HomeMy WebLinkAbout26-0930EXHIBIT A
Leasing and Development Policy 1
Effective: July 14, 2026
Table of Contents
Article I. Introduction ............................................................................................................................. 2
Section 1.01 Purpose ........................................................................................................................... 2
Section 1.02 Authority of the City ....................................................................................................... 3
Section 1.03 Applicability .................................................................................................................... 3
Section 1.04 Compliance with Federal, State, and Local Law ............................................................. 4
Article II. Leasing Airport Land or Improvements ................................................................................... 4
Section 2.01 Principal Development Criteria ...................................................................................... 4
Section 2.02 Designated Areas ............................................................................................................ 5
Section 2.03 Pre-Leasing Application Meeting .................................................................................... 5
Section 2.04 Airport Lease Application ............................................................................................... 6
Section 2.05 Lease Negotiation and Approval/Rejection .................................................................... 6
Section 2.06 Requests for Proposals ................................................................................................... 7
Article III. The Lease Agreement .............................................................................................................. 7
Section 3.01 Key Terms and Conditions .............................................................................................. 7
Section 3.02 Other Standard Terms and Conditions ........................................................................... 9
Section 3.03 Maintenance of the Leasehold ..................................................................................... 10
Section 3.04 Additional Lease Requirements .................................................................................... 10
Article IV. Rents, Fees, and Agreement Term ........................................................................................ 11
Section 4.01 Rent............................................................................................................................... 11
Section 4.02 Adjustment of Rent ....................................................................................................... 11
Section 4.03 “Through the Fence” Agreements ................................................................................ 11
Section 4.04 Fees ............................................................................................................................... 12
Section 4.05 Lease Term .................................................................................................................... 12
Section 4.06 Lease Extensions ........................................................................................................... 12
Article V. Reversion of Improvements to the City................................................................................. 13
Article VI. Revisions ................................................................................................................................ 14
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Effective: July 14, 2026
Article I. Introduction
As a recipient of Federal Aviation Administration (“FAA”) Airport Improvement Program funding, in
addition to other federal funding, the City of Denton (“City”) is obligated to operate Denton Enterprise
Airport (“Airport”) in accordance with FAA Grant Assurances. Among these federal obligations is the
requirement to operate the Airport for the use and benefit of the public and for the Airport to be made
available to all types, kinds, and classes of aeronautical activity on reasonable terms and without unjust
discrimination.
These Grant Assurances further obligate the City to maintain a fee and rental structure for the facilities
and services at the airport, making the Airport as self-sustaining as possible under existing circumstances
and avoiding unjust economic discrimination within classes of users.
Section 1.01 Purpose
The Airport Lease and Development Policy (“Policy”) sets forth the parameters that shall be used by the
City for leasing land and/or improvements for commercial or non-commercial general aviation purposes
at the Airport.
The Policy seeks to:
1. Promote Aviation Growth by encouraging the provision of essential aeronautical activities and
aviation services for the benefit of the public while preserving the City’s financial investment in
the Airport. Non-aeronautical uses of Airport land will be permitted only on portions of the
Airport not needed for aviation purposes and in accordance with FAA policy.
2. Apply Standards Uniformly through equitable, reasonable, and not unjustly discriminatory
treatment of all lessees and permittees while promoting the highest and best use of Airport
property. The Policy facilitates orderly management of and ensures consistent quality of
facilities at the Airport.
3. Promote Long-Term Financial Self-Sufficiency through a rental, rates, and fees structure that
maximizes Airport revenue for its current and future development, management, maintenance,
and operating expenses.
4. Ensure Compliance with applicable laws, regulations, ordinances, policies, guidelines, and
requirements as they relate to the application for and acceptance of federal funds. This includes
FAA regulations and current airport Minimum Operating Standards, Rules and Regulations, and
other regulatory requirements as may be adopted or amended by the City.
All new and renewed lease agreements will require adherence to this Policy, and, at a minimum, will
promote and require fairness and consistency, uniform application of this policy, and prohibit economic
discrimination relative to aviation leases.
The City will establish rents and fees associated with this Policy, consistent with FAA policy and in
support of grant assurances, balancing competitiveness with financial sustainability, with provisions for
periodic review and adjustment based on market conditions and operational needs.
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Section 1.02 Authority of the City
The Airport is owned, operated, and governed by the City, which expressly reserves the authority to
lease Airport-owned land and/or improvements, allows the occupancy and/or development of Airport-
owned land or improvements, grants the right to engage in any activity at the Airport, and implements,
supplements, amends, modifies, approves, or adopts any agreement, policy, standard, rule, regulation,
or directive.
Any person wishing to lease for the exclusive use of any parcel of land on the Airport, or of any City-
owned or operated facility, must enter into a written lease agreement with the City specifying the terms
and conditions of such use. The City Council may establish by ordinance those rates and fees, and those
terms and conditions it deems appropriate and applicable to Airport use.
The Airport Director, acting under the authority of the City Manager, shall take those necessary decisions
and/or actions to ensure compliance with:
• Existing leases, licenses, permits, and other written agreements between the City and persons
within the Airport;
• This Policy, and those other policies, rules, regulations, or ordinances established by the
authority of the City Council, which apply within the Airport;
• Those responsibilities levied on the City by the federal or state governments concerning Airport
operations and management.
The Airport Director may authorize an interim or emergency agreement to occupy or use City-owned
improvements and infrastructure by appropriate public agencies. Examples of situations that may be
suitable for such authorizations are military or law enforcement activities, the temporary occupation of
airport areas by government agencies during natural disasters, or aircraft accident investigations.
The Airport Manager may waive or modify any portion of this Policy for the benefit of any governmental
agency performing non-profit public services, fire protection, or firefighting operations. The City
manager or designee may waive or modify any portion of this Policy for any person when it is
determined that such waiver or modification is in the best interest of the City and will not result in unjust
discrimination among airport users or a violation of the Grant Assurances.
Section 1.03 Applicability
This Policy shall apply to any new agreement or any new amendment to an existing agreement relating
to the leasing of land and/or improvements, including the establishment or adjustment of rents, rates,
fees, and other charges for commercial or non-commercial general aviation aeronautical activities.
This Policy shall not affect any agreement or amendment thereto that is properly executed before the
date of adoption of this Policy, except as provided for in such agreement, in which case, this Policy shall
apply to the extent provided by such agreement.
The City reserves the right from time to time to amend, supplement, revise, alter, rescind, or add to the
policies and procedures listed herein, either in part or in their entirety. The Airport further reserves the
right to use this Policy for the selection of non-aeronautical uses as it deems appropriate.
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Effective: July 14, 2026
Section 1.04 Compliance with Federal, State, and Local Law
This Policy is subject to federal law, FAA regulations, state statute, and local ordinance. In the event of
provisions of this policy conflicting with the aforementioned laws, the aforementioned laws shall prevail.
If any section, subsection, sentence, clause, or phrase of these policies and procedures is, for any reason,
held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall neither
affect nor impair any of the remaining provisions.
Article II. Leasing Airport Land or Improvements
Entities shall not occupy Airport land or improvements for any purpose unless the entity has an
agreement with the City, occupies a hangar under an approved sublease, or occupies a hangar under a
rental agreement with a duly permitted hangar rental business. Any use of leased property must be
listed and approved within the lease agreement prior to allowing such use. In addition, entities shall not
conduct aeronautical or non-aeronautical commercial activities at the airport unless the entity has an
Airport Business Permit authorizing such activities. Entities shall also comply with the Denton Code of
Ordinances, Airport Rules and Regulations, Minimum Operating Standards, and any other applicable
federal, state, and local laws and regulations.
Section 2.01 Principal Development Criteria
The Airport has limited land resources, and it shall adequately evaluate proposed Airport leases and
developments to ensure that the highest and best use of each property is realized and that such use is
compatible with future Airport development and land use plans. Leasing or development proposals will
be evaluated in accordance with this Policy. Such evaluation will look to whether the proposed use
conforms to the following (collectively, the “Principal Development Criteria”):
1. The use is shown to be appropriate and consistent with the Airport Layout Plan (“ALP”), Airport
Master Plan, qualified appraisals, and other relevant Airport planning documents or Airport
expansion or development plans or goals.
2. The use will not interfere with the normal and efficient operation of the Airport or with the
ability of other Airport users to enjoy reasonable access to their leaseholds or the public areas of
the Airport, including its runway, public taxiways, and aprons. The use also considers access to
public areas of the Airport from adjacent land.
3. The use will advance the goal of achieving financial self-sustainability for the Airport by
providing a consistent, reliable, and appropriately substantial source of revenue to the Airport,
whether in the form of rent or other rates, fees, or charges.
4. The use will provide long-term benefits to the Airport through the tenant’s construction,
expansion, maintenance, or other development of useful and valuable improvements or
facilities (or through the tenant’s efficient use of improvements to existing Airport property or
facilities).
5. The use will support the City’s efforts to make the Airport an attractive, aesthetically pleasing
gateway to, and source of economic development for, the City.
6. The use will not involve non-aeronautical use of Airport property designated for an aeronautical
use on the Airport Layout Plan, or facilities more appropriate or necessary for aeronautical use,
as determined at the sole discretion of the City.
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7. The use does not pose exceptional or unreasonable financial, legal, or operational risk to the
Airport or the City.
8. The use does not violate any applicable laws or regulations or any Grant Assurances or similar
state or local obligations and does not pose a substantial risk of causing the City to violate any
such laws, regulations, Grant Assurances, or obligations.
Section 2.02 Designated Areas
The City reserves the right to designate specific Airport land and/or improvements in which commercial
and/or non-commercial aeronautical activities may or may not be conducted. The right to use the
Airport and any airport land or improvements is non-exclusive except for the land and or improvements
leased exclusively to an entity by the City.
The City may establish, through the Airport Master Plan or other Council-approved plan, certain areas
approved for particular types of commercial and non-commercial activities within the Airport. These
designated areas will indicate proposed future uses and activities for segments of the Airport property.
If designated areas are established, all proposed activities and developments must be located in a
designated area that corresponds to and does not conflict with such use.
To the extent allowed under FAA regulations, the City reserves the right to refuse proposals to use or
develop Airport land for aeronautical or non-aeronautical purposes.
Section 2.03 Pre-Leasing Application Meeting
Prior to submission of a Lease Application, a prospective lessee shall schedule an Airport pre-leasing
application meeting with Airport staff. The purpose of the meeting is for airport staff to provide
information on the leasing process, discuss the requirements of this Policy, and provide basic feedback
on the proposal’s alignment with the principal development criteria.
Prior to the pre-leasing application meeting, and in a form prescribed by the City, a prospective lessee
must, at a minimum, provide the following to Airport staff:
1. A conceptual plan or layout of the development area, to include, at a minimum, leasehold
boundaries, all proposed buildings, including hangar door height, if known, paved ramp or apron
areas, vehicular parking points of ingress and egress, fencing, and gates. It shall further include
the total area of the leasehold, in square feet, and of any buildings, ramps, aprons, and vehicular
parking areas.
2. The estimated value of the capital investment, if known.
3. A description of the activity or activities that the applicant proposes to conduct under its
requested development, with sufficient detail to adequately explain the benefits of the activity
or activities to the Airport and the City and to demonstrate that it meets the Principal
Development Criteria.
4. The estimated increase in based aircraft and itinerant air traffic resulting from the development.
5. For any commercial activity, the projected number of employees and hours of operation.
6. The names and contact information of the prospective lessee(s) or, if an incorporated entity, of
all parties owning an interest in the entity.
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Section 2.04 Airport Lease Application
After the pre-leasing application meeting, but prior to entering into formal lease discussions or
negotiations, a prospective lessee shall complete a written application for an Airport lease in a form
prescribed by the City and pay any associated fees as established by the City Council. The application
shall include, at a minimum:
1. All information required for the pre-leasing application meeting, to include any updates
recommended by Airport staff.
2. An estimate of the value of the proposed capital investment on the premises, if not previously
provided.
The City reserves the right to request additional information from the lease applicant. Upon receipt,
Airport staff will review the application and determine if the proposed use and leasehold location
comply with this Policy. Noncompliance may result in the rejection of the lease application.
The City Council shall have the right to adopt an application fee and publish it in the Airport Rates and
Fees schedule.
In the event two or more complete applications are received for the same property prior to any one
applicant’s application being approved, the City will initiate a Request for Proposals (RFP) process (See
Section 2.06)
Section 2.05 Lease Negotiation and Approval/Rejection
A lease application shall not be considered approved until:
1. Review and written notification of approval of the proposed development application by the
Airport
2. Participation by the applicant in a Development Services Pre-Application Conference
3. Payment of the applicable fee
Where applications are incomplete or, after review, do not meet the requirements of this Policy, the
application will be rejected and the applicant notified. The applicant may resubmit their application
within 90 days of the original application submission without payment of the application fee.
Approval of an application secures for the applicant the exclusive right to pursue a lease with the City for
180 days. During this time, the Airport will not consider nor discuss the leasing or development of the
subject property with other interested parties. If no lease agreement is executed by the end of the 180
days, the application will expire, and the City may accept applications for the property from other parties
or a resubmittal of the application by the prospective lessee whose original application expired. This
180-day timeframe may be extended in writing by the Airport Director.
At the request of the City, the applicant shall:
1. Be responsible for acquiring, at its sole cost, a new or updated survey of the proposed lease
boundaries, provided by a surveyor qualified to perform such work in the State of Texas.
2. Be responsible for acquiring, at its sole cost, a new or updated appraisal of the proposed
leasehold property for the purpose of confirming the fair market value rental rate for the
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proposed use. The appraiser shall be approved by the City and qualified to perform such work
in the State of Texas.
Within 30 days of receiving a completed application, including survey and appraisal, as required, the
Airport shall convey the key terms and conditions (including rents, fees, and other charges) of a
proposed lease agreement to the applicant. The applicant shall, within a reasonable amount of time,
indicate if the key terms and conditions proposed by the Airport are acceptable or provide revised key
terms and conditions. The Airport Director may negotiate the revised key terms and conditions and/or
initiate the competitive proposal process described in Section 2.05.
All new lease agreements or amendments shall be reviewed by Airport staff and considered for
recommendation to the City Council by the Airport Advisory Board. Approval by the City Council shall be
required for any lease agreement or amendment.
Section 2.06 Requests for Proposals
As Airport land and/or improvements exist or become available for leasing, the City may, at its sole
discretion and at any time, including upon receipt of an application for a lease or development, issue a
request for proposals to optimize the development of or to assess the level of market demand and
competitiveness for a proposed activity or use of Airport property. Any competitive proposal or bidding
process shall comply with the City of Denton’s purchasing policies and directives.
A request for proposals shall also list the criteria the City will use to make its selection, including but not
limited to, compliance with this Policy and the Principal Development Guidelines, the benefits generated
by the proposed activity, and the long-term revenue generated by the proposal. The City may consider
additional factors that it deems relevant to make its final decision regarding the use or disposition of the
Airport premises and privileges in question. The City shall examine all applications and select a proposal
for further lease negotiations if, in the City’s opinion, it is in the best interest of the Airport and the
community.
Article III. The Lease Agreement
Lease Agreements are designed to protect the public interest and contain more restrictive clauses than
private-sector leases. Liabilities associated with possession and control of real property will be
transferred to the Lessee to the greatest extent possible, including compliance with and subordination to
all applicable federal, state, and local laws and regulations. Leases will additionally be subordinate to the
City’s Grant Assurances, other applicable federal and state laws and regulations, and City ordinances and
regulations.
The following are not inclusive of all lease terms, conditions, and obligations. Authority is granted to City
staff to negotiate leases that promote the Principal Development Criteria and the objectives of this
Policy.
Section 3.01 Key Terms and Conditions
(a) Recitals:
All recitals shall include, at a minimum, the desires of the City and the Lessee. All recitals shall be
incorporated into the agreement by reference.
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(b) Premises:
Each agreement shall meticulously describe the specific area of Airport property to be occupied,
including precise boundaries and any shared or common areas. Leases will clearly outline the
permitted activities and any special conditions or restrictions on usage, ensuring compatibility
with airport operations and safety regulations.
(c) Use:
Each agreement shall make clear the intended use of the premises.
1. Commercial aeronautical activities – The agreement shall identify the products,
services, and/or facilities to be provided by the operator. The agreement may identify
optional products, services, and/or facilities that may be provided by the operator with
or without the approval of the Airport Director.
2. Non-commercial aeronautical activities – For non-commercial occupancy and/or use of
the Airport land and/or improvements, the Agreement shall stipulate that the Lessee
shall not offer or provide commercial products, services, or facilities or conduct
commercial activities at the Airport or from the leased premises without an amendment
of the lease agreement.
3. Non-aeronautical activities – Leasing Airport land and/or improvements for non-
aeronautical activities is not generally favored by the City of the FAA. The City may, in
its sole discretion, consider such use in the event the non-aeronautical use of Airport
land and/or improvements does not interfere with the primary aeronautical use of
Airport land and/or improvements and is not in violation of any legal requirements,
including the Grant Assurances. If such use is contemplated, the applicant must prove
that the subject Airport land and/or Improvements will not conflict with the existing or
foreseeable aeronautical use of the property during the entire term of a proposed
agreement. The leasing of Airport land and/or Improvements for non-aeronautical
activities will not be allowed without the prior written consent of the FAA.
4. Prohibited Activities: All prohibited uses and activities of the premises shall be
identified; however, no lease agreement will allow any activities prohibited by
applicable federal, state, or local laws and regulations even if such use is not specifically
set out by the lease agreement.
(d) Term
The original term, commencement date, and ending date shall be conveyed in the Agreement.
The term of the agreement shall be commensurate with the value of capital investment made by
the Lessee into the leased premises and/or on the Airport and sufficient for the Lessee’s
amortization of the investment, consistent with Article IV of this policy.
(e) Rents and Fees
The applicable rents and fees to be paid by the Lessee to the City shall be identified in the
agreement. Rents and fees shall be established and adjusted in accordance with Article IV of this
policy.
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(f) Improvements
A description of the improvements, including minimum square footage of occupied space, shall
be included in the agreement. The Lessee shall procure all necessary permits and certificates,
including but not limited to all City building, fire, safety, final certificate of occupancy, and meet
other applicable requirements for improvements located on Airport property and within the
legal boundaries of the Airport as identified on the Airport Layout Plan.
Each lease agreement shall include a deadline by which the Lessee must secure a building permit
and a deadline by which construction must be completed and a certificate of occupancy issued,
if applicable. Each deadline shall be sufficient for development approval and construction,
respectively, and incorporate a reasonable timeframe for completion.
Upon expiration of the term of the agreement, ownership of permanent improvements that
have been made to the leased premises by the Lessee shall revert to the City. The City shall
retain the right to require the demolition and removal of the improvements and the return of
the premises to its original condition and character by the Lessee, normal wear and tear
excepted.
Section 3.02 Other Standard Terms and Conditions
Additional terms and conditions within the Lease Agreement shall include, but are not limited to:
1. Procedures for entering into a sublease agreement for all or part of the leased premises,
including approval processes and sublessee obligations, to prevent unauthorized use and
maintain accountability. Subleasing shall be authorized with the operation of a permitted
commercial hangar rental business or with City consent, as applicable. All sublease agreements
shall be approved in accordance with the City of Denton Code of Ordinances.
2. Procedures for transferring lease interests, including city approval requirements and any
associated fees or conditions, shall be clearly defined to ensure orderly transitions. All sales,
assignments, or transfers shall be approved in accordance with the City of Denton Code of
Ordinances.
3. If applicable, conditions for granting rights of first refusal. Rights of first refusal may only be
granted where the property that is subject to the right of first refusal is contiguous to the leased
premises. No right of first refusal may be granted without the payment of a fee or other
financial consideration being provided to the City. Other conditions of the right of first refusal
will be negotiated by Airport staff. The City retains the right to refuse requests for rights of first
refusal.
4. Conditions, procedures, and penalties for defaulting on lease obligations, including notification
requirements and remedies available to the city.
5. Requirements that the Lessee shall be responsible, at its own expense, for connection to and
service of public utilities.
6. Requirements for Lessee insurance coverage, including liability, property, and workers'
compensation insurance, shall be clearly outlined to mitigate risk and protect airport assets.
7. The right of the City to, with notice to the Lessee, inspect the leasehold and improvements for
compliance with lease terms, federal, state, or local law, and/or Airport rules and regulations.
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8. Requirements that ensure construction adheres to local development standards, building codes,
environmental laws, Airport Minimum Operating Standards, and other applicable statutes and
regulations in order to maintain the safety and integrity of airport property
9. Requirements for the Lessee to demonstrate possession of all necessary licenses, certifications,
and permits required for activities permitted under the lease, with provisions for City
verification and periodic updates.
10. Requirements for the Lessee to bear responsibility for the provision of utility service during their
occupancy, including electricity, water, gas, sewage, and telecommunications services, with
provisions for city oversight
11. Requirements for the Lessee to fulfill all tax obligations related to its activities, including
property taxes, sales taxes, and income taxes, under applicable laws and regulations.
12. Requirements for Lessee to maintain accurate records of their operations, including financial
statements, maintenance logs, and regulatory compliance documentation, subject to city audit
and inspection.
13. Guidelines for holdover possession beyond the lease term, including rental adjustments and
termination provisions, shall be established to address transitional periods and prevent
unauthorized occupancy.
14. Any other conditions or requirements deemed appropriate by the City
Section 3.03 Maintenance of the Leasehold
The Lessee shall bear responsibility for ongoing maintenance of the leased premises and all
improvements including, but not limited to, preventing the accumulation of debris and trash, abating fire
and chemical hazards, abatement of nuisances, and the irrigation and maintenance of landscaping. The
Lessee shall perform all work in accordance with applicable laws and regulations.
To prevent the premature aging and deterioration of the improvements, the Lessee, at its own expense,
shall conduct a Condition Assessment (“Assessment”) on all improvements no later than the tenth (10th)
anniversary of the Commencement Date, and every five (5) year anniversary thereafter. The Assessment
shall examine, at minimum, the building’s structural components, electrical, plumbing, heating and
cooling systems, and roof. Additionally, any pavement (asphalt or concrete) within the leasehold area
shall also be examined. The Assessment shall be conducted by a commercial building inspector qualified
to perform such work in the State of Texas who, after being selected by the Lessee, shall be approved in
writing by the City. The Condition Assessment shall be provided to the City within thirty (30) days of the
completion deadline. Any deficiencies that are due to the Lessee’s failure to meet their obligations under
the Lease shall be corrected by the Lessee at its expense. The Lessee shall, within ninety (90) days,
provide to the Lessor a plan to correct such deficiencies identified in the Condition Assessment within
one (1) year, unless extended in writing by the Airport Director, or designee. Failure to correct
deficiencies identified in the Condition Assessment will constitute a breach of the lease agreement.
Section 3.04 Additional Lease Requirements
The Lease shall contain, or adopt by reference, all provisions required by the applicable law, including,
without limitation, regulations promulgated by the FAA and the Transportation Safety Administration,
and assurances or agreements entered into by the City as a condition of any Federal Grant to the City for
the Airport. The Lease or Permit shall be subordinate to any existing or future Federal grant assurances.
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Article IV. Rents, Fees, and Agreement Term
Airport lease rates and associated fees shall be consistent with FAA policy and Grant Assurance
obligations, specifically the requirement that the Airport be as financially self-sustaining as possible and
that leases are provided on a consistent and equitable basis. To the extent feasible, aeronautical use fees
must be established on a cost-recovery basis while the use of Airport property for non-aeronautical
facilities and/or services must be based on fair market value.
Section 4.01 Rent
During the lease term, the Lessee shall pay the Airport market rent for applicable land and facility(ies).
Where a Lessee has constructed a Facility, the Lessee shall pay Market Rent for land only during the Term
of its Lease.
(a) Establishment of Market Rent
Market rent shall be established through a property appraisal by a qualified appraiser, or a
market analysis performed by a similarly qualified individual or firm. No appraisals used to
establish market rent for a property shall have been performed more than two years before the
execution of a lease agreement.
(b) Deviations from Market Rent
Below market rent may only be offered where the Lessee constructs public infrastructure that
benefits other properties (i.e., taxilanes, taxiways, roads, or utilities) or makes improvements to
an existing facility that extends the useful life of the facility, as approved by the City. In such
cases, the value of the reduced rental rate may not exceed the value of the Lessee’s investment
in public infrastructure.
In the event that the City develops all or part of the Improvements, to establish rents the City
may, in its sole discretion, establish a reasonable rate of return on the investment.
Rental rates for certain property uses, particularly non-aeronautical uses, may include a
percentage of Lessee’s gross income relating to its use of the property.
Section 4.02 Adjustment of Rent
To account for regular cost inflation, Lease rents shall be adjusted no later than every two years after the
commencement date of the lease. This adjustment proportion that the then-current United States
Consumer Price Index for all urban consumers (“CPI-U”) for the Dallas-Fort Worth Bureau of Labor
Statistics (1982-84 = 100) bears to that of the Commencement Date month.
Section 4.03 “Through the Fence” Agreements
FAA Grant Assurances require access to the Airport to be provided on an equitable basis. If an adjacent
property requests access to the airport to conduct aeronautical activities, the property owner may be
granted a “Through the Fence Agreement” granting them such access. As a condition of this access, the
property shall pay market rent, including adjustments, under the terms outlined by this policy.
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The City may impose additional requirements as a condition of any “through the fence agreement”
access, and any request for such agreement is subject to review and approval by the City Council.
Section 4.04 Fees
The City shall reserve the right to establish and assess fees to recover the costs being incurred by the
Airport associated with the planning, development, operation (including maintenance and repair),
management, and marketing of the Airport.
Fees may include, but are not limited to, fuel flowage fees, aircraft parking fees, based aircraft fees,
operator permit fees, percentage of gross receipts fees, aircraft landing fees, and/or temporary or special
use permit fees. All fees shall be identified in the City’s rates and fee schedule.
Section 4.05 Lease Term
Lease agreements shall specify the duration of occupancy. The length of a ground lease shall comply
with federal and state regulations and be sufficient for the Lessee to amortize its capital investment into
the leased premises. The lease term will depend on the value of capital invested in the leasehold.
Airport staff shall, based on financial and market conditions, determine the appropriate investment to
warrant a given lease term, considering additional factors such as site conditions, indirect benefits to the
airport, and federal requirements, as applicable.
On a case-by-case basis, the City may consider a significantly longer lease term, still subject to federal
and state regulations, to support Airport property development and allow a Lessee to amortize its
investment, based on the following criteria:
1. Significant initial capital investment beyond the minimum requirements
2. Significant additional capital investment in the current leased property
3. Exceptional or unique services provided to other Airport tenants and users
4. Exceptional job creation and/or impact to the local economy
5. Public infrastructure extension which will benefit other properties (i.e., taxilanes, taxiways,
roads, or utilities)
6. Potential to attract other new aviation businesses or to significantly increase airport revenues
Leases where no capital is invested into the property shall be limited to no more than 3 years.
Section 4.06 Lease Extensions
Extensions to leases shall only be permitted where the following criteria are met:
1. The extensions are at the Lessor's discretion;
2. The extensions are the result of an investment of capital on the premises for new
improvements; or
3. The extensions are the result of an investment of capital in the leased premises that extends the
life of existing improvements.
In cases where an extension is the result of an investment of capital, the extension term shall be
commensurate with the value of the capital investment.
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The City shall require that the rent paid for the term of any lease extension shall reflect the higher of the
then-current rent or the fair market rent at the time of the extension. Rent shall be adjusted through the
term of the extension as permitted within his policy. No extension or extensions may result in the total
lease term extending beyond the statutory limit.
Article V. Reversion of Improvements to the City
Each lease agreement shall require that, at the end of the lease term, Lessees shall surrender all leased
premises to the Airport, including any improvements made during the lease period, unless otherwise
specified in the lease agreement. Lessees may be required to remove any improvements not deemed
necessary for the ongoing operation of the airport, restoring the leased premises to their original
condition at the Lessee's expense.
At the time of the reversion of the leased premises and improvements, the City may at its discretion:
1. Extend the current ground lease or enter into a new lease with the Lessee under the provisions
of this Policy;
2. Enter into a conventional hangar lease at fair market value with a qualified Lessee;
3. Pursue redevelopment of the leasehold; or
4. Take any other action that is in the best interests of the Airport and in compliance with
applicable laws and regulations.
The provision of a lease extension or new lease agreement shall be based on the best long-term financial
interest of the airport. A long-term financial analysis shall be provided to the City Council during any
consideration of a lease extension or new lease agreement under this provision.
Leasing and Development Policy 14
Effective: July 14, 2026
Article VI. Revisions
Revision No. Date Section(s)
Original 10/15/2024 n/a
1 7/14/2026 Multiple