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3-11-21 Page 1 of 5 <br /> <br /> <br /> <br />BOWERS FIELD AIRPORT ADVISORY COMMITTEE <br /> <br /> <br />TO: Kittitas County Commissioners <br /> <br />FROM: Airport Advisory Committee <br /> <br />DATE: March 10, 2021 <br /> <br />SUBJECT: Airport Leasing Policy Recommendations <br /> <br />General Lease Policy Statements <br /> <br />+ The need for a new lease structure for the airport is immediate. The lack of up-to-date <br />lease documents is impeding development needed to increase airport revenues and utilization. <br /> <br />+ While general lease policies and requirements should be consistently and uniformly <br />applied, it is reasonably anticipated that all but the most basic situations—apron parking and T- <br />hangars, for example—will require some level of negotiation and document modification, <br />particularly when valuable and/or specialized improvements, longer terms, unique needs and <br />uses, and tenant financing are involved. Accordingly, lease documentation should be developed <br />with reasonably consistent terms and adaptable to varied situations. <br /> <br />+ All existing leases should continue to be honored according to their terms.1 However, <br />existing tenants should be given the option to convert and efforts should be made to encourage <br />their conversion to the updated form of lease and current rent schedule through the use of <br />incentives such as extended terms, options to renew, and stepped rent increases. <br /> <br />+ No distinction or special accommodation should be made because a prospective tenant is <br />a public, private or non-profit entity. <br /> <br />+ Tenants holding leases with 50 year terms should have the first right to release the <br />property and improvements at the end of the lease term if the county elects to put them up for <br />lease. <br /> <br />+ A tenant should have some method of recovering the residual value of tenant <br />improvements to the property at the end of the lease term – a right to sell to a new user; appraisal <br />and purchase by the county; right to negotiate for a new lease on then existing rents and terms; or <br />similar. <br /> <br />+ Tenants should be able to sell improvements and assign the lease during the term so long <br />as the assignee meets county requirements. <br /> <br /> <br />1 To the extent of any presently existing legal deficiencies, such as lack of signatures or acknowledgements, they <br />should be corrected.