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3-11-21 Page 2 of 5 <br /> <br /> <br />+ Rents should be based on a fixed rent schedule with preestablished rent increases every <br />five years, rather than being adjusted based on inflation factors or periodic market or adjustment <br />to market studies. <br /> <br />+ Tenant improvements should be subject to an airport design and construction schedule <br />review prior to submitting for a building permit. <br /> <br />+ A party wanting to construct new improvements would negotiate and sign a lease and <br />proceed with the design/engineering/approval process. If that process is concluded to mutual <br />satisfaction, the building permit would issue and the lease commences. If not, the lease <br />terminates. <br /> <br />Recommended Lease Terms and Conditions <br /> <br />1. Term of Leases <br />1.1 New ground leases of unimproved land for the construction of new improvements <br />should be for up to 50 years with a 30-year prime term with up to 2, 10-year <br />options to extend being preferred. Options may be executed in either 5 or 10-year <br />segments as agreed upon between Lessor and Lessee not to exceed 20 years in <br />total. <br />1.2 Existing ground leases with existing improvements and for county owned <br />buildings, either of which are converted to the new lease form should be for 10 to <br />50 years depending upon improvement condition. For example, improvements <br />constructed within the last five years should have a 50-year term but one 23 years <br />old in good condition possibly should get a 10-year term with one or more 5-year <br />option to extend. <br />1.3 County T-hangars should be for 1 to 5 years with one option to extend for up to 5 <br />years <br />1.4 Ramp space should be month-to month <br /> <br />2. Rental Rates <br />2.1 $0.14 per square foot per year for all ground leases <br />2.2 North T-hangars (presently $125/mo) $175/mo for first two years, increasing to <br />$225/mo for last three years <br />2.3 South T-hangars (presently $125/mo) $190/mo for first two years, increasing to <br />$250/mo for last three years <br /> <br />3. Rent Escalation – Fixed increases of ground rent should be 7% per five years, <br />rounded up to the next half cent. <br /> Example: $0.14 x 7% = $0.1498, or $0.15 <br /> <br />4. Options to Extend Lease Term – [Note: options to extend run in-favor of the tenant; do <br />not provide the county with an opportunity to deny its exercise; and must specify from the outset <br />of the lease the rent to be paid during option period together with all other changes, if any, to the <br />prime lease terms.]