Hangars and other buildings or structures owned by the city may be leased to private individuals, companies, or corporations on a monthly or yearly basis for the storage of aircraft and ancillary equipment or to conduct a commercial fixed base operation (FBO). The city may lease property within the building area or other portions of the airport for the construction of hangars, buildings, lean-tos, aprons, taxiways, and auto parking lots in accordance with an approved airport layout plan and design guidelines. Aviation-related use must be given priority in the use of all leased or privately owned property, buildings or structures. If the aviation needs of the airport are sufficiently met, the city council may authorize non-aviation use of any portion of the airport or any building on the airport on a case-by-case basis. Application for such non-aviation use shall be made to the city council, and approval from TxDOT aviation division must be received prior to granting authorization for non-aviation use.
(1) Lease term.
No lease of airport property or facilities shall be granted for a term exceeding 20 years; however, the initial term of a lease of airport property or facility may exceed twenty (20) years but in no case more than forty (40) years if a loan or deed of trust lien is obtained expressly for construction of the facility which will become property of the city at the end of the lease term, free and clear of all liens and encumbrances. Non-aviation leases shall not exceed eighteen (18) months.
(2) Construction on leased property.
(A) The FAA Form 7460-1, “Notice of Proposed Construction or Alteration” (or most current FAA approved form), will be completed for all construction and submitted to the airport manager to forward to the TxDOT aviation division. The TxDOT aviation division will review the form for completeness and accuracy, then forward to the FAA for the air space study. A favorable determination must be received from the FAA prior to any construction on the airport. No hangar or structure may be erected beyond the building restriction line or in conflict with the approved airport layout or development plan.
(B) All plans and specifications for construction, renovation, remodeling, or refurbishing of the leased premises shall meet all current standard fire and building codes published by the Southern Building Code Congress and the National Electrical Code, and shall provide for the construction to be from material satisfactory and acceptable to the city council/commissioners court. All construction must be of a compatible standard capable of withstanding winds of 100 mph with doors open or closed.
(C) The city council’s written approval of the plans and specifications must be obtained prior to construction of the improvements.
(D) Construction must begin within one hundred twenty (120) days after the effective date of the lease or final comment from TxDOT and the FAA for the filed air space study as required by FAR part 77, whichever date is later. Construction must be substantially completed within one hundred eighty (180) days of start of construction. Projects anticipated to exceed 180 construction days require approval of the airport manager. The improvements on the leased premises shall remain the tenant’s property until expiration or termination of the lease and its covenants or as otherwise agreed to in the contract between the city council and the tenant.
(E) Any privately owned structure or hangar not in use for aviation purposes for a period in excess of ninety (90) days or not available for lease or sublease for aviation purposes, unless so authorized for non-aviation uses by the city council, must be removed after due notice to the owner in writing or the city council will consider such structures or hangars abandoned and will seek title to such structure or hangar.
(F) Leased land from which any building, hangar, or structure is removed, after due notice, will be cleared, cleaned, and put back in its original or acceptable condition.
(3) Assignment and subletting.
Without the prior written consent of the city council, the leased premises or any rights thereunder (except to a leasehold mortgagee as herein provided) may not be assigned. Any assignment or subletting shall be expressly subject to all the terms and provisions of the original lease.
(4) Flying clubs.
A flying club (“club”) shall meet the following standards:
(A) At the time of applying for a lease, license, permit or agreement to operate at the airport, the club shall furnish the airport manager with a copy of its documents of organization; the club’s list of members, including names of officers and managers; evidence of required insurance; a description of all aircraft used; evidence that such aircraft are properly certificated; evidence of ownership of such aircraft; and any operating rules of the club.
(B) All aircraft used by the club shall be owned by the club or leased exclusively by written agreement to the club, and all ownership or lease rights to such aircraft must be vested on a pro-rata basis in all of the club’s members. The property rights of the club members shall be equal, and no part of any revenues received by the club shall inure to the direct benefit of any member (e.g., by salary or bonus). The club shall not derive greater revenue from the use of its aircraft than the amount necessary for the operation, maintenance and replacement of its aircraft and facilities.
(C) The club’s aircraft shall not be used by any person other than the club’s members and shall not be used by any person for hire, charter, or air taxi. Flight instruction may be given in club aircraft.
(5) Environmental issues and indemnification.
Any tenant of the airport, its agents, employees, independent contractors, or sublessees shall not install, store, use, treat, transport or dispose of any:
(B) Urea formaldehyde foam insulation;
(C) Transformers or other equipment which contains dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million; or
(D) Any other chemical, material, air pollutant, toxic pollutant, waste, or substance which is regulated as toxic or hazardous or exposure to which is prohibited, limited or regulated by the Resource Conservation Recovery Act, the Comprehensive and Environmental Response Compensation and Liability Act, the Hazardous Materials Transportation Act, the Toxic Substances Control Act, the Clean Air Act, and/or the Clean Water Act or any other federal, state, county, regional, local or other governmental authority, or which, even if not so regulated, may or could pose a hazard to the health and safety of the occupants of the leased premises, and which is either:
(i) In amounts in excess of that permitted or deemed safe under applicable law; or
(ii) In any manner which is prohibited or deemed unsafe under applicable law.
(The substances referred to in subsection (A), (B), (C) or (D) are collectively referred to hereinafter as “hazardous materials”). |
(6) Environmental cleanup laws.
An airport tenant will, at their own expense, comply with all existing or hereafter enacted laws relating to hazardous materials (collectively, “cleanup laws”) in effect at the time of the lease, and all future laws thereafter. An airport tenant will, at their own expense, make all submissions to provide all information to and comply with all requirements of the appropriate governmental authority (the “authority”) under the cleanup laws. Should any authority require that a cleanup plan be prepared and that a cleanup be undertaken because of the existence of hazardous materials which were installed, stored, used, treated, transported, disposed of or discharged on the leased premises by an airport tenant, its agents, employees, independent contractors or sublessees during the term of a lease, the airport tenant will prepare and submit the required plans and financial assurances in accordance with such cleanup laws. The airport shall be indemnified and held harmless from and against all obligations, damages, injunctions, fines, penalties, demands, claims, costs, expenses, actions, liabilities, suits, proceedings and losses of whatever nature (including, without limitation, attorneys’ fees and court costs), and all cleanup or removal costs and all actions of any kind arising out of or in any way connected with the installation, storage, use, treatment, transporting, disposal or discharge of hazardous materials in or on the leased premises by an airport tenant.
(7) Environmental notices.
An airport tenant shall promptly supply the city council with copies of any notices, correspondence and submissions made or received from any governmental authorities of the United States Environmental Protection Agency, the United States Occupational Safety and Health Administration, or any other local, state or federal authority that requires submission of any information concerning environmental matters or hazardous materials.
(8) Environmental survival.
An airport tenant’s liability pursuant to any environmental issue shall survive the expiration or earlier termination of their lease.
(9) Stormwater compliance.
(A) The airport is subject to federal stormwater regulations, 40 C.F.R. part
122, for “vehicle maintenance shops” (including vehicle rehabilitation, mechanical repairs, painting, fueling and lubrication), equipment cleaning operations and/or deicing operations that occur at the airport as defined in these regulations, and, if applicable, state stormwater regulations. Each airport tenant shall become familiar with these stormwater regulations if it conducts “vehicle maintenance” or operates equipment cleaning operations and/or deicing activities as defined in the federal stormwater regulations.
(B) The city or county shall take steps necessary to apply for or obtain a stormwater discharge permit as required by the applicable federal and/or state regulations, including the leased property occupied or operated by an airport tenant. A stormwater discharge permit issued to the city or county may name an airport tenant as a co-permittee.
(C) An airport tenant’s close cooperation is necessary to ensure compliance with any stormwater discharge permit terms and conditions, as well as to ensure safety and to minimize costs. An airport tenant may have to implement and maintain “best management practices” to minimize the exposure of stormwater (and snow melt) to “significant materials” generated, stored, handled or otherwise used as defined in the federal stormwater regulations.
(D) The city’s and county’s stormwater discharge permit is incorporated by reference into each lease and any subsequent renewals.
(E) The city or county will provide an airport tenant with a written notice of those stormwater discharge permit requirements that are in the city’s or county’s stormwater permit that a tenant will be obligated to perform from time to time, including, but not limited to:
(i) Certification of non-stormwater discharges;
(ii) Collection of stormwater samples;
(iii) Preparation of stormwater pollution prevention or similar plans;
(iv) Implementation of “good housekeeping” measures or best management practices, and maintenance of necessary records.
Such written notice shall include applicable deadlines and an opportunity to dispute any of the stormwater discharge permit requirements. |
(F) Each airport tenant shall participate in any organized task force or other work group established to coordinate stormwater activities of the airport.
(10) Nondiscrimination covenants.
(A) Each lease will include as a covenant running with the land to ensure that:
(i) No person on the grounds of race, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the leased property;
(ii) In the construction of any improvements on, over or under such land and the furnishing of services thereon, no person, on the grounds of race, color, sex or national origin, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination.
(B) The right to conduct aeronautical activities for furnishing services to the public is granted to an airport tenant subject to the agreement:
(i) To furnish said services on a fair, equal and not unjustly discriminatory basis to all users.
(ii) To charge fair, reasonable, and not unjustly discriminatory prices for each unit or service, provided an allowance may be made to make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers.
(11) Insurance.
An airport tenant shall during the term of the lease maintain at their cost and expense insurance relating to the leased premises as follows:
(A) Insurance against loss or damage to improvements by fire, lightning, and other risks included under standard extended coverage policies.
(B) General public liability insurance against claims for bodily injury, death or property damage occurring on, in, or about the leased premises, such insurance to afford protection to the city or county of not less than $500,000.00 with respect to any one person, $1,000,000.00 with respect to any one accident and not less than $200,000.00 with respect to property damage.
(C) Hangar keeper’s liability insurance providing coverage for aircraft not owned by the tenant in the following limits: $200,000.00 per aircraft and $400,000.00 per occurrence on property damage to aircraft in the care, custody, or control of the tenant.
(D) All such policies of insurance shall be issued by insurance companies acceptable to the city, shall name the city as an additional insured or loss payee, as the case may be, and shall provide for at least ten (10) days’ written notice prior to cancellation or modification.
(12) Hold harmless.
The city shall not be liable to an airport tenant’s employees, agents, servants, customers, or invitees, or to any other person whomsoever, for any injury to persons or damages to property on or about the leased premises or any adjacent area owned by the city.
(Ordinance 393, sec. 7, adopted 9/13/2011)