ELKO REGIONAL AIRPORT ELKO,NEVADA 89801 (775) 777

ELKO REGIONAL AIRPORT
LAP
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ELKO,NEVADA 89801
(775) 777-7191/FAX (775) 777-7193
ELKO REGIONAL AIRPORT ADVISORY BOARD AGENDA
REGULAR MEETING
12:00 P.M., P.S.T., FRIDAY, SEPTEMBER 18, 2015
Airport Restaurant, 975 Terminal Way, Elko, NV 89801
CALL TO ORDER
The agenda for this meeting of the Elko Regional Airport Advisory Board has been
properly posted for this date and time in accordance with NRS requirements.
ROLL CALL
APPROVAL OF MINUTES:
May 1, 2015
COMMENTS BY THE GENERAL PUBLIC
Pursuant to N.R.S. 241, this time is devoted to comments by the public, if any, and
discussion of those comments. No action may be taken upon a matter raised under this item
on the agenda until the matter itself has been specifically included on a successive agenda
and identified as an item for possible action. ACTION WILL NOT BE TAKEN
NEW BUSINESS
Update on FAA AlP Project 3-32-005-46: Runway 5/23 Rehabilitation Phase 3 Schedule.
FOR POSSIBLE ACTION.
Mark Gibbs, Airport Director will be giving a briefing on the FAA AlP Project 3-32-00546 Runway 5/23 Rehabilitation Phase 3.
II.
UNFINISHED BUSINESS
Update and possible consideration to adopt Aviation Leasing and Hangar Policy
including any changes before adopting a recommendation for consideration by Elko City
Council. FOR POSSIBLE ACTION.
During the Airport Advisory Board meeting the board elected to have a
public meeting
for anyone wishing to discuss the Airport Lease Rates and Charges Policy. The meeting
was properly advertised in the legal section of the Elko Daily Free Press and on April
23, 2015 at 3:00 p.m. there was a public meeting held. At this time Staff would like AAB
approval to present the Airport Lease Rates and Charges Policy to City Council for
possible consideration and adoption.
III.
REPORTS. No action may be taken upon a matter raised under this item on the agenda.
ACTION WILL NOT BE TAKEN
Staff Reports
—
Airport Director
A. Update on 2016 FAA Grant Application for Elko Regional Airport
a. Airport Master Plan
b. Airport Snow Broom Equipment
B. Brief on Airport Maintenance Projects
a. Crack sealing of all asphalt surfaces
b. Millings placement for weed/dust control
c. Staining Airport Glue Laminates
d. Micro paving Terminal Way
e. Rust control ATCT
f. Painting Taxilanes, GA Ramp, and RWY 12/30 Hold Short Markings
g. Deploy IT Fiber to connect airport to main city fiber network
h. Stripping and waxing all terminal floors
i. Polymer application to resurface remaining terminal curb frontage
j. Replace the HVAC control software
C. Airport Grants
a. $15K Elko Recreation Board 1-80 Fly Elko advertising
b. $5k Nevada Commission on Tourism Digital Marketing of Elko in Salt
Lake City & Denver Markets
D. Mountain West Aviation has acquired El Aero Services, Inc.
E. New Airport Property Management Database and workflow system being
integrated into City departments.
Board Announcements
COMMENTS BY THE GENERAL PUBLIC
Pursuant to N.R.S. 241, this time is devoted to comments by the public, if any, and
discussion of those comments. No action may be taken upon a matter raised under this item
on the agenda until the matter itself has been specifically included on a successive agenda
and identified as an item for possible action. ACTION WILL NOT BE TAKEN
IV.
ADJOURNMENT
NOTE: The Chairman, Vice-Chairman, or other Presiding Officer resen’es the right to change
the order of the agenda, and if the agenda has not been conipleted, to recess the meeting and
continue on another specified date/time.
Respectfully submitted,
Mark Gibbs
Airport Director
Elko Regional Airport
Mr. Gibbs, Manager
Elko Regional Airport
Dear Mark,
I along with many other tenants attended the “Special Tenant Meeting” on April 24, 2015 at Elko City
Hall. Unfortunately I left the meeting with more questions than answers. At this time I again request
that you provide any information and/or correspondence relied on in making your presentation.
Obviously, I understand that much of this information may be available and accessed through the
internet, you need not go to the trouble of assembling that type of information. I can locate those types
of documents myself. The following is in no particular order and does not reflect the significance or
general importance of any one item over another. Also, FAA land lease regulations differ depending on
type of use, aeronautical and non-aeronautical. My primary concern is regarding the land leases for tee
hangars, an “aeronautical use. Based upon your claim that the FAA has reviewed the existing leases
(which there are apparently 4 variants) and the FAA’s position is that none of the current leases are in
compliance with current Federal regulations. I am requesting copies of all written documentation
provided in support of the FAA position that the City is out of compliance with currently applicable
regulations. The requested information may include, but is not limited to the following:
1) Current grant Assurances entered into by the City in order to secure grant funding for the
airport.
2) Specific correspondence between the City and FAA regarding the City leasing airport property
for private hangars, again including letters, emails, memo of telephone calls and/or meetings,
etc.
3) Copies of any type of correspondence between yourself and the city Manager and br City
Attorney discussing the alleged position of the FAA that the City is currently out of compliance
or will be out of compliance by a certain future date. I am especially interested I knowing
whether or not the City Attorney is in agreement with the FAA’s position?
4) In the event the City has prepared a “DRAFT” lease(s) that comply with what the City perceives
as the FAA’s land lease requirements I would request a copy of this draft(s).
As Mr. Creek pointed out “Guide Lines”, examples, etc. are not law and/or regulations and need not be
considered when review the legality of the existing leases. You made repeated Reference to ACRP,
Report 47 “Guidebook for Developing and Leasing Airport Property”, this is only a suggestion.
As I recall the property where the existing hangars are located was City property acquired prior to the
formation of the Federal Aviation Administration (1958) and it’s predecessor the Civil Aeronautics Board
(1938). Does this property have to comply with the FAA current regulations concerning airport leases?
If so do you have a basis for this opinion, other than simply this is my personal interpretation.
I know Federal agencies, especially the FAA, are reluctant to put things in writing and working
with them
to achieve a perceived goal or objective can best be described and “shooting at a moving target”.
This is
compound since at the same time the City is holding its hand out asking for the FAA for money. In
my
opinion not a good position to be in. Let me clarify one statement your made regarding the “FAA’s
generous gift to the City of in excess of $40,000,000 over the past 20 years for airport improvements”.
You seem to imply that this money was the FAA’s own funds, which may or may not be the case. In
reality all of this money was confiscated from the aircraft owner in the form of a tax on fuel, which
the
FAA took 25% of the top for administration and return the balance to local entity in order to buy their
allegiance and support. A sad commentary on our government on both the local and federal levels,
especially when you consider without the FAA’s funding many unnecessary projects the City could
have
gotten by just fine. The City needs to prioritize projects and only undertake what is essential and avoid
wasting the public money on unnecessary improvements, if “improvement” is the correct term.
In summary a lot of what you presented in last week’s meeting was not based upon substantiated
fact,
but instead a result of your misconception of what the FAA is attempting to accomplish. In order to
better serve the interest of the public, along with the interest of those individuals that have made
a
significant investment in acquiring a land lease at the airport to hangar their aircraft. I would
propose
the City Council consider appointing an ad hoc committee to review this matter at both the local
and
federal level to develop a proposed lease for City consideration. The committee’s finding and
recommendations could then be presented to the council for consideration. Looking forward to your
timely repy, as you have total ignored previous requests for information regarding this and other
matters.
Mike Lattin
Carol Genseal
From:
Sent:
To:
Cc:
Subject:
Mark Gibbs
Tuesday, June 2,20153:31 PM
[email protected]
Rick Hofheins
RE: Feedback to Information Related to New Hangar Policy at Elko Regional Airport
Mr. Garcia:
Thank you for your detailed analysis and review. Your comments are certainly welcome. They certainly will be included
into the next revision of the Draft Hangar Policy for Elko Regional Airport. I appreciated feedback from someone who
has witnessed a few airports go through a similar situation. Thank you again for your time and expertise on this matter.
Sincerely,
Mark Gibbs, A.AE
Airport Director
Elko Regional Airport
975 Terminal Way
Elko, Nevada, 89801
775177717192 Office
775138812490 Cellular
775177717193 Fax
From: [email protected] [mailto:[email protected]]
Sent: Tuesday, June 02, 2015 3:05 PM
To: Mark Gibbs
Cc: Rick Hofheins; [email protected]
Subject: Feedback to Information Related to New Hangar Policy at Elko Regional Airport
Mark Gibbs
I reviewed the Hangar Lease Rates & Charges Policy and the Ground Lease Termination Provision Analysis.
First, I have a few questions regarding the Lease Rates and Charges Policy:
Page 7 at the bottom states, “If the lease Agreement is not signed and returned to the City within 45 days of being
issued, the earnest money will be returned to the Applicant...”
Question: Might you wish to consider charging an administrative application fee for recover part of the cost of
processing a lease application?
Page 13 near the top states, “The operator shall not be required to pay the Airport Enterprise Fund of the City of Elko
any portion of revenue or profit related to subleasing activities.”
Question: Might you wish to consider collecting a percentage of the sublease rental income? Since the Airport is giving
the tenant the ability to act as a “property manager” and earn income from subtenants, perhaps it may be justified for
the airport to collect a percentage of the sublease income, at least for some subtenant situations.
1
Page 14 near the bottom states, “The initial term of all Agreements shall be for no less than twenty years The initial
term of all Agreements shall be extended twice for five years if the land is not needed for airport development Any
renewal options related to a lease shall be subject to the same conditions set forth in the original base term.”
Question: Do you really want to state these terms officially in writing? It is likely that they will become the “de facto”
terms demanded by all tenants, whether they deserve the terms or not.
...
...
Page 17 in the middle states, “ALL PARTIES at the airport shall be subject to the same rates, fees, and other charges...”
Question: Do you really want to make the statement “all parties”? It is likely everyone will demand that you give them
same rate you have given to others regardless of the circumstances. You may wish to consider avoiding the use of the
work “all” and find some other way to say it.
Second, some feedback:
Your endeavor to update the airport leasing policy and rates and charges schedule is commendable. The Grant
Assurance 24 encourages airport sponsors to make the airport as self-sustaining as possible. In practical terms, this
means that an airport is allowed to recover its costs based on the specific airport circumstances, market conditions, the
volume of traffic, and the economy of collection. If an airport can accumulate reserves, it will have revenue to pay
for major repairs or even certain necessary improvement that AlP will not cover.
The reversion of improvements and the removal of improvements at the end of lease agreement are strategies to deal
with a troublesome question, namely, what does the landlord do when the lease expires? On one hand, the lessee
wants tenancy rights for an indefinite period. On the other, the landlord may wish to maximize income, promote airport
development, replace aging facilities, or negotiate a new lease with new provisions and rates with the tenant whose
lease expired. Therefore, your desire to establish reversion provisions is not unreasonable and it is not an uncommon
leasing policy.
The Assurances exhort the airport sponsor to use prudent leasing standards and practices and to make the airport as
self-sustaining as possible. However, the Assurances do not prescribe the specific policies or rates that airport sponsors
should adopt. As a practical matter, the Assurances, and in particular Assurance 24, are not onerous. They merely
present criteria for creating good business management policies and viable financial principles.
In closing, the FAA cannot tell you what your specific policies should be, but we can say that your efforts are legitimate
and in accord with the intent of the Assurances. Good luck with your endeavor.
Tony Garcia
FAA Airports Division
Western-Pacific Region
Los Angeles CA
\(*)/
o/ \o
From: Mark Gibbs [mailto: mciibbsci .elko.nv. us]
Sent: Wednesday, May 27, 2015 2:41 PM
To: Garcia, Anthony (FAA)
2
Cc: Rick Hofheins
Subject: Information Related to New Hangar Policy at Elko Regional Airport
Anthony:
Attached is the Airport Beacon Report on Airport Hangar leases published by Bobbi Thompson, who is the President of
the Nevada Airport Managers Association. Section Ill (page 16) reports on findings from the FAA western areas. If the
Nevada Airports District Office or you can write similar language to your other FAA counterparts that will assist me in my
efforts to advance a new hangar lease policy for Elko Regional Airport. I believe the statements by other FAA branch
offices are suitable for the efforts I am undertaking and will not improperly place responsibility of setting hangar policy
on the FAA.
Thank you.
Regards,
Mark Gibbs, A.A.E
Airport Director
Elko Regional Airport
975 Terminal Way
Elko, Nevada, 89801
775177717192 Office
775138812490 Cellular
775177717193 Fax
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Elko Regional Aeronautical Hangar Lease Rates & Charges Policy
2015
OBSERVATIONS
Lease extension: If the land is not needed by the airport for current or future development many airports with
reversionary leases offer lease extensions for capital improvements to the hangars. The duration of the
extension is based upon the cost of the capital improvement. At the surveyed airports, a fixed dollar amount
was used to determine the length of the extension. The amount needed to qualify for the extension was adjusted
periodically. The size or value of the hangar was not taken into account. At one airport the age of the hanger
was a factor. Capital improvements on older hangers could only use a fraction of the investment to qualify for
an extension.
It is recommended that extensions be offered for improvements worth 1/25 of the value of a new hangar of
similar size. For example a lessee has 15 years left on the lease and installs a new hangar roof. The new
hangar roof costs $25,000. A new hangar of similar size currently sells at the airport for $200,000. The
number of years the lease would be extended would be 1 year for every $8,000 of verifiable and airport
approved improvements ($200,000 divided by 25). In this example the hangar owner would qualify for 3.125
additional years on their lease due to the reinvestment made by the tenant hangar owner.
Future Rates: The demand for new hangars will eventually exceed the existing buildable hangar space and new
hangars will need to be constructed. It is recommended that when the airport reaches maximum capacity for
new hangars, appraisal values be used to establish lease rates. The appraisal process should be undertaken by
the airport to set a fair market rate for each type of hangar on the airport.
Hangar Ownership: The number of hangars owned by Elko Regional Airport is much less typical airports of
similar size and characteristics. This hinders the amount of control the airport has on the hangars and
ultimately land use. As demand increases for hangar space and development, it will become critical for the
airport to have more control over each hangar. As such, it is recommended that the practice of using
reversionary clauses in the leases be continued.
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AIRPORT
TABLE OF CONTENTS
1.0 Introduction.....
4
1.1 Statement of Policy
4
1.2 Definitions
4
1.3 Existing Lease Agreements
6
1.4 Rights Reserved
6
2.0 Application Requirenients
..
2.1 Application
6
2.2 Approval Process
6
2.3 Competitive Proposal Process
7
2.4 Grounds for Denial
10
2.5 Demonstration of Need
11
2.6 Public Disclosure
11
3.0 Agreements
..
11
3.1 General
12
3.2 Use of Leased Premises
12
3.2.1 Aeronautical Use (Commercial)
12
3.2.2 Aeronautical Use (Non Commercial)
12
3.2.3 Non-Aeronautical Use
12
3.2.4 Restrictions
12
3.3 Sub-Leasing
12
3.3.1 Sub-leasing Privileges Permitted in the Commercial Lease Agreement....1 3
3.3.2 Sub-leasing Privileges Not Permitted in the Commercial Lease
13
3.3.3 Sub-Lessee Obligations
13
3.3.4 Sub-Lessee Stipulations
13
3.4 Transfer of Interest
3.5 Term
14
3.4.1 Assignment
14
3.4.2 Change in Majority Ownership
14
14
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3.5.1 Lease Extensions
14
3.5.2 Investment Term Adlustment
15
3.6 Hangar Improvements
15
3.7 Responsibilities
16
3.7.1 City of Elko & Elko Regional Airport Responsibilities
16
3.7.2 Lessee Responsibilities
16
3.8 Condemnation
16
3.9 Relocation
16
4.0 Rates and Charges
17
4.1 General
17
4.2 Mechanisms to Set Rates
17
4.3 Competitive Proposal Process
17
4.4 Variation in Rates
17
4.5 Adjustment of Rents
17
4.6 Payments of Rents, Fees or Other Charges
18
4.7 Records
18
4.8 Exclusive Rights
18
5.0 Establishment of Fair Market Value
.18
5.1 Appraiser Qualifications
18
5.2 Dispute Resolution
19
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1.0 INTRODUCTION
1.1 Statement of Policy
This Leasing Policy (Policy) for Elko Regional Airport is intended to provide guidance and parameters for
leasing
Airport property and be a guide for City staff on Airport leasing issues. Leasing issues may include establishing
and adjusting rents, fees, and other charges associated with occupancy and use. In addition, this Policy is
intended to provide potential and current tenants and businesses an understanding of the policies and processes
used for determining Airport Leases after adoption by Elko City Council.
Entities wishing to occupy or use Airport land and/or improvements at the Airport shall be given a reasonable
opportunity to compete, without unjust discrimination, for the occupancy or use of available land or
improvements subject to the stipulations specified within this Policy.
No entity shall occupy or use Airport land and/or improvements at the Airport, or conduct a Commercial
Aeronautical Activity, unless the entity has been authorized by the Elko City Council for such occupancy, use, or
activity.
1.2 Definitions in this Policy
The following words, terms and phrases, when used in this Policy, shall have the meanings ascribed to them
in
this section, except when the context clearly indicates a different meaning:
Aeronautical
Anything which involves, makes possible, or is required for the flight of aircraft, or
the storage or presence of aircraft on the airport, or which contributes to, or is
required for the safety of aircraft in flight.
Aeronautical Activity
Any activity that involves, makes possible, or is required for the operation of aircraft
or that contributes to or is required for the safety of such operations. Activities within
this definition, commonly conducted on airports, include, but are not limited to, the
following: general and corporate aviation, air taxi and charter operations, pilot
training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial
advertising and surveying, aircraft sales and service, aircraft storage, sale of aviation
petroleum products, repair and maintenance of aircraft, sale of aircraft parts,
parachute or ultralight activities, and any other activities that, because of their direct
relationship to the operation of aircraft, can appropriately be regarded as
aeronautical activities.
Agreement
An arrangement between two or more parties.
Aircraft
A device that is used, or intended to be used, for flight in the air and subject to
regulation by the Federal Aviation Administration.
Airport
Elko Regional Airport and all of the property, buildings, facilities and improvements
within boundaries of the Airport as depicted in Exhibit A of the most recent Airport
Layout Plan.
Airport Layout Plan
The FAA and City-approved layout of the airport property, indicating current and
proposed usage for each identifiable segment, as may be amended from time to time.
Ejjçp
Airport Advisory Board
Page 5
The purpose of the Elko Regional Airport Advisory Board is to advance and promote
the interests of aviation while providing a citizen’s perspective of various issues at the
airport. The Airport Advisory Board makes recommendations to the Airport Director.
The Airport Director is responsible for making recommendations to the City Manager
and the City Council. The specific objectives of the Airport Advisory Board include: 1.)
reviewing and/or recommending proposed airport policies, operational procedures,
airport master plans, capital improvement plans, annual budget priorities; 2.)
providing input regarding airport safety and strategic planning activities; 3.)
assisting airport staff with public relations, marketing plans, and special event
coordination; and 4.) other duties as prescribed by Elko City Council.
City
Incorporated City of Elko, Nevada
Commercial Activity
The conduct of any aspect of a business, concession, operation, or agency in order to
provide goods and services to any person for compensation, consideration or hire. An
activity is considered a commercial activity regardless of whether the business is non
profit, charitable, or tax-exempt.
Commercial Tenant
A person, fixed base operator, firm, corporation or other entity, meeting the Airport’s
“Minimum Standards”, having been approved by the City to conduct commercial
aeronautical services or activities at the Airport for compensation or hire.
Exclusive Right
A right reserved exclusively by a particular corporation, group or individual.
Fair Market Value
The amount in the competitive market a well-informed and willing lessor, who desires
but is not required to lease, would accept and which an informed lessee, who desires
but is not required to lease, would pay for the use of airport property, after due
consideration of all the elements reasonably affecting value.
Independent Operator
A person or entity that conducts Aeronautical Activities, retaining total and free
control over the means or methods used in conducting activities on the Airport but is
based on land either adjacent to and/or located other than on the Airport, and
whereby such land is not part of the Airport. This type of operator is not authorized to
provide services at the Airport.
Lessee
Any person or entity with a lease to occupy space at the Airport.
Minimum Standards
Minimum Standards the qualifications or criteria, which have been established by
the Airport owner as the minimum requirements that shall be met by all businesses
offering commercial aeronautical activities and for the right to conduct those
activities.
-
Non-Reversionary Lease A lease wherein the ownership of improvements made by the tenant are retained by
the tenant at the end of the lease period.
Operator
Any individual, firm, partnership, corporation (including registered non-profit
corporations), company, association, loint-stock association, or governmental entity
which is engaged in the sale of products and/or services on the Airport.
Person
Any individual, firm, partnership, corporation (including registered non-profit
corporations), company, association, joint-stock association, or governmental entity.
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It includes a trustee, receiver, assignee, employee, agent, or similar representative of
any of them.
REE,ONAL AIRPORT
Reversionary Lease
A lease which contains a provision which states all structures and improvements made
by the tenant on the leased property shall pass title and ownership to the lessor at
the end of the lease period.
Rules & Regulations
The stipulations specified in this Policy and other airport guiding documents that
relate to the occupancy or use of the operations, land and/or improvements at the
Airport.
Sub-Lessee
Any person with a sublease to occupy space at the Airport.
Tenant
A person or entity occupying Airport leased land or property.
Through the Fence (TTF)
Through-the-fence operations are those activities permitted by an airport sponsor
through an agreement that gives access to the public landing area by independent
entities or operators offering an aeronautical activity or to owners of aircraft based on
land adjacent to, but not a part of, airport property. The obligation to make an
airport available for the use and benefit of the public does not impose any
requirement for the Airport Sponsor to permit ground access by aircraft from adjacent
property. TTF operations are not authorized at the Airport.
1.3 Existing Agreements
If there are any inconsistencies between the Elko Regional Airport Leasing Policy and existing property leases,
the existing lease shall prevail. New leases issued or extensions granted to existing leases should be treated
uniformly and follow the guidance outlined in this Policy. Any lease currently in effect may not renew its lease
(where applicable) until such a time as the lease term end date is less than one year away.
1.4 Rights Reserved
The Airport Advisory Board reserves the right to revise, adjust, or otherwise modify this Policy to reflect
changes in the legal, economic, and operational environment of the Airport’s or City’s operational requirements.
2.0 APPLICATION REQUIREMENTS
2.1 Application
Any person or entity desiring to occupy or use land and/or improvements at the Airport through an Agreement
with The City of Elko shall submit a written application to the Airport Director. The Applicant shall submit a
completed application to include all information requested in writing and shall submit any additional related
information to properly evaluate the application if requested by the Airport Director following guidelines in the
Hangar Development Guide.
A transfer fee shall be submitted with an application on a reassignment of a lease or a majority change of
ownership of a hangar. A transfer fee of $100.00, shall be paid to the Airport Enterprise Fund of the City of
Elko. The sale of a new hanger development on airport property is not subject to the transfer fee.
22 Approval Process
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A completed request for land use or improvement and all accompanying and requested information shall be
submitted to the Airport Director for review. If the Applicant is changing the use of a hangar or desires to
conduct a commercial venture the application will go before the Airport Advisory Board for review. The Airport
Advisory Board will determine if the Commercial operator meets the Airport’s Minimum Standards. After the
Airport Advisory Board approves the Commercial Tenant, the Board will submit the application to the Elko City
Council for approval.
The Airport Manager has the authority to approve non-commercial applications which involve the sale and/or
transfer of hangar ownership.
Incomplete applications that do not provide adequate information to make a knowledgeable assessment shall
be rejected.
Applications that do not comply with this Policy shall be rejected.
Applications that are inconsistent with the Master Plan, the Airport Layout Plan, other plans associated with the
Airport, and/or are deemed not in the best interest of the Airport shall be rejected.
If two qualified Applicants submit an application for the same land and/or improvement, the Airport Advisory
Board shall determine whether to negotiate with both entities or issue a Request for Proposal (RFP). The
competitive RFP process is described in this Policy under Section 2.3 and shall be followed.
Within 60 days of receiving the application, the Airport Director shall notify the Applicant of the status of the
application. If the application was approved, the Airport Director shall provide the terms and conditions for
occupancy or use of the land and/or improvements at the Airport. If the application was denied, the Airport
Advisory Board shall provide reasons for the denial.
Within 30 days of receiving notification of the application status, the application shall indicate if the terms and
conditions provided by the Airport Advisory Board are acceptable to the Applicant. Then the agreed upon terms
will be presented at the next Elko City Council meeting for adoption by the governing body.
If the Applicant finds the terms and conditions unacceptable, the Applicant shall present terms and conditions
acceptable to the Applicant to the Airport Advisory Board. If the Airport Advisory Board and the Applicant are
unable to reach an agreement by negotiation, the City shall not be obligated to lease airport land and/or
improvements to the Applicant. The applicant may petition the Elko City Council for redress of issues should
they feel that they were unfairly discriminated. The Elko City Council has the final authority to negotiate
contracts for Elko Regional Airport.
Once an agreement has been made between the City of Elko and the Applicant regarding the terms and
conditions of the Agreement and the agreement is accepted by Elko City Council, the Applicant shall pay an
earnest money deposit in the amount often percent (10%) of the total annual rents, fees, and other charges
proposed to the City and submit a letter of acceptance of the terms and conditions of the Agreement. The deposit
shall be submitted to the City within 30 days executing the agreement with the City Clerk.
The terms and conditions should address, but not be limited to, the identification of the land and/or
improvements to be leased or developed, the proposed investment, the length of the term, and the rents, fees,
and other charges that shall be paid.
Once the earnest money deposit and written letter of acceptance have been accepted by the City, the same land
and/or improvements may not be negotiated with any other party, nor can a Request for Proposal (RFP) be
issued.
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Upon receiving the letter of acceptance from the Applicant, the City shall prepare the
leasing documents and
send them to the Applicant for review. If the Lease Agreement is not signed and returne
d to the City within 45
days of being issued, the earnest money shall be returned to the Applicant minus a
$100 administrative
processing fee. The hangar lease application and written agreement after 45 days
shall be null and void.
2.3 Competitive Proposal Process
The Airport Director may require a public action for airport improvements and/or
land sought by more than one
entity who wishes to occupy or use available land or improvements. The public
auction process will follow the
requirements of Nevada Revised Statutes 268.062 if there is a) more than one interes
ted party that desires the
same improvement and/or airport land, b) the aeronautical land and/or improvement
is greater than 0.5 acres
of airport property, c) the improvement and/or land is deemed controversial by
Elko City Council, and d) nonaeronautical airport development.
NRS 268.062 Sale or lease of certain real property at auction: Resolution dedarin
g intention to sell or lease
property; requirements; notice; procedure; deposit to cover certain costs; effect
ofsale or lease in violation of
section.
1. Except as otherwise provided in this section and NRS 268.048 to 268.05
8, indusive, 268.063,
268.064, 278.479 to 278.4965, inclusive, and subsection 4 of NRS 496.080,
except us otherwise required by
federal law, except as otherwise required pursuant to a cooperative agreement
entered into pursuant to NRS
277.050or277.053 or an interlocal agreement in existence on October 1, 2004,
except if the governing body is
entering into a joint development agreement for realproperly owned by the city
to which the governing body is
a party, except for a lease of residential properly with a term of! year or less, except
for the sale or lease of
realproperly to a public utility, us defined in NRS 704.020, to be used for a public
purpose and except for the
sale or lease of realproperty larger than 1 acre which is approved by the voters
at a primary or general
election, the governing body shall, in open meeting by a majority vole of the
members and before ordering the
sale or lease at auction of any realproperty, adopt a resolution declaring its intenti
on to sell or lease the
properly at auction. The resolution must:
(a) Describe the property proposed to be sold or leased in such a manner as
to identify it;
(b) Specify the minimum price and the terms upon which the property will be
sold or leased1’ and
(ci Fix a lime, not less than 3 weeks thereafter, for a public meeting of the govern
ing body to be held at its
regular place of meeting, at whkh sealed bids will be received and considered.
2.
by:
Notice of the adoption of the resolution and of the time andplace of holdin
g the meeting must be given
(a) Posting copies of the resolution in three public places in the counly not less
than 15 days before the date
of the meeting; and
(b) Causing 10 be published at least once a week for 3 successive weeks before
the meeting, in a newspaper
qualified under chapter 238 of NRS that is published in the county in which the real
properly is located, a nolice
setting forth:
(1) A description of the real property proposed lo be sold or leased at auction in
such a manner as to
identify it;
(2) The minimum price of the real properly proposed to be sold or leased at auction
; and
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(3) The places at which the resolution described in subsection 1 has been posted pursuant to paragraph
(a), and any other places at which copies of that resolution maybe obtained.
RFCIOVAL AIRPORT
If no qualified newspaper is published within the county/n which the realproperty is located, the required
notice must be published/n some qualified newspaper printed in the State of Nevada and having a general
circulation within that county.
3. At the time andplace fixed in the resolution for the meeting of the governing body, all sealed bids
which have been received must, in public session, be opened, examined and dedared by the governing body. Of
the proposals submitted which conform to all terms and conditions specified in the resolution of intention to sell
or lease and which are made by responsible bidders, the bid which is the highest must be finally accepted,
unless a higher oral bid is accepted or the governing body rejects all bids.
4. Before accepting any written bid, the governing body shall call for oral bids. If, upon the call for oral
bidding, any responsible person offers to buy or lease the property upon the terms and conditions specified in
the resolution, for a price exceeding by at least 5 percent the highest written bid, then the highest oral bid
which is made by a responsible person must be finally accepted.
5. The final acceptance by the governing body may be made either at the same session or at any
adjourned session of the same meeting held within the 21 days next following.
6. The governing body may, either at the same session or at any adjourned session of the same meeting
held within the 21 days next following, if it deems the action to be for the best public interest, reject any and all
bids, either written or oral, and withdraw the property from sale or lease.
7. Any resolution of acceptance of any bid made by the governing body must authorize and direct the chair
of the governing body to execute a deed or lease and to deliver it upon performance and compliance by the
purchaser or lessor with all the terms or conditions of the contract which are to be performed concurrently
therewith.
8. The governing body may require any person requesting that realproperty be soldpursuant to the
provisions of this section to deposit a sufficient amount ofmoney to pay the costs to be incurred by the
governing body in acting upon the application, induding the costs ofpublication and the expenses of appraisal.
This deposit must be refunded whenever the person making the deposit is not the successful bidder. The costs of
acting upon the application, including the costs ofpublication and the expenses of appraisal, must be borne by
the successful bidder.
9.
If real property is sold or leased in violation of the provisions of this section:
(a) The sale or lease is void and
(b) Any change to an ordinance or law governing the zoning or use of the realproperty is void if the change
takes place within 5 years after the date of the void sale or lease.
(Added to NRSby2005, 1465; A 2005,2679,2680; 2007, 568, 2011,2835; 2011, 482)
If an RFP is issued, the Airport Director shall advertise the opportunity in local Nevada publications in
accordance with established practices and legal requirements. The advertisement shall also be posted on the
City of Elko Bid Advertisement webpage:
1.
2.
Provide a description of the land and/or improvements that are available for use and the products,
services, and/or facilities that are required, permitted, and/or desired.
Indicate if the proposals will be evaluated on qualifications.
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4.
5.
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Provide instructions for obtaining the RFP document.
Identify the date, time, and place for submitting sealed proposals.
State the Airport Director has the right to reject any and all proposals.
The Airport Director may also, but is not obligated to, mail the RFP directly to parties that have expressed
interest, may be interested, or that the Airport Director may wish to attract. The RFP documents shall (as
appropriate):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
1 5.
16.
1 7.
Provide a summary of the Airport, the market, and the opportunity (products, services, and/or facilities
required and/or desired);
Identify the location of the land and/or improvements;
Define the time frame for occupancy or use of the land and/or improvements;
Outline the submission and selection process, proposer’s responsibilities, and schedule for the process;
Provide instructions regarding the content and format of the proposal;
Provide all required forms, statements, and affidavits;
Provide a draft of the Agreement;
Indicate the evaluation and/or selection criteria that will be utilized by the Airport;
Indicate if proposals will be evaluated based upon the qualifications and experience of the proposer
and the proposed products, services, and/or facilities;
Indicate that the proposer’s financial plan including all proposed rents, fees, or other charges shall be
provided to the Airport under separate cover;
Identify the base rent for the land and/or improvements;
Identify the fees and charges for engaging in Aeronautical Activities at the Airport;
Identify the grounds for denial or disqualification and withdrawal;
Indicate the place, date, and time for submission of proposals;
Indicate the place, date, and time the pre-proposal conference will be held;
Require that a proposal bond or guarantee in the amount equal to ten percent (10%) of the total rents,
fees, or other charges proposed to be paid to the City in the first year of the proposed Agreement be
submitted with the proposal.
Require the prospective Proposer complete all proposal forms, statements, and affidavits.
The RFP document shall be available to potential Proposers at least three weeks prior to the date of the pre
proposal conference. The Airport Director will receive and open the proposals at the designated place, date, and
time. The contents of the proposal will be protected. Proposals received after the advertised deadline will not
be considered and will be returned unopened. The Airport Director will then review, evaluate, and rank the
proposals. The Airport Director may require interviews with prospective Parties. The Airport Director has the
right to reject and all proposals, to advertise for new proposals, and to modify the proposal process. The
Airport Director shall be under no obligation to make any award or to make an award to the proposer
specifying the highest compensation to the.
Upon completion of the review and evaluation of the proposals, the Airport Director shall select the proposal
that best suits the desires of the Airport. The Airport Director will then negotiate the Agreement with the
selected potential Proposer utilizing the process beginning in Section 2.3 of this Policy. If an Agreement cannot
be reached, it is the sole discretion of the Elko City Council to negotiate with any other prospected Proposer or
reject all proposals. Elko City Council is the final authority on agreements undertaken by the Airport. The
Airport Director will recommend to the City Council the selected potential Proposer. The City Council will vote to
accept or reject the agreement with the Proposer.
2.3 Grounds for Denial
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The Airport Director may reject any application or proposal for anyone or more of the following reasons:
1. The entity, for any reason, does not meet the qualifications and requirements set forth by the Airport.
2. The entity’s proposed activities and/or improvements will create a safety hazard at the Airport.
3. The Airport would be required to expend funds and/or materials in connection with the proposed
activities and/or improvements that the Airport is unwilling or unable to spend and/or will result in a
financial hardship or loss for the Airport.
4. Appropriate, adequate, or available land and/or improvements are not available to accommodate the
proposed activity nor is availability expected in a reasonable time frame.
5. The proposed activity and/or improvements do not comply with the most recent Airport Master Plan or
Airport Layout Plan in effect at that time will be in effect within the time frame proposed by the
Applicant.
6. The development or use of the land will result in congestion of aircraft, interfere with activities of an
existing Operator on the Airport and/or prevent adequate access to the leased premises of an existing
lessee.
7. The entity has intentionally or unintentionally withheld information in the application, proposal,
and/or in supporting documentation.
8. The entity did not make full disclosure in the application, proposal, and/or in supporting
documentation.
9. The entity or an officer, director, agent, representative, shareholder, or employee of the entity has a
record of violating the regulations of the City of Elko, Elko County, the State of Nevada, the Airport, or
any other airport, the FAA, or any other regulation related to the Airport and/or the entity’s proposed
activity.
10. The entity or an officer, director, agent, representative, shareholder, or employee of the entity has
defaulted on any agreement or sublease at the Airport or at any other airport.
ii. The entity has failed to demonstrate adequate financial responsibility or the ability to undertake the
proposed activity.
12. The entity cannot provide adequate applicable insurance or performance bond for the amounts required
by the City of Elko for the proposed activity.
1 3. The entity, officer, director or Applicant has been convicted of a felony.
14. The entity’s proposed activity is or could be detrimental to the Airport.
1 5. The entity desires terms and conditions that are inconsistent with the Airport’s policies or Request for
Proposal issued by the Airport Director.
16. The entity’s proposed activity or use of the land and/or improvements is inconsistent with the Airport’s
purpose, vision, values, goals, or objectives.
R,c,0NALA,RPDRT
2.5 Demonstrating Immediate Need
Entities seeking to occupy or use land and/or improvements at the Airport must demonstrate that the entire
land and/or improvements will be utilized immediately.
2.6 Public Disclosure
Applicants should be aware that the City of Elko, as a government entity, is subject to Nevada Revised Statutes
Chapter 239-Public Records which allows the public to examine documents and observe public meetings of a
government agency.
3.0 AGREEMENTS
3.1 General
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A Party, prior to occupying or using land and/or improvements, is required to enter into an Agreement with the
Airport reciting the terms and conditions under which the Party shall occupy or use the land and/or
improvements at the Airport. This Policy does not include every provision included in the Agreement nor are the
provisions included in the Agreement meant to modify this Policy.
This Agreement shall convey one or more of the following activities: (1) use of the Airport in common with others
in agreement to do so; (2) occupancy and/or exclusive use of designated land and/or improvements at the
Airport; and/or (3) opportunity to provide products, services, and/or facilities at the Airport.
3.2 Use of Lease Premises
3.2.1 Aeronautical Commercial Use
The Agreement will specify the aviation products, services, and facilities that shall be provided by the
Operator (with and without Airport Advisory Board permission). The products, services, and facilities to
be provided by the Operator shall meet the requirements defined in the Minimum Standards. Failure to
meet the Minimum Standards and obtain a permit from the City of Elko before providing additional
products, services, and/or facilities shall be considered a breach to the Agreement.
3.2.2 Aeronautical Non-Commercial Use
The Agreement shall state premises leased by non-commercial operators shall not use Airport land
and/or improvements for commercial activities. Non-Commercial leaseholders who engage in
Commercial Aeronautical Activities shall be considered in breach of the Agreement.
3.2.3 Non-Aeronautical Use
Although not generally favored, non-aeronautical use of land and/or improvements that does not
interfere with the primary aviation use of such land and/or improvements is permitted if the Airport
Director finds the use to be beneficial to the development of the Airport.
If non-aeronautical use of the land and/or improvements is proposed, the Airport Director must
determine that the land and/or improvements will not be needed for aeronautical activities and/or
development, during the term of the proposed Agreement. The use of Airport land and/or
improvements for non-aeronautical activities shall be subject to the prior written approval of the FAA
through an Airport application for a land release for non-aeronautical use.
3.2.4 Restrictions
Airport land and/or improvements shall not be occupied or used for any purpose contrary to: (I) the
best interest of the Airport; (2) the safe, effective operation of the Airport to include the health, safety
and general welfare of the public, aircraft, and other personal property at the Airport; (3) the financial
self-sufficiency of the Airport; (4) future Airport development; and (5) Federal Aviation Administration’s
Grant Assurances.
3.3 Subleasing
3.3.1 Subleasing Privileges Permitted in the Commercial Lease Agreement
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An Operator may enter into an Agreement with the Airport allowing subleasing of space for Airport
parking (tie-down and/or hangar space) and/or subleasing of office, shop, or other designated areas
subject to prior written approval of the Airport Director in the lease agreement document.
If the Airport permits subleasing in the Agreement with the Operator, an approved sublease form
consistent with the Agreement between the Operator and the Airport may be used by the Operator to
assist in the consent process.
The sublease shall be submitted to the Airport Director in writing for review and approval. The
Operator shall not be required to pay the Airport Enterprise Fund of the City of Elko any portion of
revenue or profit related to subleasing activities. The sublease agreement must be submitted to the
Airport Director for review and approval within 10 business days of execution of Sub-lessee. Sublease
business terms shall be submitted with the sublease agreement to the Airport Director. Sub-lessee may
not occupy the premises without Airport Director approval of sublease agreement.
3.3.2 Subleasing Privileges Not Permitted in the Commercial Lease Agreement
If subleasing is not permitted in the Agreement between the Operator and the Airport, the Operator
must obtain written approval of the Airport Director prior to subleasing any land and/or
improvements. Any activity inconsistent with the Airport Master Plan, Airport Layout Plan, and other
plans associated with the Airport, and/or is considered to not be in the best interest of the Airport will
not be approved by the Airport Director.
The sublease agreement shall be submitted to the Airport Director for review and approval. The
sublease may be rejected for any of the reasons identified in Section 2.4 (Grounds for Denial).
If an Operator subleases without advance written approval of the Airport Director, the Operator shall
pay the Airport Enterprise Fund of the City of Elko fifty percent (50%) of the sublease revenue in
addition to all rents and fees paid to the City for the same subleased land and/or improvements. The
City of Elko Finance Department or agent of this department may audit the Operators financial records
to determine the amount that shall be paid to the City.
The Operator shall reimburse the Airport Enterprise Fund of the City of Elko for reasonable attorneys
fees and expenses incurred by the Airport related to subleasing that is not permitted by the Agreement.
A sub-lessee may not occupy the premises without prior written approval by the Airport Director.
3.3.3 Sub-lessee Obligations
Sub-lessee shall comply with all regulations defined in this Policy and all other directives issued by
Elko Regional Airport; maintain all required insurances and coverages as defined in the Minimum
Standards; and pay all required fees. A sub-lessee desiring to engage in Commercial Aeronautical
Activities at the Airport must abide by the Airport’s Minimum Standards, prior to any Commercial
Activities.
3.3.4 Sub-lessee Stipulations
Unless stated otherwise, all sublease agreements shall be subject to all terms and conditions of the
Agreement between the Operator and Elko Regional Airport. Subleasing land and/or improvements
without written approval by the Airport Director shall be considered a breach in the Agreement between
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the Operator and the Airport. Any sublease agreement made contrary to this Policy and without
written approval by the Airport Director is considered null and void. Sublease of land and/or an
improvement for non-aeronautical activities is subject to prior written approval of the FAA.
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3.4 Transfer of Interest
3.4.1 Assignment
A Party shall not assign an Agreement, any part or interest of an Agreement, or any rights or
obligations the Party has under an Agreement without prior written approval by the Airport Director. I
fa Party desires such an assignment, the Party shall make application as identified in Section 2 and
request written approval from the Airport Director. The Airport may deny such request for any reason
identified in Section 2.4 (Grounds for Denial).
If written approval of the assignment is granted by the City the Party shall reimburse all attorney fees
and expenses incurred by the City related to the assignment. The Assignee shall comply with all
regulations defined in this Policy and all other directives issued by the City of Elko; maintain all
required insurances and coverages as defined in the Minimum Standards; and pay all required fees.
Any assignment made without prior written approval by the City shall be considered null and void and
a breach to the Agreement.
3.4.2 Change in Majority Ownership
The City shall provide prior written approval to any change in the majority ownership of a Party or
operating entity. If any Party desires to change the majority ownership of the operating entity, an
application and transfer fee must be submitted to the City. The City may deny such request for any
reason identified in Section 2.4 (Grounds for Denial). If written approval of the change in majority
ownership is granted by the City, the Party shall reimburse all attorney fees and expenses incurred by
the City related to the change in majority ownership. Any change in malority ownership made without
prior written approval by the City shall be considered null and void and a breach to the Agreement.
3.5 Term
3.5.1 Lease Extensions
The initial term of all Agreements will be negotiated between both parties and recommended by the
Airport Director to Elko City Council for approval. The City is not obligated to automatically grant a
term of any duration once the initial term has expired.
The term of the Agreements may be extended twice for five (5) years if the land is not needed for
airport development and if the premises are structurally sound and capable of safe and legal occupancy
for the remaining term based on the investment made to the hangar structure. Any renewal options
related to a lease shall be subject to the same conditions set forth in the original base term. The City
maintains the right to adlust any and all rates and charges in effect at the commencement of each lease
extension.
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3.5.2 Investment Term Adjustment
Elko Regional Airport encourages tenant construction as a component of facility development. When a
tenant makes approved capital improvements to the facility which increases structural integrity or the
facility’s market value, the tenant’s investment in those improvements will be considered toward an
increased lease term.
The Investment Term Adjustment is available only to Airport Tenants who have reversionary leases.
The term adjustment is to provide tenants adequate time to depreciate investments in existing hangars
and buildings on the Airport. The lease terms are proportionately longer for greater investments.
The lease term adjustment shall not exceed the useful life of the facility.
No lease shall exceed 50 years at any given time.
Extensions may be offered for capital improvements which increase the value of the hangar. The
minimum lease term adjustment shall be one year. After the first year the lease term shall be adjusted
in six month increments. The final calculation shall be rounded down to the nearest six month
increment. Only improvements completed in a one year span can be added together for a lease term
adjustment.
Capital Improvement amounts for Lease Term
Adjustments (Dollars per year extension)
2,000 2,999
$10,000
$10,500
3,000—3,999
4,000—4,999
$11,250
$12,000
5,000—5,999
$12,750
6000— 7,999
$13,750
8,000 or Greater
**The Lease Term Adjustment table will be updated annually based upon Cr1.
Hangar Size (SQ FT)
-
When intending to improve a facility at the Airport, a Tenant shall submit a written request to the
Airport Director. The request shall include sufficient detail outlining the purpose of the facility,
improvements to be made and the anticipated cost. Tenants should keep documentation of all
improvements to hangar facilities for the purposes of lease term extension calculations for future lease
negotiations.
Upon completion of the improvements, the Tenant will submit a statement of actual costs certified by
the Tenant’s financial officer or by a certified public accountant. The Airport Manager will prepare an
agreement which shall amend the lease terms based upon actual construction costs.
3.6 Improvements
All improvements made by a Tenant must comply with all applicable regulatory measures including all those
stipulated by the City. Unless otherwise specified in the Agreement, the ownership of all permanent
improvements shall revert to the City of Elko upon the end of the term of the Agreement unless the structures
are removed from the tenant property and the land returned to a state that it existed prior to the hangar’s
construction at the end term of the lease.
3.7 Responsibilities
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3.7.1 City of Elko & Elko Regional Airport
Unless otherwise stated in the Agreement, the City of Elko is responsible for maintenance of all public
Airport infrastructure and common areas to include runways, taxiways, public apron areas, roadways,
NAVAIDS, and associated areas.
3.7.2 Lessee Responsibilities
Unless otherwise stated in the Agreement, the Lessee shall be responsible for all maintenance of land
and/or improvements on the leased premises. The responsibilities of the Lessee include all structural
components, all exterior and interior maintenance, landscaping, janitorial, trash removal, snow
removal, and sweeping.
The Lessee shall be responsible for all utilities, separately metered, shall maintain all insurance
coverages as defined in the Minimum Standards, and shall remain current on all taxes and/or
assessments charged by any applicable government entity or agency including personal property,
income and other business tax.
The failure of a Lessee to maintain the land and/or improvements and/or pay all utilities, insurance,
and taxes shall be considered a breach in the Agreement.
3.8 Condemnation
The Airport Director shall engage an appraiser, in the event of a full condemnation action, to determine the fair
market value of the leasehold interest held by the Lessee. Based on that valuation the airport will determine if
it would like to purchase the leasehold interest (hangar) from the Lessee. The airport may choose not to
purchase the hangar and require the lessee to remove the hangar from the airport at the expiration of the lease
if the hangar is found in a location or in a condition that is not viable for the airport.
If the Airport determines that it is in its interest to purchase the hangar. The Agreement shall terminate on the
date of the physical taking (as if the date of the taking were the date originally fixed in the Agreement for the
expiration term). Upon termination of the Agreement, the City of Elko shall pay the Lessee the appraised fair
market value minus any fees due to the City.
In the event of a partial condemnation, the Agreement shall not terminate. The rents due to the City during the
unexpired portion of the Agreement shall be reduced proportionally based upon the square footage of the
leased premises.
In the event of a full or partial condemnation by an Agency other than the City of Elko, the City and the Lessee
shall each be entitled to receive or retain separate awards or a portion of lump sum awards as may be allocated
to each party based upon the respective interest held by each party in any condemnation proceeding.
Condemnation shall follow all applicable regulatory measures (including those imposed by the FAA) for
condemnation proceedings and any appraisal report shall meet the requirements of such regulatory measures.
If there is any inconsistency between this Policy and such regulatory measures, the regulatory measures shall
prevail.
3.9 Relocation
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In the event relocation is found to be necessary (e.g. to correct Part 77 variations, ensure use consistent with the
Airport Layout Plan, to facilitate future development of the Airport), the City shall provide the Lessee with land
and/or improvements that are comparable to the land and/or improvements currently being occupied and/or
used by the Lessee. Such land and/or improvements shall be leased to the Lessee at the same rent and under
the same terms and conditions as stipulated in the existing Agreement.
If comparable improvements are not available, the City shall buyout the Lessee’s interest in any improvements
that have been made by the Lessee. The amount to be paid shall be determined by an appraiser.
The City shall pay all reasonable relocation costs and expenses associated with moving the Tenant. Relocation
shall follow all applicable federal and state measures for relocation proceedings and any appraisal report shall
meet the requirements of such regulatory measures. If there is any inconsistency between this Policy and such
regulatory measures, then the regulatory measures shall prevail.
4.0 RATES AND CHARGES
4.1 General
It is the intent of this section to give guidance on setting rates and charges for Airport Leases which are in line
with the current market. In addition, the City is required to maintain a rent and fee structure which makes the
Airport as self-sustaining as possible while preserving and improving the Airport. Without unjustly
discriminating, it is the policy of the Airport to pursue terms and conditions that provide an equitable return for
the Airport and to encourage private investment. All Agreements adequately compensate the Airport for the use
of leased premises to a Tenant.
Parties may not lease land and/or improvements that have the same attributes, uses and/or values; therefore,
the Airport may charge different rates to similar users of the Airport as long as the rates are not unjustly
discriminatory.
It is recognized that Agreements reached through negotiation or a competitive process may produce rents, fees,
or other charges that may be higher than those paid by similar parties and/or users.
4.2 Mechanism to Set Rates
The Airport Advisory Board will not engage in unjust economic discrimination among tenants, nor will it impose
discriminatory terms. The base land and/or improvement lease rate for each leasehold will be determined
based on fair market values. Building base lease rates will be determined by market comparison, supply and
demand or current appraisal of the facility by a firm chosen by the Airport. As new ground and building leases
are entered into, or leases are amended, the Airport reserves the right to update lease rates to current values.
Rents can be adjusted and/or established through a competitive proposal process.
4.3 Variation in Rates
The Airport Advisory Board may set different rates for different tenants based on rational factors that shall
include but not be limited to: the value of property to be leased, the amount of use projected of common
facilities, the type of use being made and the degree of competition for the facility to be leased.
4.4 Adjustment of Rents
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All rents shall be adjusted on an annual basis throughout the term of the Agreement. Rates will be adjusted
during the life of a lease. Adjustments may be based on one of three types; annual adjustment linked to the CPI,
an adlustment based on re-evaluation of property or some other measure as specified in the agreement or as
negotiated.
4.5 Establishment and Adjustment of Fees
Fees for the occupancy and use of land and/or improvements shall be established by the City of Elko to assist in
covering the costs associated with the development, operation, and maintenance of the Airport. Fees may
include, but are not limited to, fuel flowage fees, transient aircraft fees, and/or permit fees. Fees may be
adjusted by the Elko City Council on an annual basis based upon the Airports fiscal year budget for the Airport.
The Elko City Council reserves the right to use other means and/or establish and/or charge additional rents,
fees, or other charges for the use and/or occupancy of the Airport land and/or improvements.
4.6 Payments of Rents, Fees and Other Charges
Tenants must be current to the City in all payments of rents, fees, and other charges under any and all
Agreements in order to occupy or use the land and/or improvements. Failure to remain current in the payment
of all rents, fees, and other charges to the City will be grounds for termination of the Agreement between the
Lessee and the City. The City may enforce the payment of rent, fees, and other charges under the Agreement by
any legal means available to the City as provided by Nevada law. All rents, fees, and other charges assessed by
the City not paid within 10 days of being due shall incur a ten percent (10%) late fee.
4.7 Bookkeeping and Records
The Lessee shall keep records of amounts due to the City for rents, fees, or other charges related to the
occupancy and/or use of the Airport land and/or improvements and/or engaging in activities at the Airport. The
City shall be entitled to access such records upon 30 days written notice. The City/Airport Advisory Board
reserves the right to audit such records.
4.8 Bookkeeping and Records
There shall be no granting of the exclusive right to provide or engage in any aeronautical activity at the Airport;
and no lease, sublease, operating permit or other agreement that is or shall be in effect at the Airport that
creates such a right.
5.0 ESTABLISHMENT OF FAIR MARKET VALUE ON NON COMMERCIAL HANGAR LEASES
The Airport shall engage an appraiser who meets the qualifications defined in Section 5.3 of this Policy to
conduct appraisals of airport land and/or improvements to determine fair market value. The appraiser shall
use current appraisal methods that are found to be appropriate by the Airport Advisory Board for the appraisal
of Airport land and/or improvements. The appraiser shall use appropriate and lustifiable rate of return for
airport land and/or improvements. Airport land and/or improvements shall be appraised assuming the highest
and best aviation use of the property. It shall also be assumed that the property will continue to be part of the
Airport and will have access to the infrastructure and amenities of the Airport. The appraisal must be conducted
by a person that is a Certified General Appraiser in the State of Nevada in good standing with the State and
follows the Uniform Standards of Professional Appraisal Practice.
5.1 Appraisal Qualifications
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The appraiser shall hold a State Certified General Appraiser Certificate issued by the State of Nevada. Any
appraiser selected to appraise Airport land and/or improvements shall have working knowledge of the aviation
industry including airport, air carriers, and general aviation as appropriate. The appraiser shall also
demonstrate familiarity with FAA rules, regulations, and policies pertaining to valuing airport properties.
The selected appraiser must have performed a minimum of five (5) public (City, County or State) property
appraisals within the last five years and shall provide the Airport Advisory Board a list of locations and types of
appraisals performed. Preference is given to appraisers who have completed airport land appraisals within
the State of Nevada.
5.2 Dispute Resolution
A Lessee may engage a second consultant (appraiser) that meets the qualifications set forth in this Policy if the
Lessee disagrees with the Fair Market Rent (value) found by consultant (appraiser) hired by the Airport. All
fees and expenses associated with the second consultant (appraiser) shall be paid for by the Lessee.
If the two appraisals show a variance of less than ten percent (10%) the average of the two appraisals shall be
used. If the variance between the two appraisals is more than ten percent (10%) and an Agreement cannot be
reached between the Airport and the Lessee, the first and second appraisers shall mutually agree on a third
appraiser (that meets the qualification standards) to make the final determination. If the first and second
appraisers cannot decide on a third appraiser the Airport Advisory Board shall appoint a third appraiser (who
meets the qualification standards) to make the final determination.
The third appraiser shall review the results of the first and second appraisals and may request additional
information, clarification, or justification from the first and second appraisers. The third appraiser has the right
to gather, analyze, and consider additional data as deemed appropriate to make a final determination. The
decision of the third appraiser shall be accepted by the Airport and the Lessee and shall be legally binding upon
both parties.
All fees and expenses associated with the work of the third appraiser shall be paid for equally by the Airport
Advisory Board and the Lessee 50/50. During any period of disagreement between the Airport and the Lessee
regarding rent adjustment, the Lessee shall be responsible for the payment of the adjusted rent recommend by
the first appraiser. Once the disagreement is resolved, the difference between rent paid and the final rent
determination shall be paid to the Airport Advisory Board or refunded to the Lessee.
L
Ii
ktELKO
RFG,ov4’. Ainor
P a ge
20
AIRPORT LEASE APPLICATION FORM
Elko Regional Airport
Please read the Airport Hangar Lease Rates and Charges Poilcy before filling out this application.
Applicant Name:
Contact Person:
Phone:
Email:
Mailing Address:
Lease Area Location (if known):
Type of Lease Requested (Check One):
LI
LI
LI
LI
LI
Ground Lease Only
Non-Aeronautical Building
Sublease Application
Commercial Aeronautical
Non Commercial Aeronautical
If a sublease application, name of entity whom is subleasing:
Building Name (Airport 2 letter Designation, if known):___________________________________________
Provide on additional sheet attachments that describe the following:
1. Detailed description of intended use of airport leasehold
2. Describe in detail the means and methods to accomplish the intended use of airport leasehold
Development of Property:
Anticipated Beginning Date:
Anticipated Value of Development:
?ELKO
P a g e
REGIONALAIRPORT
Applicant Signature (if Sublease, signature of Lessee)
Date
I
21
£
ELKO
REcrnv,41 Ainpt,pr
Page
122
Non-Commercial Lease Reversion Flow Chart
‘I,
Wants to
Renew?
No
r
Jr
Lessee
Yes
Hangar Facility
ffl1,J
Assessment
Hangar is in good
condition, with demand
for use and is in a
location that does not
pose an obstacle to near
term airport expansion as
depicted on the ALP
—
Appraisal of Current
Market Value of
Hangar
1
Hangar is in poor
condition, is no longer A
needed, or is located in
a site that is in conflict
for near term airport
expansion as depicted
Ii
—
Hangar is in good
condition, with demand
for use and is in a
location that does not
pose an obstacle to near
term airport expansion as
depicted on the ALP
—
I
Hangar must be
Removed and Land
Returned to
Condition prior to
Development
5W
-
‘I
City Council Purchases
Hangar is in
poor
condition, is
no longer
needed, or is
located in a
site that is in
conflict for
near term
airport
expansion as
depicted on
the ALP
-
LIIIT1 4ii*i
Hangar based on
Appraisal Price on
Hangar
r
1
Hangar a.
Appraised ft
Sale to Airpc
is not renew
I
on Reinvestr
anarInuste_
*
City Council Purchases
Hangar based on
Appraisal Price on
Hangar
I
anet11rnrd a
ondition rior
%
tELKO
R,c,n.tL
Page 123
4 gnponr
Commercial Lease Reversion Flow Chart
I
Hangar Facility
Assessment
I
Hangar is in good
condition, with demand
for use and is in a
location that does not
pose an obstacle to near
term airport expansion as
depicted on the ALP
I
Hangar is in poor
condition, is no longer
needed, or is located in
a site that is in conflict
for near term airport
expansion as depicted
on the ALP
I
Lease is Extended
Due to New
Investment Made
into Hangar by
Existing Lessee
/
Hangar and Land Revert to
Airport upon end of
Agreement Extension
Hangar and Land
Revert to Airport and
New Lease Drafted
based on Professional
Appraisal of Hangar
and Land
Hangar must be
Removed and Land
Returned to
Condition prior to
Development