OAR 738-015-0010: Commercial Aeronautical Lease Applicant's Financial Responsibility and Experience

(1) All persons applying for a lease for commercial aeronautical activity at a State-owned airport must demonstrate the financial capability and responsibility to: (a) Initiate proposed commercial aeronautical activities; (b) Construct proposed improvements; and (c) Provide working capital to perform proposed activities for the lease term. (2) The demonstration of financial capability shall include: (a) Projected cash flow and profit-and-loss calculations for the first five (5) years of the proposed operation; (b) A three-year historical profit-and-loss statement (if applicable); and (c) A current (within 90 days) balance sheet. (3) A prospective Lessee who will be constructing lease property improvements shall provide the Department evidence of financial capacity in one of the following forms: (a) A performance bond in the amount equal to the cost for constructing the proposed improvements, which may be supplied by a contractor; (b) An irrevocable letter of credit guaranteeing funds to complete the project; (c) An escrow agreement administered by a title and escrow company; or (d) A trust administered by a commercial bank. (4) The prospective Lessee shall furnish the Department with a statement of its past experience in providing the specified commercial aeronautical service for which the application is being made, including: (a) Résumés of management individuals who will be directly responsible for the proposed commercial operation; and (b) Business, financial and managerial references.