HomeMy WebLinkAboutAirport Leasing Policy - 2008 .
Renton Municipal Airport
Airport Leasing Policies
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• Renton AirportS
Clayton Scott Field Will Rogers Wiley Post Seaplane Base
616 West Perimeter Road,Renton,Washington 98057
Phone:425-430-7471 Fax: 425-430-7472
Adopted February25,2008
Renton Municipal Airport
Clayton Scott Field
Airport Leasing Policies
Action Taken Date of Action
1 Leasing Policies adopted in Appendix H-1 of the Airport December 12, 2002
Business Plan dated December 5, 2002 as-adopted by the
Mayor and City Council
2 Adopted new Policy 4.2.2.1. and shortened the term February 20, 2006
"Minimum Standards for Commercial Aeronautical
Activities"to "Regulations and Minimum Standards"
3 Added Key Governing Policies to the document, added February 25, 2008
Attachment C Lease/Operating Permit Application Form,
added Section 5.3 Appeals and cleaned up formatting of
sections.
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1. Key Governing Policies for the Airport
The following Key Governing Policies for the Airport were adopted by the Renton City
Council on March 26, 2007.
1.1 Airport operations should be sensitive to neighborhood impacts and should strive to
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minimize those impacts.
1.2 The Airport should be financially self-sustaining.
1.3 The mix of uses at the Airport should operate within the regulatory framework set by
the Federal Aviation Administration.
1.4 The mix of uses at the Airport should contribute to the City's Business Plan goals and
objectives.
2. Statement of Purpose
This Leasing Policy for Renton Municipal Airport is intended to provide guidance for
leasing Airport property and be a guide for City staff on Airport leasing issues. This
policy guide has the following purposes:
2.1. Maintain Renton Municipal Airport in a safe:manner;
2.2. Preserve investment in the Airport;
2.3. Assist the City of Renton in maintaining a fee and rental structure that provides for
financial self-sufficiency for the Airport;
2.4. Provide high-quality leasing procedures following a"best practices" approach;
2.5. Facilitate orderly development and management of the Airport;
2.6. Ensure equal treatment of all current and future tenants and users to make the Airport
available for public use on reasonable terms and those terms required by FAA grants;
2.7. Facilitate and foster good relations with the communities surrounding the Airport;
2.8. Enable conformity with current and future Airport Master and Layout Plans; and
2.9. Ensure compliance with all applicable laws, regulations, policies, guidelines and
requirements related to the City's Federal and State obligations.
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3. General Applicability
If there are any inconsistencies between the Renton Municipal Airport Leasing Policy and
existing property leases, the existing lease shall prevail.
4. Definitions
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 means 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.
Aircraft means 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, when capitalized, means the Renton Municipal Airport, and all of the property,
buildings, facilities and improvements within the exterior boundaries of the Airport as
depicted by the Airport Layout Plan.
Airport Manager means the Chief Administrative Officer or his/her designee who has
direct supervisory and functional responsibility for the operation and maintenance of the
airport.
Commercial aeronautical activity means 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 means a person, fixed base operator, firm, corporation or other entity
conducting commercial aeronautical services or activities at the Airport for compensation
or hire.
Fair market value means an amount in the competitive market that a well-informed and
willing lessor, who desires but is not required to lease, would accept and which a well-
informedi not required to lease, would payfor the use of the
lessee, who desires buts q
Premises, after due consideration of all the elements reasonably affecting value.
Lessee means any person with a lease to occupy space at the Airport.
Regulations and Minimum Standards means the qualifications or criteria, which may
be established, and updated as necessary,by the Airport owner as the minimum
requirements that shall be met by all businesses offering commercial aeronautical
activities for the right to conduct those activities.
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' it
Operating Permit and Agreement means a permit issued by the City to a sublessee
desiring to conduct a commercial aeronautical business, or otherwise construct a building
on the airport for the purposes of aircraft storage.
Permit means administrative approval by the City of Renton to a person or company to
conduct a commercial aeronautical activity, and provide such services, to based and
transient aircraft, only from facilities and locations where such services are authorized.
Person means any individual, firm,partnership,;corporation (including registered non-
profit corporations), company, association,joint-stock association, or governmental entity.
It includes a trustee, receiver, assignee, employee, agent, or similar representative of any
of them.
Sublessee means any person with a sublease to occupy space at the Airport.
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5. Soliciting Interest in Airport Property and the Lease Application
Process
The intent of this section is to illustrate the various options for soliciting interest in
available airport property and the Administrative and Legislative processes involved in
requesting a Lease or Operating Permit from the City. It shall be at the City's discretion,
which of the available options shall apply to the property involved, depending upon what
is in the best interest of the use of airport property.
5.1. Soliciting Interest in Airport Property
The process which the City uses to solicit interested parties in property and/or
building leases may differ depending on the unique circumstances of the leased area.
For example, the City may choose to initiate a Request for Proposal (RFP) on a
specific land area available for leasing. Under the RFP process, the City would
dictate specific development criteria that a development would need to meet in order
to receive consideration. A notice regarding the RFP process would be published in
the newspaper or business journal and existing airport tenants would receive a
courtesy notice. (See Policy 5.12)
The City may also choose to offer a specific land or building available for leasing to
an existing airport tenant (lessee or sublessee), or a specific interested party. The City
may choose this approach when it is deemed to further the development of the airport,
consistent with the Airport Master Plan. (See Policies 5.14, 5.15 and 5.16)
5.2. Obtaining the Lease or Operating Permit
In order to initiate a commercial aeronautical activity at the Renton Municipal
Airport, an applicant must establish a business address on the airport. Land and
buildings may be leased from the City, or subleased from an existing tenant. In the
case of subleasing from an existing tenant, the sublessee must obtain an Operating
Permit from the City.
5.2.1. To obtain a land or building lease or an operating permit(for sublessees) at
Renton Municipal Airport, a person shall submit a written application for review
by the Airport Manager. As a prerequisite to occupancy or the granting of
commercial operating privileges at the Airport, any prospective commercial
tenant must also submit a specific, detailed description of the intended
commercial aeronautical activities, and the means and methods employed to
accomplish the proposed activities. The application shall be on a form provided
by the City of Renton. The Renton Municipal Airport's Regulations and
Minimum Standards contain the minimum application information and should be
referenced prior to initiation of an application.
5.2.2. After receiving an application, the Airport Manager will determine whether the
application as submitted contains the necessary information to continue the
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Cy Attachment C '. If the application is deemed complete,
application process (see pp p ,
and the criteria and requirements set out in these Airport Leasing Policies are
met, the Airport Manager will draft a lease, or operating permit. The City
Attorney will then review the draft lease or operating permit,before submission
to the City Council for approval.
5.2.2.1. Analysis of Lessee's Financial Capacity
The applicant must, at the applicant's expense, obtain a score, as described
below, from a consultant acceptable to the City. The consultant will
evaluate whether the applicant has'the financial capacity to meet the long-
term obligations of a lease of Airport property. The following financial
statements shall be provided directly from the applicant to the consultant:
5.2.2.1.a. Balance sheet and income statement for the current year and two years
prior;
5.2.2.1.b. Projected income statement and business plan if activities at the
Renton Municipal Airport are a new business enterprise for the Lessee;
5.2.2.1.c. Schedule of current debt payments (principal and interest) and lease
obligations (and, if a new enterprise, a schedule of obligations incurred
or to be incurred for the new enterprise);
5.2.2.1.d. A Dunn & Bradstreet credit report on the applicant;
5.2.2.1.e. Any additional information as may be needed to compute the score as
set out in Attachment B
5.2.2.2. Approval of a completed application shall be determined by,but not limited
to, the following criteria to assess the financial capacity of the applicant
lessee:
5.2.2.2.a. Number of years in airport-related activities;
5.2.2.2.b. Airport-related management experience of principal owner/manager;
5.2.2.2.c. Dunn &Bradstreet Credit report/pay history;
5.2.2.2.d. Financial viability of operations;
5.2.2.2.e. Ability to support lease payments from earnings net of cost of
operations, taxes, depreciation%amortization, other debt/lease
obligations;
5.2.2.2.f. Current ratio (current assets divided by current liabilities) of at least
1:1;
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5.2.2.2.g. Debt Service Coverage ratio of at least 1.25;
5.2.2.2.h. Net Worth.
5.2.2.2.i. A credit score of 650 or better.
5.2.2.2.j. The criteria above may be modified as needed to improve the
evaluation of prospective lessees.
5.2.2.3. The above criteria will be evaluated by the Consultant using the rating scale
stated in Attachment B, which may be modified as needed to improve the
evaluation of prospective lessees. An applicant receiving a score of 25-32
shall be eligible for a lease over 5 years. An applicant receiving a score of
17—24 may be considered for a short-term lease. An applicant receiving a
score of 16 and under, or a score of"0" for criteria A or B shall not be
considered for a lease.
5.2.3. After authorization by the Administration, the Airport Manager will initiate the
legislative approval process by drafting an Agenda Bill and scheduling the matter
to be heard at the next available City Council meeting. The City Council may
choose to send the lease or operating permit to the Transportation Committee for
further consideration. The Transportation Committee will recommend approval
or denial of the lease or operating permit to the City Council. The City Council
will then determine whether the lease or operating permit should be approved or
denied, see Attachment A—Lease/Operating Permit Application Process
Flowchart.
5.3. Appeals
An applicant who receives a score of 24 or less, as described in paragraphs 5.2.2.1,
5.2.2.2, and 5.2.2.3, above, may appeal the assigned score to the City Council.
5.3.1. Requirements for Notice of Commencing Appeal
5.3.1.1. Notice of Appeal: Within 14 calendar days of receiving notice from the
Airport Manager of the score described in 5.2.2.1, 5.2.2.2, and 5.2.2.3,
above, the applicant must file with the City Clerk, a written Notice of
Appeal, which shall fully, clearly, and thoroughly specify the grounds for
appeal, guided by the requirements in paragraph 5.3.3,below.
5.3.1.1.a. This document shall be called a Notice of Appeal signed by the
Applicant/Appellant
5.3.1.1.b. For purposes of this subsection, the notice from the Airport Manager
must be in writing and will be deemed received on the date of personal
delivery OR three(3) days from the date said notice is posted in the
United States Mail if delivery is by mail
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5.3.1.1.c. The Notice of Appeal may not contain any factual information that
was not submitted to the Consultant. Any new factual information will
be removed from the Notice of Appeal and will not be considered by
the City Council. The appeal!will be referred to the Transportation
Committee of the City Council for its consideration and
recommendation to the full City Council.
5.3.1.2. Appeal Fee: The Notice of Appeal,shall be accompanied by a fee in the
amount provided for appeals of land use decisions, as described in RMC 4-
1-170A, as that provision is currently worded and as hereafter amended.
5.3.1.3. Facsimile Filing: The required Notice of Appeal may be filed by facsimile.
However, such facsimile filing is subject to the following limitations and
requirements:
5.3.1.3.a. Any facsimile filing received'at the City Clerk's office after five
o'clock(5:00) p.m., on any business day will be deemed to have been
received on the following business day.
5.3.1.3.b. Any facsimile filing receivedlafter five o'clock(5:00)p.m., on the last
date for filing will be considered an untimely filing
5.3.1.3.c. Any party desiring to make a facsimile filing after four o'clock(4:00)
p.m., on the last day for the filing must call the City Clerk's office and
indicate that the filing is being made by facsimile and the number to
which the facsimile copy is being sent. The filing party bears the
burden to ensure that the facsimile filing is transmitted in adequate
time so that it will be completely received by the City before five
o'clock(5:00)p.m.
i
5.3.1.3.d. In all instances in which filing fees are to accompany the filing of an
appeal, those filing fees must be received by the City before the end of
the business day on the last day of the filing period or the filing will be
considered incomplete and will be rejected.
5.3.2. Referral to Committee
The appeal will be referred to the Transportation Committee of the City Council
for its consideration and recommendation to the full City Council
5.3.3. Record on Appeal
5.3.3.1. The Record on Appeal shall consist of the materials submitted to the
Consultant, the City's Airport Leasing Policies, the Renton Municipal
Airport Development Study, and the Notice of Appeal.
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5.3.3.2. No public hearing will be held by the City Council.
5.3.3.3. No new or additional evidence or testimony will be accepted by the City
Council unless a showing is made by the party offering the evidence that the
evidence could not reasonably have been available at the time of the
submissions to the Consultant. If the Council determines that additional
evidence is required, the Council shall remand the matter to the
Administration with directions to submit the new information to the
Consultant for a new analysis.
5.3.3.4. The Applicant/Appellant, as well as a representative of the City, may
submit written arguments based on the record. However, no new evidence
will be permitted in these submissions, except as provided in paragraph
5.3.3.3, above. New evidence submitted that is not in compliance with
paragraph 5.3.3.3, above, shall be removed from these submissions. These
submissions shall become part of the record on appeal.
5.3.4. Standard of Review
It shall be the Applicant/Appellant's burden to show by clear and convincing
evidence that
5.3.4.1. The Consultant committed a substantial error in his/her analysis, OR
5.3.4.2. The information provided to the Consultant shows there is good cause to
refrain from applying one(not more than one) of the criteria in paragraph
5.2.2.2, above, AND the non-application of said criterion will result in (a) a
score of 17 or higher, if the appeal is taken from a score of 16 or lower, or
(b) 25 or higher, if the appeal is taken from a score of 24 or lower.
5.3.4.3. For purposes of this subsection, "good cause" shall mean the application of
the criterion would result in an unreasonable prejudice to this particular
applicant because of this applicant's unique situation that was not created
through any act of the applicant. In no event will "good cause"be found
where the waiver of the criterion would, on balance, be prejudicial to the
interests of the City of Renton or the Renton Municipal Airport, where the
waiver of the criterion would not further the Renton Municipal Airport
Development Plan, or where the waiver of the criterion would cause a
conflict with other Airport Leasing Policies.
5.3.5. Findings and Conclusions Required
If,upon appeal of the score assigned, pursuant to paragraphs 5.2.2.1, 5.2.2.2, and
5.2.2.3, above, and after examination of the record and submissions by the
parties, the Council determines that there is clear and convincing evidence that
the Consultant committed a substantial error, or that good cause exists to refrain
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from applying one(not more than one) of the criteria in paragraph 5.2.2.2, above,
it shall adopt written Findings and Conclusions supported by the record.
5.3.6. Council Action
5.3.6.1. Upon a finding by clear and convincing evidence that the Consultant
committed a substantial error OR that the information provided to the
Consultant showed a good cause to refrain from applying a criterion in
paragraph 5.2.2.2, the Council may approve the lease as follows:
5.3.6.1.a. An appeal from a score of 16,or less may be considered for a short
term lease of less than 5 years.
I
5.3.6.1.b. An appeal from a score of less than 24,but greater than 16, may be
considered for a lease term of 5 years or more.
5.3.6.1.c. The action of the City Council shall be final.
6. General Leasing Policies
6.1. Applicability/Scope
6.1.1. The Effective Date of each section of the Leasing Policies is the date of the
adoption of the Resolution approving the Airport Leasing Policies
6.1.2. The Leasing Policies apply to all leases,ioperating permits and agreements,
extensions, amendments, or assignments of leases, or subleases of such land or
facilities requested or approved after the effective date of the Leasing Policy.
6.2. Use of Premises Policy
6.2.1. The space leased to any lessee may be limited to space demonstrably needed for
the lessee's immediate use. Where facilities must be built or developed, a
reasonable amount of lead-time for such!development shall be negotiated.
6.2.2. In leases, the Use of Premises shall be closely defined to allow intended uses and
to prohibit unintended or impermissible uses.
6.2.3. Changes in use shall not be permitted without the written agreement of the City
Council. Where a facility was leased based on representations that the tenant
would provide specific services identified by the City as serving aeronautical
demand by the public, changes in use shall be disfavored. Permission for other
changes in aeronautical uses shall not be'unreasonably withheld.
6.3. Lease Term Policy for Land
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6.3.1. The base lease term for land leases shall be no longer than 25 years. Longer lease
terms may be negotiated at the time of initiating the lease based on a proven need
for additional years to amortize the investment made on airport property.
6.3.2. All leases shall contain a clause allowing the City to conduct a yearly
maintenance inspection of the property to ensure the facilities are being properly
maintained. If an inspection of the property reveals deficiencies in maintenance
of the facilities, the tenant will be issued a correction notice and a date on which
a re-inspection of the premises will occur. If the next inspection of the property
reveals that the leaseholder has not corrected the deficiencies, the lease will be
terminated.
6.3.3. All new leases will contain a provision requiring the leaseholder conducting a
commercial aeronautical activity, to provide restroom facilities to the flying
public.
6.3.4. Tenants may apply to the City to negotiate a new lease five years prior to the
expiration of the current lease. When the City Council considers the granting of
a new lease, the performance of the existing tenant, conformity to existing
Airport Regulations and Minimum Standards, and provisions of the tenants' lease
requirements will carry significant weight.
6.3.5. Tenants with less than five years left on their current lease may apply to the City
to negotiate a new lease pursuant to the provisions of paragraph 6.3.4. However,
starting on May 1, 2008, if a leaseholder fails to commence renegotiation of a
new lease with the City, the lease shall be terminated at the lease termination
date.
6.4. Lease Term Policy for Buildings
6.4.1. Hangar space leased to aviation businesses for the provision of aircraft
maintenance, fueling or other aviation business activities will be leased for a
period of up to five years with no guaranteed renewal.
6.4.2. If major improvements or maintenance are needed to the City owned facility, the
City Council may choose to offer an increased lease period, consistent with
scheduled private investments in the facility.
6.4.3. After a lessee's building lease term has expired, the City Administration may
suggest to the City Council that the premises should be offered up in an open
public competitive process. The previous tenant may again compete with other
potential tenants for the premises.
6.4.4. If the City Council chooses to retain the existing tenant, the parties will enter into
a negotiation for a new lease.
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6.4.5. Any new lease granted under the paragraph above will be considered, only if the
lessee has met its obligations under the terms of the preceding lease. When the
City Council considers the granting of a new lease, performance of existing
tenant, conformity to existing Airport Regulations and Minimum Standards, and
provisions of the tenants' lease requirements will carry significant weight.
6.5. Rates & Charges Policy
6.5.1. The City will not engage in unjust economic discrimination among tenants, nor
will it impose discriminatory terms. The base ground and/or building lease rate
for each leasehold will be determined based on fair market value. Building base
lease rates will be determined through a current appraisal of the facility by a firm
chosen by the City.
6.5.2. As new ground and building leases are entered into, or leases are amended, the
City Council reserves the right to update lease rates to current values.
6.5.3. The City 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
and kind of the tenant's investment, the value of the business opportunity(for
those providing services to the public), 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.
6.5.4. Rates may be adjusted during the life of a lease. Adjustments shall be of two
types; annual adjustment linked to the CPI for the Seattle-Tacoma-Bremerton
urban area, and five year adjustments based on re-evaluation of property or some
other measure as negotiated.
6.5.5. Land and building rates shall be set to maintain the Airport as a self-sustaining
enterprise fund within the City. Ground and building rates shall be kept
competitive with the rates at other airports in the region.
6.5.6. There shall be no granting of the exclusive right to provide or engage in any
aeronautical activity at the Airport; and rio lease, sublease, operating permit or
other agreement that is or shall be in effect at the Airport shall be construed as
creating such a right.
6.6. Subleasing and Assignments Policy
6.6.1. There shall be no assignments or transfers of leasehold interest, buildings or
facilities on the Airport without the written consent of the City Council. Such
approval shall not be unreasonably withheld.
6.6.2. There shall be no subleases providing space to aeronautical service providers
without an Operating Permit approved by the City Council. All sublessees
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seeking to initiate a commercial activity on the Airport must apply for and obtain
an Operating Permit with the City.
6.6.3. Lessees providing hangar space for private and corporate aircraft storage may do
so without the written consent of the City.
6.6.4. Tenants leasing City-owned and operated hangar or tiedown space may not
sublease their premises, except for short periods of time. Subleasing may only
occur with the written consent of the Airport Manager, under extenuating
circumstances as defined by the City, or as expressly permitted in the lease.
6.7. Reversion Policy
6.7.1. At the end of the Base Term of the lease, the lessee shall quit and surrender the
premises in as good a condition as reasonable use would permit, normal wear and
tear excepted. However, the City Council shall have the option of requiring the
tenant to remove its improvements and return the property to its pre-leased
condition.
6.7.2. Tenants may apply to the City for an extension of the date of reversion of
existing facilities to City ownership as established in the existing lease. There is
no commitment by the City to grant a new lease, or extend the date of reversion.
The City will examine the request and supporting documentation and make a
decision based on the consideration given to the city for the extension as well as
what is best for the City and its citizens and the Airport as a whole, at the City
Council's sole discretion.
6.7.3. For an application to be considered, the tenant must demonstrate that he/she has
made and/or commits to making substantial investments in the leased area and
has maintained the property in good condition under terms of the current lease.
The applicant must show that the length of the requested new lease is needed to
amortize substantial investments (maintenance costs shall not be considered as
investments).
6.8. Standards and Guidance Policy
Lessees and sublessees on the Airport shall be required to comply with all applicable
Airport Regulations and Minimum Standards, located at the Airport Office and City
Clerk's Office. Such Regulations and Minimum Standards may be updated and
revised from time to time as appropriate.
ro riate.
6.9. Termination for Default or Pursuant to Airport Plans
6.9.1. In the event of default by the lessee, the City may, if it so elects, at any time
thereafter, terminate the lease and terms thereof,by giving the lessee, in writing,
a 30-day notice of its intention to do so if the default is not corrected to the
satisfaction of the City.
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•
6.9.2. If the City Council makes a determination, in accordance with the Airport Master
Plan and the FAA-approved Airport Layout Plan, that the leased premises are
needed for Airport development:
6.9.2.1. And where the Lessee has not constructed any permanent facilities on the
premises, the City may offer the Lessee an alternative site if such a site is
available on Airport property. If no alternative site is available OR the
Lessee chooses not to relocate on the Airport, the lease may be terminated
by either party upon 30 days' written notice.
6.9.2.2. And where the Lessee has constructed a permanent facility on the premises,
the City may buy-out the remaining base term of the lease upon 30-days
written notice of the City's intent to do so. The base term buy-out will be
determined by amortizing the construction cost of the improvements on the
premises in a straight-line depreciation of the premises over the base term,
adjusted for inflation based on the region's consumer or construction price
index.
6.10. Conformity with Laws, Ordinances, Rules and Regulations Policy
The lessee shall comply with all applicable local, state and federal laws, ordinances,
rules and regulations, including all rules and regulations of the Federal Aviation
Administration and the State and National Environmental Policy Acts. In addition,
the lessee shall abide by and be subject to all City rules and regulations now in effect
or enacted from time to time concerning the management, operation or use of the
Airport.
6.11. Insurance Requirements Policy
6.11.1. All leases, operating permits and subleases will contain an insurance clause.
6.11.2. All leases, operating permits, and subleases will be subject to periodic
adjustments of insurance requirements as imposed by the City of Renton.
6.11.3. Each lessee shall meet all State of Washington and the City of Renton insurance
requirements and therefore maintain the types and amounts of insurance as
specified in the lease or agreement.
6.12. Policy on Competitive Request for Proposal (RFP) Process
The City maintains the right,but not the duty,' to seek competitive proposals for all
leasehold space at Renton Municipal Airport.'The proposal process will include
public notices and information, and proposal documents will be available to the
public at the Airport Office. All Requests for Proposals will be consistent with
applicable City policies and be reviewed and pevaluated by the City. A fair and
objective evaluation process will be used to select the proposals that best meet the
City's interests based on the criteria listed in the proposal documents. The criteria
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may include, but not be limited to, the priority of uses listed below. The City Council
will grant priority to competing offers for the use of space and/or facilities as follows:
6.12.1. Non-aeronautical uses of aeronautical property are permitted only on an interim
basis, with FAA approval, and with necessary zoning in place. Airport land is
limited, and due to the nature of the Airport Deed and the classifications of land
in the Airport Layout Plan, non-aeronautical uses are likely to be rare.
6.12.2. New through-the-fence use(use that requires access to the Airport over the North
and South Boeing bridges) is not allowed unless specifically approved by the
City Council.
6.12.3. When space becomes available at the Airport, the City Council may issue a
targeted request for proposal (RFP) for specific services or facilities that are
consistent with the most current demand forecast, Airport Business Plan, and
Airport Layout Plan. Responses inconsistent with the scope of the RFP will be
deemed non-responsive.
6.12.4. The City will review and score the proposals and refer the matter to the City
Council for approval.
6.13. Policy on New Leases
The Airport is a mature facility, and the property is largely built out, and it may
happen that demand for aeronautical leasehold facilities exceeds availability.
Oversubscribed facilities will be managed using a process that is fair, transparent and
uniformly applied.
6.13.1. Noncommercial facilities
If there is more demand for more T-hangars and/or tiedowns than can be met,
the City will:
6.13.1.1. For the facilities it owns and operates, maintain a waiting list in order of
application, and offer facilities to those on the waiting list as they become
available; and
6.13.1.2. For facilities owned or operated by others, encourage those owning or
operating said facilities to maintain a waiting list in order of application,
and offer facilities to those on the waiting list as they become available.
6.13.2. Commercial facilities: the City will, where feasible, identify the aviation demand
for services at the Airport and issue focused RFP's for the services needed.
6.14. No Exclusion of Qualified Existing Lessees Policy
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Current lessees shall not be excluded from submitting competitive proposals to the
City.
6.15. Proposal Evaluations Policy
Each Request for Proposal will contain specific information regarding the Airport
property currently being considered. All proposals will include requirements for
detailed information from the respondents regarding the ability of the lessee to use the
property as proposed. For commercial service providers, the required information will
include but not be limited to:
6.15.1. Proposed capital investment;
6.15.2. Qualifications;
6.15.3. Experience in services being offered;
6.15.4. Experience of management personnel;
6.15.5. Proposed services and products; and
6.15.6. Financial ability.
6.16. City Discretion Policy
6.16.1. The City has the discretion to accept the most financially advantageous offer for
a given leasehold.
6.16.2. The City has the discretion to accept a less financially advantageous offer if the
City finds that the proposal furthers the interests of the aeronautical users of the
Airport.
6.16.3. The City has the discretion to require a City ownership interest, in whole or in
part, in certain existing or new facilities. The City's discretion extends to the
choice of such facilities as well as to the Manner in which such ownership is
achieved (e.g. City construction or City acquisition).
6.17. Indemnification Policy
All leases, operating permits and subleases will contain an Indemnification and Hold
Harmless Agreement in a form acceptable to the City Attorney.
6.18. Hazardous Materials
I
All leases, operating permits and subleases will contain a provision, in a form
acceptable to the City Attorney, regarding contribution by lessee/sublessee towards
environmental cleanup of hazardous materialslreleased by lessee or sublessee.
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Attachment A
Lease/Operating Permit Application Process Flow Chart
Airport
Manager drafts
Airport Administration Lease or
Manager advises Operating
determines if Council of Permit if
Application Application is Complete Application was Administration Referred to Council Council
Submitted complete Application complete Legal Review Authorization Committee Decision
fi 'ff -ff liT IT 13-
At least 3 weeks At least 1 week At least 4 weeks At least 2 weeks At least 2
weeks
- '.. Z ,
or applications deemed
lete or infeasible
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Attachment B
Criteria Rating Scale Score
Years in airport-related business No experience 0
Less than 1-2.9 years 1
3-6.9years 2
7— 12 years 3
more than 12 years 4
Airport-related management experience of No experience 0
principal owner/manager Less than 3 years 1
3-6.9years 2
7— 12 years 3
more than 12 years 4
Dunn&Bradstreet Pay history/credit report No credit history 0
Pay History—high risk 1
Pay History—medium risk 2
Pay History—low risk 3
Pay History—low risk and clear credit report(no bankruptcies,judgments,liens,etc.) 4
Viability of operations Cannot demonstrate profitability 0
Losses(net)in all 3 years 1
Profitable(net)in 1 of last 3 years 2
Profitable(net)in 2 of last 3 years 3
Profitable(net)in past 3 years 4
Earnings net of cost of operations,taxes, Net Earnings less than annual lease payment 1
depreciation/amortization,other debt/lease Net Earnings equal to or less than 1.25x annual lease payment 2
obligations (if new enterprise,use projected Net Earnings 1.25-2.0 times over annual lease payment 3
income and obligations) Net Earnings more than 2.0 times over annual lease payment 4
Current ratio Current ratio is less than 1.0x 1
Current ratio is 1.0x— 1.5x 2
Current ratio is 1.6x—2.0x 3
Current ratio is above 2.0x 4
Debt Service Coverage(DSC) DSC is less than 1.0x 1
DSC is 1.0x— 1.5x 2
DSC is 1.6x—2.0x 3
DSC is above 2.0x 4
Net worth Negative net worth 0
Net worth is positive,but less than annual lease payment 1
Net worth is equal to annual lease payment but less than 2x annual lease payment 2
Net worth is 2x—5x annual lease payment 3
Net worth is more than 5x annual lease payment 4
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Attachment C
.(SY 0 Renton Airport
* + Clayton Scott Field
616 W.Perimeter Road—Unit A;Renton, WA 98057
NTO) Phone 425-430-7471/Fax 425-430-7472
AIRPORT LEASE/OPERATING PERMIT APPLICATION FORM
Please read the Airport Leasing Policies and the Airport Regulations and Minimum Standards prior to filling in
this application.
Applicant Name:
Contact Person: �
Phone: Email:
Mailing Address:
Lease Area Location,if known:
Type of Lease(circle all that apply): Ground
Building
Operating Permit(for,subleasing)
If Operating Permit Application,name of Business from whom Subleasing:
Provide a detailed description(Purpose of Use) of the intended commercial aeronautical activities:
Describe the means and methods to accomplish the intended activities:
(Attach additional sheets as'�necessa
rJ'�
i
Credit Score:
Applicant Signature (if sublease, signature of lessee) Date
Airport Manager Signature Date
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