OAR 738-015-0020: Commercial Aeronautical Lease Provisions

(1) The prospective Lessee shall be provided a draft commercial lease for review only after the Department has approved the lease application. Before entering into the lease with ODA, the prospective Lessee shall review the applicable: (a) Operating Minimum Standards; (b) Airport Rules and Regulations; (c) Rates and Charges Policy; and (d) Leasing Policy for Commercial Aeronautical Activities. (2) The draft commercial lease shall include, but not be limited to, the following elements: (a) Description of lease property; (b) Term of lease; (c) Names and addresses of all responsible parties; (d) All fees and charges associated with occupying and operating on the lease property; (e) Insurance requirements; (f) Information on all taxes, liens and utilities; (g) Payment procedures relating to all fees and charges; (h) Approved commercial aeronautical activities; (i) Prohibited commercial aeronautical activities; (j) Compliance with FAA regulations and pertinent laws; (k) State aircraft and pilot registration requirements; (L) ODA entry onto lease property; (m) Access to lease property; (n) Fire prevention; (o) Maintenance requirements; (p) Landscaping; (q) Construction or alteration procedures; (r) Restrictions on hazardous substances; (s) Default and penalty provisions; (t) Remedies on default; (u) Bankruptcy; (v) Termination for airport development; (w) Transfer of airport ownership; (x) Sale of improvements; (y) Lease renewal options; (z) Subleasing provisions; (aa) Procedures for vacating the lease property; and (bb) Termination of lease provisions. (3) The base term for commercial aeronautical leases shall be no longer than forty-five (45) years. (4) If Lessee requests a renewal, the Department may agree to renew the lease, consistent with this rule, for one (1) five-year period, provided the total lease term does not exceed fifty (50) years. (5) At the expiration of the base term and any renewals, Lessee may make application for a new lease. The new lease application will be reviewed under the standards of OAR 738-015-0015, ODA Review of Application for Commercial Aeronautical Lease. The Department may negotiate a new lease if it determines that: (a) The existing lease is not in default; (b) The lease property is not required for other State-owned airport uses; (c) Lessee has met its obligations under the terms of the preceding lease; (d) Any improvements to the lease property are structurally sound and capable of safe and legal occupancy for the new lease term; and (e) The Department otherwise finds that a new lease is appropriate. (6) The duration of the new lease shall be at the Department's option. (7) Each lease renewal or each new lease that follows the base-term lease, shall incorporate all current terms and conditions for leases and any special terms the Department deems necessary based on the particular circumstances of the Lessee and lease property. (8) If the Department determines that a lease renewal or proposed new lease will not be offered to Lessee, the Department may require Lessee to remove any structures on the lease property, at Lessee's expense, at the expiration of the current lease between Lessee and ODA.