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Backup Documents 06/27/2017 Item #16G1 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO 1 6 G 1 THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routinglines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. 2. 3. County Attorney Office County Attorney Office JAB 11-27-18 4. BCC Office Board of County ASA Commissioners 5. Minutes and Records Clerk of Court's Office t 991I l 8 l ;ct>en PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Contact Information 239-252-8442 Contact/Department Agenda Date Item was June 27,2017 ✓ Agenda Item Number 16G1 ✓ Approved by the BCC Type of Document Collier County Airport Authority Leasing Policy Number of Original 1 Attached Update / Documents Attached ✓ PO number or account N/A number if document is to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature 51-44/W) Q JAB 2. Does the document need to be sent to another agency for additional signatures? If yes, JAB provide the Contact Information(Name; Agency;Address; Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be JAB signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's JAB Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the JAB document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's JAB signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip JAB should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 06/27/2017 and all changes made during JAB the meeting have been incorporated in the attached document. The County Attorney's Office has reviewed the changes, if applicable. 9. Initials of attorney verifying that the attached document is the version approved by the BCC,all changes directed by the BCC have been made,and the document is ready for the r� Chairman's signature. 16G1 MEMORANDUM Date: November 29, 2018 To: Justin Lobb, Airport Manager Collier County Airport Authority From: Teresa Cannon, Deputy Clerk Minutes and Records Department Re: Collier County Airport Authority Leasing Policy Update Attached you will find a copy of the agreement as referenced above (Item #16G1), approved by the Collier County Board of County Commissioners on Tuesday, June 27, 2017. The original Agreement will be held in the Board's Minutes and Records Department to be kept as part of the Board's Official Records. If you have any questions, please contact me at 252-8411. Thank you. Attachment 1 6 G 1 COLLIER COUNTY AIRPORT AUTHORITY o a rn AIRPORT LEASING POLICYco J 0 RPNIP "TX"vol Cang oi v N 0 a C7 Approved as to form and legal COLLIER CO T AIRPO U HORITY Sufficiency: Ce •By: A :. Jenn A. Belpedio Andy Solis,Chairman Assistant County Atto ey co z Adopted: May 9, 1994 A``l'TST • CItY AL K.KINZ CLERK Revised: :::::' s. Revised: ttessti as to Chairman s 'signature only. Revised: 5/23/2017 Y:\Administration\Policies and Procedures\Policies\Leasing Policy 0 Airport Leasing Policy 16G1 TABLE OF CONTENTS Page SECTION I GENERAL POLICY 3 Agreement Classifications 3 Agreements Required 4 d Lease/Operating Agreement Categories 4 a. SECTION II GENERAL GUIDELINES FOR AIRPORT AGREEMENTS . . 6 ti .0 0. Lease Application Process 6 Lease Proposal Review 8 issSECTION III LEASE RATES, TERMS AND PROVIDIONS 10 0 Rates and Charges 10 Terms of Lease 10 Title to Improvements 11 Materials 12 Assignment/Subletting/ 12 Public Service Goals 13 Encumbrances 13 N Indemnification and Insurance 13 Taxes 13 E-- Rules and Regulations 14 w Appraisals 14 Variance 14 —� Performance Bonds 14 Relocation of Improvements 14 z Zoning 15 Q Gross Receipts Language 15 Dominant Agreements 15 Other Lease Provisions 15 0 SECTION IV HANGAR WAITING LIST POLICY 16 Collier County Airport Authority Hangar Waiting List Policy for General Aircraft Hangar Units . . . 16 u -2- Airport Leasing Policy 16G1 SECTION I GENERAL POLICY In order to promote and develop a fair and reasonable operating environment for all persons, firms, or organizations who enter into agreements with the Collier County Airport Authority, hereinafter referred to as the `Authority',) to conduct a commercial or non-commercial operation on any of its airports,hereinafter referred to as Airport, the following Policy is hereby adopted. The Collier County Airport Authority operates the Immokalee Regional Airport, Everglades Airpark and Marco Island Executive Airport in Collier County, Florida. As used herein the word a "tenant" is not limited to true tenants, but includes any individual, person or entity that has been granted any right, license or privilege to occupy or use any property or conduct any activity irrespective of the form of the agreement, permit, and/or license that grants any such right, a° license or privilege. The Authority hereby instructs the Division Director or Designee to ensure that reasonable efforts are made when negotiating agreements (types and classifications listed below)to: 1. Promote market rents that are intended to make the Authority as financially self- sufficient as possible 2. Minimize operational costs in the leased areas to the Authority. 3. Foster growth of both aviation and non-aviation development (where appropriate) on ti airport property. 4. Attract private capital investment for airport development. 0 5. Comply with Federal Aviation Administration (FAA) and State obligations, policies and regulations. o a Agreement Classifications The Authority will entertain, at a minimum,the following four Agreement classifications: LEASE AGREEMENTS: Agreements by which the Airport Authority leases land, building o and/or facility leases with airport tenants who maintain a valid lease agreement with the re Authority. SUBLEASE AGREEMENTS. These Agreements are used whereby a sub-lessee (in privity with the Airport Authority) subleases some or all of the lessee's rights and obligations to a sublessee. LICENSE AGREEMENTS: Land, building and/or facility leases with granted privileges of conducting aviation related or airport support operations. These agreements do not convey any interest in real property or in any personal property. These agreements convey only a bare license that has no interest coupled thereto. These agreements do not create any relationship of landlord and tenant and no licensee has any rights as a tenant. Airport Leasing Policy 1 6 G 1 OPERATING AGREEMENTS: Agreements granting the privilege of conducting aviation specifically granted related activities or airport support operations. These are use license agreements that do not convey any interest in real property or personal property. Agreements Required With the exception of transient (non-based) aeronautical operators, no person, firm, organization, club, or other entity whatsoever shall be permitted to operate any business or commercial activity on any airport or base and engage in any commercial or non-commercial activities at the respective airport without an approved and fully executed lease, sublease. license, or operating agreement with the Authority or fully approved and executed assignment of same. The intent of this requirement is to protect the investment and privileges of bona fide operations on the airport and to try to ensure that fees or charges will be required from every a. user of the airport. Provided, however, that a business may be permitted to continue operation as a tenant at will after the expiration of an approved lease, sublease, license and/or operating agreement while renewal or extension negotiations are in progress and being conducted in good faith and there appear to be prospects of coming to mutual agreement. The Division Director or o Designee shall be the judge of whether good faith negotiations with a viable prospect mutual agreement exists. Lease/Operating Agreement Categories M C 1. Flight Training Service Center. 2. Aircraft Maintenance, Overhaul, and Parts Shop. r- 3. Specialized Commercial Flying Service. 4. Specialized Aircraft Repair Service. 5. Aircraft Hangar Storage. 6. Scheduled Passenger Air Carrier. w 7. Non-Scheduled Passenger Air Carrier. c.- 8. Cargo Air Carrier. 9. Non-Aviation Land and/or Building Lease. a 10. On Airport Car Rental Operations. a 11. Off Airport Car Rental Operations. Q 12. Courtesy Vehicle Operations. 13. Vending Machine Operations. 14. Airport brochure display/distribution operations. o 15. Display Cabinet Operations. 16. Advertising signs on Airport. 17. Advertising signs off Airport. 18. Utility Easements. 19. Automobile Parking. 20. Food, Beverage,and/or Merchandising Concessions. 21. Government Leases. 22. Aviation Easements. 23. Operating Privilege Agreements. 24. Clubs. 25. Skydiving. 26. Hangar License Agreements. 27. Other. -4- Airport Leasing Policy 16G1 Agreements, which the Authority shall not entertain: Consistent with Department of Transportation, Federal Aviation Administration order 5190.6B, the Authority shall retain proprietary exclusive rights of the following aeronautical services: 1. Sale of aircraft fuel to others. 2. Rental of ramp space to others for aircraft tie-downs or any other purpose. The Authority shall not permit any tenant, licensee or other occupant of any airport to engage in any of the above referenced aeronautical services. The Authority shall provide those aeronautical services with its own employees and resources. a. rn - REMAINDER OF PAGE INTENTIONALLY LEFT BLANK - M a) U F- 0 N > W H W U J 0 a. z Lu J H 0 n rt d E U Q -5- Airport Leasing Policy 16G1 SECTION II GENERAL GUIDELINES FOR AIRPORT AGREEMENTS The following guidelines shall be used when the Division Director or Designee negotiates agreements. This policy is not all-inclusive and, where exclusions exist, application of professional airport leasing practices shall be applied on a case-by-case basis. Airport property is generally leased on a first come, first served basis, unless specifically exempted in the "Lease Application Process." If multiple parties are interested in leasing an available parcel of Airport property, Authority staff shall seek competitive proposals via public advertisement on the Airport Authority website and/or a newspaper of general circulation after establishing a starting rent using an appraisal process or market analysis to set market value. If competitive proposals are solicited, Airport staff, with the assistance of the Procurement a.. Services Division, will abide by the Procurement Ordinance #13-69, as amended, and this policy, and will make the final selection based on criteria following under "Lease Application Process" and "Lease Proposal Review." Tenants in good standing whose property adjoins a parcel available for lease (whether vacant or developed) will be given the first opportunity to lease the adjoining parcel. F2- Unless ?Unless specifically exempted in the "Lease Application Process" or elsewhere in this Policy, all CD persons or businesses seeking to become tenants at the Airport must first submit a fully completed written application to the Division Director or Designee,together with any additional information which may be requested by the Division Director or Designee, County Management or County Attorney. ti Lease requests will be reviewed and evaluated according to the stipulations outlined in this w Policy, and in terms of whether the proposed use conforms to each of the following overarching 0 goals: w ›- 1. 1. The use is shown to be appropriate and consistent with the ALP, Master Plan, and other =� relevant land use planning documents that pertain to the Airport. a. 2. The use does not constitute a violation of any Airport Grant Assurances which have been incorporated within a Grant Agreement entered by the Authority. Q 3. The use complies with all requirements and provisions contained in the adopted policies, w procedures and standards of the Airport and Collier County. ce0 The information contained in the lease request should provide sufficient detail to enable the a._ Authority to adequately determine a potential tenant's financial standing, their ability to undertake construction in a timely manner (if the tenant is going to build on a vacant parcel), their ability and experience to provide the services to the general aviation public or commercial aviation industry (if the tenant is an aviation-related business), which are described in the proposal, and the amount of investment in and the overall appearance of the facilities that are to be constructed or leased by the tenant. Lease Application Process (including Subleases and Assignment of Leases) (Note: Parties wishing to rent tie-downs, hangars, T-hangars solely for short-term (e.g. month- to-month or year-to-year) storage of aircraft, and who do not desire or need significant -6- Airport Leasing Policy 16G1 leasehold improvements or other special accommodations, are exempt from the following requirements.) Any person, group of people, firm,corporation or organization desiring to conduct a commercial activity of any type within the boundaries of the Airport must first secure written authorization from the Authority to do so. Written authorization from the Authority is typically provided in the form of a lease for building space or land area, but may also be in the form of an appropriate permit allowing the activity in question to be conducted for a given period time on Airport property. is The process for obtaining authorization for a commercial activity from the Authority begins with an applicant submitting a written proposal, or Lease Application, which details the type of operation(s) being proposed. Depending on the term of the lease being sought, or the size, a. scope, and complexity of the commercial activity, an applicant may be requested by the Airport Manager to provide some or all of the following information. In general, longer term lease requests will require more information than shorter term requests. The Lease Application should include the following: 0 a 1. A cover letter from the Applicant identifying the name of the business,a description of the services or products to be provided,and the primary contact's name,phone number and email address. 2. A short description of the proposed commercial activity with sufficient narrative to 7.3 adequately explain the benefits of the activity to the Airport and local community. 3. A business plan that provides sufficient detail about the commercial activity being N proposed. 4. The names and contact information (mailing address, phone numbers, email, etc.)of all parties having an interest in the business and those that will be directly responsible for w the day-to-day management of the business. r The amount and location (if known)of vacant property that the tenant desires to lease o (accompanied by a map showing the location of the property in question). a 5. The type of facilities which are to be constructed,purchased or leased(whichever is relevant). c7i 6. The purchase price of existing facilities(where relevant). 7. The services to be offered,proposed hours of operation, projected employment broken cc down by number of permanent and temporary employees, full-time and part-time 0 positions,job titles, average wage or wage scale anticipated to be paid, and the number _ of aircraft(if any)that are to be based and/or operated at the Airport in conjunction with Q the business. 8. Evidence of financial capability to provide the services and facilities proposed(this may extend to providing a current financial statement and/or tax returns for the previous 3 years). 9. Evidence demonstrating a history of satisfactory performance of a similar commercial activity at other sites(preferably airports), including dates and location. Record of any insolvency or bankruptcy proceeding in any past business relationships over the past 10 years. 10. Aeronautical qualifications,including years of experience in the proposed operation,past experience in other related activities, and four professional references. 11. Other information the Authority may require and specifically request. -7- Airport Leasing Policy I 6 G 1 Lease Proposal Review Following receipt of an application to lease or sublease Airport land or facilities, or for an Assignment of Lease, the Airport Manager will evaluate the submitted proposal for completeness against the criteria outlined in the Lease Application Process. The Airport Manager may also perform a background investigation relative to the applicant's criminal history, credit worthiness and past business performance. Incomplete proposals will be returned to the applicant. Following review by Authority staff, applications may be denied for one or more of the following reasons: 1. The application does not comply with or meet the provisions of this policy. a. 2. The applicant or their proposed operations fail to meet the qualifications, standards and requirements enforced by the Authority or Collier County. 3. The applicant's proposed operations or construction activities will create a safety or security hazard. o 4. The granting of the application will require unauthorized expenditure of Authority funds, labor or materials on the land or facilities described in, or related to,the application. 5. The operation is unlikely to provide a positive rate of return co 6. There is no appropriate or adequate available space or facilities on the Airport property M to accommodate the activity of the applicant. 7. The proposed operation, development or construction contemplated does not conform to the approved Airport Layout Plan or Airport Master Plan. 8. The development or use of the area requested will result in a congestion of aircraft or buildings, or will result in excessive interference with the operations of other existing tenants on the Airport, such as preventing free access and egress, or will result in depriving,without adequate compensation, an existing tenant the use of portions of their °w leased area. r 9. A party applying, or having an interest in the business, has supplied false information, or o has misrepresented a material fact in the application or in supporting documents, or has a failed to make full disclosure on the application. 10. A party applying,or having an interest in the business, has a record of violating the rules d and regulations of the Authority, or those of any other airport, or the rules and regulations of any State or Federal Agency. �- 11. A party applying, or having an interest in the business,has defaulted in the performance o of any lease or other agreement with the Authority or any lease or other agreement at any ce other Airport. 12. A party applying, or having an interest in the business, is not sufficiently credit worthy and responsible in the judgment of the Authority to provide and maintain the business to which the application relates, and to promptly pay amounts due under its lease with the Authority. 13. The applicant has committed a crime, or violated a local ordinance, rule, or regulation, which adversely reflects on its ability to conduct the operation applied for, or otherwise renders applicant unsuitable. 14. Any other reason that would result in an activity deemed not consistent with Airport policy, or not to be in the best interest of the Authority and/or the Florida Aviation System. 15. The applicant proposes a"Through the Fence"operation that is inconsistent with Section 136 of the FAA Modernization and Reform Act of 2012. -8- Airport Leasing Policy 16G1 The diagram shown below delineates the steps of a typical lease application process for review and approval by the Airport Authority. Many of these steps are discussed in greater detail elsewhere in this policy. Depending on the size, scope and complexity of the commercial activity that is being proposed for a given parcel of land or facility, the time-frame to complete the entire application process can vary from eight to sixteen weeks or more. LEASE APPLICATION/PROPOSAL PROCESS (Typically a 8 to 16 Week Process*) Start Submit Application for New Lease, Federal/State Approval a) Sublease,or (Non-aviation uses ONLY) Assignment of Existing Lease -� FAA ADO/FDOT District 1 Applicant t 0 1 • Review Application for completeness and compliance Recommendation for with Leasing Policy ApprovaUDenial to County • Perform Due Diligence Commission Research Airport Authority ti • Undertake Development of Lease Terms W • Prepare legal documents for execution Lease Execution v Airport Manager/County Applicant/County Zi 0 Management/County Attorney Attorney/Authority as z Finish W F- *Assumes that no reviews and/or approvals are needed from outside agencies. p a tr a, E t v m 4S Y -9- Airport Leasing Policy 1 6 G 1 SECTION III LEASE RATES, TERMS AND PROVISIONS Rates and Charges FDOT/FAA guidelines require that the Authority be as financially self-sustaining as possible. Whenever possible, rental rates for unimproved Airport land or existing hangars and related facilities used for commercial aviation activities are set at market value of the property in use. Market value will be determined through an appraisal or market analysis of comparable parcels a or structures undertaken by the Authority. A rate adjustment based on the Consumer Price Index—Urban (CPI-U) for the southeast US region will be applied to leases on either a regular basis, but no more than annually, between appraisals to facilitate parity between new and o_ longstanding tenants. In an effort to stimulate economic development, support aviation industry growth, and .07 encourage airport property development, the Authority may consider a reduced rate for the following property uses: c. 1. Large Scale Development. 2, Aeronautical Manufacturing. 3. Substantial aviation-related educational facilities (such as an FAA-certified A&P M Program or a Flight Training Program). 4. Any commercial business that creates and maintains new jobs that pay, on average, no less than 115 percent of the average annual wage for Collier County, as determined by tss the Collier County Office of Business and Economic Development. N w Each Airport tenant, subtenant, licensee or occupant user of the Airport shall pay the then applicable and appropriate rate or fee for such tenancy or use. Operating expenses may also be w included in Airport Leases for the cost of upkeep and maintenance of common areas and facilities in and adjacent to the leased areas. A "Rate Structure" updated and approved by the 7.1 Authority annually will serve as a guide when negotiating fees. a 1.7 Terms of Lease w -J All Leases: At the expiration of an existing commercial lease, or at any time during the tenure of the lease,the current lessee (or a potential buyer of lessee's interest in the lease)may submit a o request to the Authority for a new or revised lease to be executed, or to have the term of their cc lease reevaluated. The Authority is not obligated to approve such a request, but will give serious consideration to doing so when it has been shown that: E a. The Lessee is in good standing(i.e., compliant with existing lease terms and conditions), b. The Authority has determined that there is no immediate need to use the property for other aviation-related purposes when the current lease expires, c. The existing/proposed property use is consistent with the Airport ALP, Master Plan, and other relevant land use planning documents. d. The Lessee can demonstrate that they are willing and able to optimize the use of Airport property to the Authority's full satisfaction. e. The Lessee has made additional investments in leasehold improvements or created additional new positions that exceed any requirements that were originally specified in their lease agreement with the Authority. -10- I 6 G 1 Airport Leasing Policy f. The interests of the public and the community as a whole are best served by the Lessee's continued presence on Airport property. Unless the Lessee is proposing a substantial investment into either the existing improvements or is proposing new improvements, the standard lease term should not be more than 5 years for aviation leases where the improvements have either reverted to the Authority or are owned by the Authority. Long Term Leases: The Collier County Airport Authority recognizes that allowing commercial tenants to amortize their investments over a longer period of time can encourage further investment in Airport property. To this end, the Authority will consider entering into a lease with a term up to the maximum limit allowed by FDOT or the FAA (the more restrictive limit "6— applying) in those instances where a potential tenant has demonstrated to the Authority's a. satisfaction that they are prepared to make a significant investment in one or more of the following areas: a, J a. Make a significant initial capital investment in new construction on the property. b. Make a significant capital investment in existing leasehold improvements. E2- c. c. Createand maintain) a significant number of new jobs, at higher-than-average ( g wages. d. Make a significant investment in the extension of public infrastructure that will benefit ED the Airport as a whole(i.e., roads, water, sewer, navigation aids, etc.). M co The actual term of a lease (in years) will be determined using information supplied by the 7.3 applicant correlating to each of the following inputs: r a. The value (in terms of dollars)the tenant is prepared to invest in new construction and/or w improvements to existing aviation or commercial facilities located on the property. b. Fifty percent(50%) of the actual purchase price of existing facilities located on the w property that the applicant intends to purchase from the previous tenant. c. The value (in terms of dollars) the tenant is prepared to invest in Airport infrastructure. o d. The total number of new employees the company intends to hire over the next five years. a e. The average wage that will be paid to the tenant's new workforce. Long-term Leases: Business Retention Considerations. The Authority recognizes the importance of retaining existing businesses that contribute substantially to the local economy. To this end, re the Authority may consider entering into a new lease with an existing tenant for a term up to the o maximum limit allowed by FDOT or the FAA(the more restrictive limit applying). re Title to Improvements a, z Title to all fixed improvements constructed or installed on leased or licensed premises shall remain with the Lessee or Licensee during the term, and any renewals thereto, of the Agreement. Upon termination of the Agreement, said improvements shall become the property of the Authority or, at the Authority's sole option, the Authority may require the Lessee to remove said improvements and restore the property to its original condition, all at no cost to the Airport or the County. -11- Airport Leasing Policy 16G1 Materials Terminal Building: The Authority will provide structural maintenance, heat and light, but will not provide janitorial service, revamping or other day-to-day services in any tenant's leased or licensed area unless the applicable agreement specifies that the Authority shall be compensated for such services. Airfield: The Authority will maintain all public use runways, taxiways and aprons. Ramps and aprons leased or otherwise provided to sub-tenants or any other occupants will be maintained by17. the sub-tenants or occupant of any description. CL Land and Building: Tenants may be required to provide all maintenance of land and utility services to leased or licensed land and/or buildings. The Authority shall be sole judge of the a quality of maintenance and, upon written notice, may require immediate improved maintenance. If such maintenance is not performed, the Authority may perform such maintenance and invoice the costs of the maintenance to the Lessee, Licensee or occupant. Non-payment of said invoice will be grounds to terminate the agreement that allows the occupant to occupy the property or a conduct the activities. a Assignment/Subletting/Sale of Stock/Sale of Facilities Constructed M The operation of any tenant on the airport shall be for the public interest and furtherance of co airport activity. Tenants are entrusted with the duty and obligation of providing the public with °' the highest level of services and facilities, and it is therefore, necessary that the tenant's activities r- and/or and/or operations be subject to continuing scrutiny by the Authority, and that the tenant always N operate in a businesslike fashion, efficiently and always with courtesy to the public and to the °w staff of the Authority. For these reasons the following shall be always be required of tenants: 0 The Authority shall retain total control and exercise sole discretion over the assignment or any method of changing or delivering to others any of the functions to be performed by the tenant, and any such assignment shall have prior written approval by the Authority. a tD The tenant shall not have any right to sell, sublease, assign or transfer a lease without written approval of the Authority. The Authority may require the approval in writing of the managing officers and the chief executive officer of the tenant. The Authority may require that the original owners of the corporation collectively own no less than fifty-one percent (51%) or more o financial interest in the assets of the tenant's corporation. The Authority may elect to retain the right to review and approve the manager who runs the day- to-day operations of the facilities under the lease. In the event the Authority is dissatisfied with said manager's performance, the Authority shall notify said tenant of the reasons for such dissatisfaction, and the tenant shall remedy all such items of dissatisfaction identified by the Authority including, but not limited to, replacement of said manager with a new manager acceptable to and approved by the Authority. Failure to correct those problems shall be deemed to be a serious breach of the lease and may be reason to terminate the lease. Tenant may sublease a part of the leased area to others only after first receiving written approval from the Authority. -12- Airport Leasing Policy 16G1 The Authority shall collect reasonable fees from tenants who lease land, hangars, buildings and/or other airport facilities constructed on airport-leased land. Public Service Goals The Federal Aviation Administration (FAA) contends that it is the prerogative of the airport owner to impose "Minimum Standards" to establish the threshold entry criteria for those wishing to engage in providing services to the general public on the airport. Those Minimum Standards adopted by the Authority for a specific airport will automatically be incorporated into each lease in order to ensure the level of public service is of a high quality, consistent with the goals of the Authority. Remedy clauses will be included in all lease agreements for inadequate performance, the quality of which will be determined solely by the Authority. U a The Lessee or Licensee and all representatives must always deal in the utmost good faith with all members of the staff of the Airport Authority, including its Division Director or Designee. Failure to always deal in the utmost good faith shall be grounds to terminate the lease agreement. Encumbrances The Authority may permit a tenant to subordinate leasehold-owned improvements (NOT M LAND) for financing purposes, with a mortgage approved by the Authority. If such an arrangement is permitted the mortgagee may be granted the right to cure any default including the assumption of the lease. This encumbrance provision will assist private investment in financing capital improvements, protect the mortgagee's interest, and does not endanger the interest of the Authority. NOTICE: Obligations to pay rent and charges to the Authority shall not be subordinated. 0 w Indemnification and Insurance >- J To the maximum extent permitted by Florida law, the tenant shall indemnify and hold harmless 0 Collier County Airport Authority, Collier County, its officers and employees and contacts from any and all liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of the Lessee or anyone employed or utilized by the Lessee in the performance of this Agreement. This indemnification obligation shall not be construed to o negate, abridge or reduce any other rights or remedies which otherwise may be available to an ce indemnified party or person described in this paragraph. This does not pertain to any incident a arising from the sole negligence of the Authority. E The Tenant shall provide all insurance deemed appropriate by the Authority, as determined by the Collier County Risk Management Division. Taxes Federal, state or local taxes not paid by Lessee or Licensee may be deemed sufficient cause to cancel or terminate the lease. -13- Airport Leasing Policy 16G1 Rules and Regulations Airport rules and regulations shall be a part of each lease. Such regulations may be amended from time-to-time by the Authority including such reasonable and uniform landing fees, rates or charges, as may from time to time be levied for airfield operational privileges and/or services provided at the Airport. Lessee shall also comply with any and all applicable governmental statutes, rules, orders and regulations. A violation of any Airport rule or regulation may be deemed sufficient cause for lease cancellation or termination by the Airport Authority. Appraisals 0. Appraisals may be used for determining the Fair Market Value (FMV) of the highest and best use of land and/or facilities the Airport leases. Appraisals shall be conducted by State Certified a. General Appraisers. The Authority shall make the selection of the firm to conduct the work but may endeavor to seek reimbursement from the Lessee or Licensee of the appraised property. Once an appraisal is conducted for land and/or facilities, the Authority may apply the appraisal on other similar land and/or facilities for up to five (5) years. If five years have lapsed since an appraisal has been conducted, a new appraisal for that category may be conducted if it is °' determined that the prior appraisal is out of date. In lieu of appraisals the Authority may, at its option, apply airport industry standards for determining the FMV of granting privileges and leasing land and/or facilities for aviation related or airport support agreements. Variance ti Prospective tenants who cannot meet the criteria identified in this Leasing Policy may make application for variance through the Authority's Division Director. Upon reviewing justification for such application, the Authority Board may grant a variance by affirmative majority vote F- during one voting session. Variances are not favored and there must exist compelling reasons for w the granting of any variance. The basis for the variance must always be beyond the control of the U applicant for the variance. Economic hardship shall never be a valid basis upon which to grant o any variance. a Performance Bonds a Each Lessee or Licensee who enters into an agreement may be required to provide the Authority with a surety bond equal to one year's rental. In lieu of a surety bond, a tenant may be permitted o to deposit with the Authority an amount equal to one year's rental. Such money shall be a._ deposited in an interest-bearing trust account. The requirement of a bond permits the Authority to recover damages in the event the tenant is in default. The bond or deposit serves in lieu of a lien by the Authority on the tenant's leasehold interest and is not objectionable from the standpoint of mortgage financing. In addition to rental deposits, construction performance bonds may be required. Relocation of Improvements To protect the long-term interest of the Airport and its Lessees and Licensees, the Authority retains the right to relocate or replace a tenant's improvements at another location in the event property is required for developing or expansion purposes. -14- Airport Leasing Policy 1 6 G 1 Zoning All leases shall remain consistent with the Airport Master Plan, Airport Development Standards, and the Airport Layout Plan (ALP), as well as the Collier County Comprehensive Land Use Plan. Gross Receipts Language Gross receipts as used herein shall be construed to mean the aggregate dollar amount of all sales co made and services performed (whether for cash or credit, or otherwise) of every kind and nature, a together with the aggregate dollar amount of all exchange goods, wares, merchandise and services for all property air services, valued at the retail market price thereof, as if the same had 0 been sold for cash, or for the fair and reasonable value thereof, whichever is the greater, a excluding only: 1. Refunds and discounts to customers, which have been included in gross sales. 2. The amount of any sales, use and excise taxes levied upon retail sales where such tax has been charged to the customer. Q Dominant Agreements M Any Lease, License or Operating Agreement with the Authority is subject to all existing agreements between the Authority and the Federal Aviation Administration (FAA), the Authority and the State of Florida, and the Authority and Collier County. Leases, Licenses and Operating Agreements are subject to FAA approval, which approval may be withdrawn. Accordingly, the Authority reserves the right to immediately terminate any lease that the FAA w has found to interfere with the safe operation and maintenance of the airport, or otherwise conflict with regulations governing public-use airports. Furthermore, and during the time of war ww or national emergency, the Authority shall have the right to lease the landing area or any part thereof to the United States Government for military or naval or similar use, and, if such lease is executed, the provisions of this Lease insofar as they are inconsistent with the provisions of the n. lease to the Government, shall be suspended. rn Other Lease Provisions This Leasing Policy does not include all of the provisions of Airport leases. A copy of the Standard Form Long Term Ground Lease Agreement is attached hereto as Exhibit I. Other a._ provisions including, but not limited to,the following may be included in airport agreements: Use and Privileges Obligations of Lessee Obligations of Lessor Leased Area Maintenance Termination Concessions Excluded Vending Machines Trade Fixtures Government Inclusion Notices No liens Hazardous Substances Waivers Right to Develop Airport Headings Construction and Saving Improvements Quiet Enjoyment Arbitration Means of access to the premises Nondiscrimination -15- Airport Leasing Policy 16G1 v a rn d -J t 0 O. I- co O C G1 V O N C3 w H w >- V J 0 a c7 z w -J F- 0 a a C E s U 4 -16- Airport Leasing Policy 16G1 SECTION IV COLLIER COUNTY AIRPORT AUTHORITY HANGAR WAITING LIST POLICY FOR GENERAL AIRCRAFT HANGAR UNITS 1. Waiting List Process: When hangar space is not immediately available for assignment, a wait list shall be established, prioritized by the date of receipt of the application by the Airport. The term"aircraft storage space", as used throughout this policy shall include: y A. General aircraft t-hangar units B. Bulk storage or large hangar units C. Storage units a) Applicants for aircraft storage space shall contact the Collier County Airport Authority (CCAA) to obtain the then current Hangar Reservation Form (Exhibit "A") (as may be amended from time-to-time). Separate lists for T-hangars and bulk/large hangar storage will be maintained in order to property record those who wish to lease a hangar or hangar space. Applicants must complete the then current form, return it to the Authority with a non- refundable reservation fee per hangart, as stated on the most current reservation form. The Operations Department will place the applicant on a waiting list in the order the reservation forms are received. Applicants who do not then own an aircraft but plan to purchase or lease one shall note this fact on the form. Applicants must be able to occupy an aircraft storage space with the specified, or similar, airworthy aircraft within thirty (30) days of entering into a T-hangar License Agreement. N 2. Notification of Available Hangar Space: tw- 0 When aircraft storage space becomes available (or when it become apparent that such space will soon become available), such space will be offered to the applicants on the hangar o waiting list on a "first come, first serve" basis. Ranking is determined by date of actual, a. physical receipt of a completed Hangar Reservation Form. It is the responsibility of the potential tenant to keep the Authority informed of any changes to the point of contact such a as, address, phone number, etc. w Airport staff will attempt to contact the applicant up to three (3) times by email or phone. If o there is no response to the emails or phone calls, the next person on the wait list will be a. contacted and offered the hangar. The unreachable potential tenant will be sent a certified letter to which he/she must respond within two weeks from the date of receipt to remain on the list in his/her relative position. If there is no response within the allotted time,he/she will be removed from the list and the deposit will be forfeited. Once a potential tenant has been offered a hangar,he/she has forty-eight(48)hours to accept or decline the offer. If the potential tenant accepts the space, an agreement will be sent by email or standard mail. If the potential tenant fails to submit a signed agreement and/or cannot fulfill the requirements set forth in the below Paragraph 4: "License," he/she shall forfeit the deposit and will be removed from the waiting list. The next person on the wait list will be offered the hangar. Those who decline hangar space for the first time will be placed on the bottom of the list, unless removal is requested. Those who decline hangar space for the second time will be removed from the list and will forfeit any deposit, and a follow-up -17- Airport Leasing Policy 1 6 G 1 letter verifying deletion from the list will be sent. If the hangar space being offered does not meet the space requirements for the potential tenant's aircraft, the potential tenant shall remain on the list in his/her original relative position. 3. Aircraft Storage Space definitions: A. General Aircraft T-Hangars: These hangars have door openings width of forty-six (46) feet or less. Ranking is based on applicant's position on the waiting list and can accommodate either twin or single engine aircraft. B. Large/Bulk Storage Hangars: These hangars have door openings widths of forty-six (46) Q feet or more. Ranking is based on applicant's position on the waiting list and can accommodate either single, twin, turboprop, or jet engine aircraft. `' C. Storage Units: These units are at the end of T-hangars and are for storing aircraft and/or a° related equipment. Ranking is based on applicant's position on the waiting list. c ca 4. License: Licensee shall provide proof of the following within 30 days of entering into an agreement: A. All aircraft stored in a CCAA hangar must be airworthy. B. All hangars must be occupied by approved aircraft in accordance with this policy. C. Rent shall be established by the Authority, and may be adjusted annually. M D. First month's rent must be paid in advance. E. Sub-licensing is authorized subject to the Authority's approval of a sub-license agreement and is limited to a maximum of(6) months in any one (1) year period. F. The storage of anything other than aircraft, equipment appurtenant to aircraft, vehicles of owners or passenger during flight, is not permitted without the express written consent of the Authority. G. Acceptable proof of aircraft ownership is required. Ownership is defined as owning a ww minimum of 25% interest in an aircraft or having a fully executed lease for an aircraft. 5. Emergency Situations: In the event of an emergency, (e.g. hurricane or aircraft accident) 0 any vacant hangar is subject to aircraft temporary occupancy at the discretion of Division z Director or Designee, provided such occupancy is to protect the aircraft from potential d exposure to loss or damage because of the emergency. 0 a a E c U W d -18- Airport Leasing Policy 16G1 EXHIBIT "A" COLLIER COUNTY AIRPORT AUTHORITY HANGAR RESERVATION FORM Name: Date: Local Address: c. Local Phone: Other Address: a. am Email Address: d J Other Phone: _ o Aircraft Type: Q 0 Aircraft N-Number: co," m * Aircraft Classification: Cabin Class: Twin: N ❑ w General: Storage: (*See policy for classification) a. CD z FOR COLLIER COUNTY AIRPORT AUTHORITY USE ONLY a 1. Date received cc 2. Fee collected Date a. 3. Waiting list position# n! .7;t- 4. 4. Aircraft Classification: 5. Proof of Ownership: Notes: -19-