the granting of an exclusive right of service.
(Ord. 18-24. Passed 1-30-18.)
The lessee shall be fully responsible and assume all risks from fire, storms and accidents to their own employees or the general public and shall take out and maintain appropriate insurance coverage as agreed to in the lease. Such insurance coverage shall be maintained during the term of the lease agreement. The City shall be named as an additional insured on each policy and shall be provided evidence of the existence of stipulated insurance in the form of copies of insurance policies or certificates of insurance. The City shall be given at least thirty days' written notice of policy alterations, cancellations or deletions.
The lessor reserves the right to increase or decrease the amount of minimum coverage required, commensurate with the type and extent of service to be performed.
The lessee shall protect the public and the City from any and all lawful damages, claims or liability caused by its operations at the Airport; and at its sole cost and expense, provide premises liability in the minimum amount of one million dollars ($1,000,000) combined single-limit, bodily injury and property damage. In addition, the City may require the lessee to provide product liability insurance in a minimum amount of one million dollars ($1,000,000) combined single-limit, bodily injury and property damage.
Where applicable, the lessee shall be required to provide and keep in force, during the term of the lease, hangarkeepers liability insurance with the minimum amount being one hundred thousand dollars ($100,000) per aircraft for each occurrence.
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