(A) Leasehold conditions. Operator lease terms shall be mutually agreed upon with due consideration for the financial investment and the need to amortize improvements to or on the leasehold. Operators have the right to further improve and develop its leasehold area. Any plans by the operator for leasehold improvements, modifications or like development shall be submitted prior to initiating construction to the Airport Commission/Town Council for review and approval.
(1) No operator leases or agreements will be executed for a period in excess of 20 years.
(2) Operator leaseholds may be subleased by a lessee only with prior written approval of the Town Council or designated representative.
(3) All improvements made by the operator to their leasehold property become the property of the town upon termination of the operator’s leasehold for such areas or facilities.
(4) No new leases will be executed, amended or assigned unless the existing lease is in compliance with the standards and requirements contained herein.
(B) Insurance coverage.
(1) Unless otherwise approved or directed by the town, each operator shall furnish satisfactory evidence of, at minimum, the following insurance coverage and conditions:
(a) Single limit airport premises liability, bodily injury, and property damage: $1,000,000;
(b) For hangar keeper’s liability or otherwise as applicable: $1,000,000; and
(c) Worker’s compensation insurance as required by the state.
(2) The Airport Commission/Town Council may choose, at their discretion, to modify insurance requirements on a case-by-case basis, depending on statutory and/or inherent risk factors. Operator insurance policies shall also declare the town as a named insured and shall contain a clause which shall provide that in the event lessee’s insurance coverage or any part thereof, should be cancelled or materially changed, the town shall receive at least 30 days’ prior written notice of such change.
(Ord. passed - -2019)