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HomeMy WebLinkAbout400-171 POLICY & PROCEDURE Subject: AIRPORT LANDSIDE LEASING POLICY Index: PUBLIC WORKS - AIRPORT Number: 400-17 Effective Date: 12/19/2019 Supersedes: N/A Page: 1 of 18 Staff Contact: Martin Pastucha Approved By: Resolution No. 4395 1.0 POLICY: See attached Policy adopted on December 9, 2019 by Resolution 4395. 2 Renton Municipal Airport: LANDSIDE LEASING POLICY Renton Airport Clayton Scott Field ~ Will Rogers-Wiley Post Seaplane Base 616 West Perimeter Road-Unit A, Renton, Washington 98057 Phone: 425-430-7471 rentonairport@rentonwa.gov Adopted December 9, 2019 1. Introduction The City of Renton adopts this Landside Leasing Policy for the Renton Municipal Airport to provide guidance on certain leasing issues associated with the use of Airport landside property. 2. Statement of Purpose This Landside Leasing Policy is intended to provide guidance for leasing landside Airport property (property without access to the secured airside portion of the Airport) and be a guide for City staff on the Airport landside leasing issues that are covered by this document. This document is not intended to comprehensively cover all leasing issues for any particular property. 3. General Applicability If there are any inconsistencies between this Landside Leasing Policy and a lease entered into by the City of Renton, the lease shall prevail. 4. Definitions The following words, terms and phrases, when used in this Landside Leasing Policy, shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning: Accessory use or structure means a use or structure (exceeding 120 square feet) subordinate to the principal structure or use which serves a purpose, customarily incidental to the principal use. Berm means a mound of earth used for screening, definition of space, noise attenuation and decoration in landscaping. 3 Buffer means a strip of land established to separate and protect one type of land use from another, to screen from objectionable noise, smoke or visual impact, or to provide for future public improvements or additional open space. Building means any structure built for the shelter or enclosure of persons, animals, chattels, property or substances of an kind (not including fences), having one or more floors and a roof, and permanently affixed to the ground. F.A.R. Part 77 means Federal Aviation Regulations pertaining to height and obstruction criteria within prescribed distances from an airport as these Regulations currently exist and as may be amended from time to time. Part 77 Regulations may also affect lands located outside the boundaries of the Renton Airport. Lot means any development site located within Airport property which is legally described in a lease agreement. Open Space means land utilized for recreational, landscaping and/or buffering purposes. Examples include park lands and landscaping treatments within non- residential developments. Open space credit for non-residential developments shall be given tor treatments such as berms, sodded areas, trees, water features, and decorative rock treatments and, in some case landscaped plazas and atriums. Right-Of-Way means an area or strip of land over which a rite of passage has been recorded for use by vehicles, pedestrians, and/or facilities of a public utility. Setback means a distance from a curb, property line, or structure within which building is prohibited. Setbacks are building restrictions imposed on property owners. Sign means any object or device containing letters, figures and/or other means of communication or part thereof situated outdoors or indoors, of which the effect produced is to advertise, announce, communicate, identify, declare, demonstrate, direct, display, and/or instruct potential users of a use, product and/or service. Structure means anything which is constructed, or the use of which, requires permanent location on the ground, or attachment to something having a permanent location on the ground. Use means the purposes for which land or premises or a building thereon is designed, arranged, or intended, or for which it is or may be occupied. 4 5. Soliciting Interest in Airport Landside Properties and the Lease Application Process 5.1. Initiating the Process to Obtain a Lease or Operating Permit for Airport Landside Property In order to use landside property 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. 5.1.1. 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. 5.1.2. Pre-Submittal Meeting: Applicants are required to schedule a pre-submittal meeting with the Airport’s Business Coordinator, or other member of management as determined by the Airport Manager. This meeting gives the applicant an opportunity to present his/her idea and to discuss available parcels and their designated land use. This also gives the applicant valuable general comments on the feasibility of the idea and an opportunity to identify any potential problems associated with it. The applicant will then be directed to contact all utilities pertaining to the proposed development parcel to obtain written assurances that the provider has the ability to serve the entire development. The written application will be given to the applicant at this point. 5.1.3. Following the required pre-submittal meeting, the Concept Plan and Completed Application should be submitted to the Airport. After receiving an application and Concept Plan, the Airport Manager will determine whether the application, as submitted, contains the necessary information to continue the application process. 5.1.4. If the application is deemed complete and the criteria and requirements set out in this policy are met, the Airport Business Coordinator, or designated member of the Airport Management team will schedule the item for placement on the City of Renton Transportation Committee for a briefing. Prior to this meeting, the applicant must pay the appropriate application fee(s). The applicant may 5 contact the Airport for the current City of Renton Fee Schedule; the Fee Schedule is also available online at https://edocs.rentonwa.gov/Documents/0/edoc/1059222/2017- 2018%20Fee%20Schedule.pdf. 5.1.5. This briefing will give the Transportation Committee an opportunity to review the Concept Plan and address any questions or concerns with Airport Staff. The items listed in this subsection 5.1.5 will be required in the Concept Plan prior to the Transportation Committee meeting. To be considered complete and to be accepted by the Airport Manager for the Transportation Committee briefing, all of the items listed in this section should be organized into five individual packets in order to facilitate the process of providing each Transportation Committee Member information pertaining to the application. 5.1.5.1. Written Narrative: 5.1.5.1.a. Proposed Use; Number of Structure(s); approximate size(s) of unit(s) and approximate maximum height of building(s) in feet; 5.1.5.1.b. Amount and function of proposed open space, whether public or private; 5.1.5.1.c. Plan drawings which include the following minimum information: 5.1.5.1.c.1. Title or name of the development above the term, “Concept Plan”; 5.1.5.1.c.2. Vicinity map, scale, north arrow and date of preparation; 5.1.5.1.c.3. Location and legal description of lot; 5.1.5.1.c.4. Total area of open space; 5.1.5.1.c.5. Location and proposed use(s) of building areas to include range of dimensions and square footage; 5.1.5.1.c.6. Location and dimensions of required building and landscaping setbacks; 5.1.5.1.c.7. Parking area(s), verifiable based upon building square footage; 6 5.1.5.1.c.8. Designation and classification of any right-of- way (fee simple or easements), turning or acceleration and/or deceleration lanes, areas to be vacated, access points including locations and movements allowed (i.e. full turn/right turn only); 5.1.5.1.c.9. Topographic map depicting existing and proposed contours; 5.1.5.1.c.10. Utility drawings depicting existing and proposed locations; 5.1.5.1.c.11. Internal site circulation and designation of public and private streets; 5.1.5.1.c.12. Proposed timetable for Development Plan; 5.1.5.1.c.13. A scale of preferably larger than 1”=500’ for Concept Plan and 1”=400’ for Development Plan; and 5.1.5.1.c.14. Traffic Impact Study. A waiver may be granted for those projects which have little or no traffic impact. 5.1.5.2. Proposed Principal Lease Terms 5.1.5.3. 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. 5.1.5.3.a. The following financial statements shall be provided directly from the applicant to the consultant: 5.1.5.3.a.1. Balance sheet and income statement for the current year and two years prior; 5.1.5.3.a.2. Projected income statement and business plan if activities at the Renton Municipal Airport are a new business enterprise for the lessee; 5.1.5.3.a.3. Schedule of current debt payments (principal and interest) and lease obligation (and, if a new 7 enterprise, a schedule of obligations incurred or to be incurred for the new enterprise); 5.1.5.3.a.4. A Dun & Bradstreet credit report on the applicant, or equivalent report acceptable to the City; 5.1.5.3.a.5. Any additional information as may be needed to compute the score as set out in Attachment A. 5.1.5.3.b. 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: 5.1.5.3.b.1. Dun & Bradstreet credit report/pay history, or equivalent report acceptable to the City; 5.1.5.3.b.2. Financial viability of operations; 5.1.5.3.b.3. Ability to support lease payments from earnings net of cost of operations, taxes, depreciation/amortization, other debt/lease obligations; 5.1.5.3.b.4. Current ratio (current assets divided by current liabilities) of at least 1:1; 5.1.5.3.b.5. Debt Service Coverage ratio of at least 1.25; 5.1.5.3.b.6. Net Worth; 5.1.5.3.b.7. A credit score of 650 or better; 5.1.5.3.b.8. The criteria above may be modified as needed to improve the evaluation of prospective lessees. 5.1.5.3.c. The above criteria will be evaluated by the consultant using the rating scale stated in Attachment A, which may be modified as needed to improve the evaluation of prospective lessees. An applicant receiving a score of 20- 24 shall be eligible for a lease over five years. An applicant receiving a score of 15-19 may be considered for a short- term lease. An applicant receiving a score of 14 and under shall not be considered for a lease. 5.2. Requirements of the Federal Aviation Administration (FAA) Regarding Proposals 8 5.2.1. Since any planned development at Renton Municipal Airport is on property purchased in part with a federal grant, the Airport notifies the FAA regarding any such planned development. FAA Form 7460-1 is the official notification to the FAA of the proposed construction or alteration and the applicant should review the copy included in this Landside Leasing Policy and be ready to provide the information on or about the time submittal is made to the City of Renton for final approval of the Development Plan. 5.2.2. FAA approval must be obtained for projects which would not be considered “aeronautical uses” in accordance with Grant Assurances the Airport agreed to as a condition of accepting federal grants-in-aid. 5.2.3. Possible Obstructions to the Navigable Airspace Part 77 of the Federal Aviation Regulations establishes the maximum allowable heights of objects on or in the vicinity of airports. It does this by definition of “imaginary surfaces” which, if penetrated by an object, would be considered an obstruction. It is unlikely that the Airport would pursue any planned development which would penetrate the Part 77 imaginary surfaces. 5.2.4. Notice of Proposed Construction or Alteration Assuming the project has the support of the Airport, FAA Form 7460-1, Notice of Proposed Construction or Alteration, is submitted by the Airport to the FAA. This form provides the FAA with specific information regarding the project, including the nature of the proposal, the description of the structure(s), the location of the structure(s), and the height and elevation to the nearest foot of both the site and structure(s). 6. General Leasing Policies 6.1. Lease Term Policy for Landside Development The total lease term for landside leases shall be no longer than 50 years or per current FAA guidance. 6.2. Rates & Charges Policy The Airport reserves the right to include in any lease agreement the provision for reasonable and periodic rent increases such as for example, annual flat rate increases. Further, whether or not stated in any lease agreement, the Airport reserves the right to charge and collect fees for Airport security and/or the enforcement of Airport’s rules, regulations, laws, standards, and policies. 6.3. Subleasing and Assignments Policy 9 6.3.1. 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. 6.3.2. There shall be no subleases providing space to aeronautical service providers without an operating permit approved by the City Council. All sublessees seeking to initiate a commercial activity on the Airport must apply for and obtain an operating permit with the City. 6.3.3. Lessees providing hangar space for private and corporate aircraft storage may do so without the written consent of the City. 6.3.4. 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. 6.4. Reversion Policy 6.4.1. 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. 6.4.2. 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. 6.4.3. 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). 6.5. 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 10 Clerk’s Office. Such Regulations and Minimum Standards may be updated and revised from time to time as appropriate. 6.6. Termination for Default or Pursuant to Airport Plans 6.6.1. 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. 6.6.2. 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: 6.6.2.1. 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. 6.6.2.2. 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. 6.7. 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. 6.8. Insurance Requirements Policy 6.8.1. All leases, operating permits and subleases will contain an insurance clause. 6.8.2. All leases, operating permits, and subleases will be subject to periodic adjustments of insurance requirements as imposed by the City of Renton. 11 6.8.3. 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. 6.9. Policy on Competitive Request for Proposal (RFP) Process 6.9.1. 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 evaluated 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 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: 6.9.2. 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. 6.9.3. 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. 6.9.4. 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. 6.9.5. The City will review and score the proposals and refer the matter to the City Council for approval. 6.10. 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. 6.10.1. Noncommercial facilities 12 If there is more demand for more T-hangars and/or tiedowns than can be met, the City will: 6.10.1.1. 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 6.10.1.2. 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. 6.10.2. 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. 6.11. No Exclusion of Qualified Existing Lessees Policy Current lessees shall not be excluded from submitting competitive proposals to the City. 6.12. 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: 6.12.1. Proposed capital investment; 6.12.2. Qualifications; 6.12.3. Experience in services being offered; 6.12.4. Experience of management personnel; 6.12.5. Proposed services and products; and 6.12.6. Financial ability. 6.13. City Discretion Policy 6.13.1. The City has the discretion to accept the most financially advantageous offer for a given leasehold. 13 6.13.2. 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. 6.13.3. 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). 6.14. Indemnification Policy All leases, operating permits and subleases will contain an Indemnification and hold harmless agreement in a form acceptable to the City Attorney. 6.15. Hazardous Materials 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 materials released by lessee or sublessee. 7. Design Criteria 7.1. Codes All construction, alteration, moving, demolition, repair, and use of any building or structure within a lot will be subject to the provisions of the appropriate City of Renton Building Code and any other applicable code or ordinance. 7.2. Site Grading and Drainage In order to establish compatible grading and drainage relationships between buildings, parking and adjacent properties and to control drainage and erosion: 7.2.1. A site plan indicating proposed grading and drainage must be approved by the City of Renton before any construction is initiated; 7.2.2. Any grades, beaus, channels, and swales should be an integral part of the grading paved surface design; 7.2.3. Paved area grades shall not exceed two percent slope and shall not be less than one half of one percent slope; 7.2.4. Drainage facilities and structures shall be designed and maintained to accommodate all storm water generated by the lot in accordance with RMC 4-6- 030 Drainage (Surface Water) Standards. These requirements may be updated as 14 necessary. Routine inspections and maintenance provoked by said inspections shall be coordinated through the City of Renton. 7.3. Erosion Prevention during Construction Permanent and temporary erosion control measures for each parcel governed by this document will be designed, constructed and maintain in conformance with RMC 4-6-030 Drainage (Surface Water) Standards. These requirements may be updated as necessary. 7.4. Lot Aesthetics In order to create a compatible and continuous relationship between site landscape areas and the adjacent lots; to maintain a pleasant appearance in all areas not covered by building or parking; and to enhance the existing character of the lot: 7.4.1. A landscape irrigation layout covering the area not occupied by building structures or pavement must be submitted to the Airport; 7.4.2. Landscaping in accordance with the plans submitted must be installed before occupancy of the building. If seasonal conditions do not permit planting, interim erosion control must be approved by the Airport in writing; 7.4.3. Plant materials must be approved by the Airport; 7.4.4. All parking areas which front on a street should be screened by a landscaped berm of a maximum height of three feet as measured from the adjacent parking lot surface. Berm slopes must not exceed 2:1 with a three-foot wide flat crown; 7.4.5. Landscaping within the public right-of-way shall conform with City of Renton guidelines. 7.5. Buffers and Fences In order to provide security and a visual buffer of unsightly areas such as storage and parking areas: 7.5.1. No fence or wall of any kind shall be constructed unless specifically approved by the Airport in writing; 7.5.2. Objects such as water towers, storage tanks, processing equipment, cooling towers, communication towers, vents, and any other structures or equipment shall be architecturally compatible or effectively shielded from view from any street and shall be approved, in writing, by the Airport before construction or erection of said structures or equipment; 15 7.5.3. Screening fences and buffer areas shall be of a height at least equal to that of the material or equipment being stored. 7.6. Loading and Service In order to provide a functional and aesthetically pleasing method of handling loading and service areas and vehicles: 7.6.1. All loading and unloading of vehicles should be conducted on each lot; 7.6.2. Loading areas, loading docks, parking areas, and service areas should be planned so that one use does not interfere with another; 7.6.3. No loading docks or service areas shall be visible from the street. Use of landscaped buffer is recommended. 7.7. Pedestrian Circulation In order to allow for safe and convenient movement of pedestrians throughout the lot and improvements: 7.7.1. A Sidewalk of five-foot minimum width shall be included; 7.7.2. Convenient pedestrian access shall be provided from all parking areas to building entrances. 7.8. Exterior Lighting In order to create a functional, pleasing, and coordinated relationship of lighting, signs, and plant material for aesthetics, security and safety: 7.8.1. A lighting plan describing the exterior illumination layout and fixture selection must be approved by the Airport in writing prior to construction; 7.8.2. Lights shall not be placed to cause glare or excessive light spillage on neighboring sites; 7.8.3. All parking lot and driveway lighting should provide relatively uniform illumination. Accent illumination is recommended at key points such as entrances, exits, loading zones and drives; 7.8.4. Concealed light sources are recommended; 7.8.5. Security light sources shall be kept in operation all night; 7.8.6. Lighting placement and strength should not interfere with or hinder aircraft movement or traffic; 16 7.8.7. Exterior lighting fixtures must be approved by the Airport. 7.9. Maintenance In accordance with a lease agreement and in order to ensure that all facilities are maintained in a neat and orderly manner: 7.9.1. Each lessee shall maintain its buildings, landscaping, drives, parking lots, or other improvements located upon the lot in good an sufficient repair, and shall keep such premises painted, lawns cut, shrubbery trimmed, windows glazed and otherwise maintain the lot and improvements in an aesthetically pleasing and first-class manner; 7.9.2. Any improvements, planting, driveway, or parking lot surface which are damaged by the elements, by vehicles, fire, or any other cause shall be repaired as promptly as the extent of damage will permit; 7.9.3. Buildings which are vacant for any reason shall be kept locked, windows shall be glazed in order to prevent entrance by vandals, and maintenance shall continue as if occupied; 7.9.4. Grounds shall be maintained in a safe, clean and neat condition free of rubbish and weeds. Lawns shall be kept in a mowed condition. Roads and pavements shall be kept true to line and grade and good repair. Drainage gutters or basins shall be kept clean and free of any obstacles. Fences shall be maintained in good condition. Damage to plantings created by vandalism, automobile, or acts of nature shall be corrected within 30 days. Undeveloped areas for future use or expansion shall be maintained in a ground cover specified in the planting list and trimmed and mowed only as necessary to ensure a neat appearance. Irrigation of undeveloped areas is not required; 7.10. Buildings 7.10.1. No building may penetrate any surface as defined in F.A.R. Part 77; 7.10.2. Exterior building materials must be compatible with adjacent buildings and shall not affect aircraft operations. As a general rule, reflective glass and other materials will not be approved; 7.10.3. All exterior storage and service areas shall be screened by landscaping or architectural fencing. All trash shall be kept in enclosed, covered containers and screened from view; 7.10.4. No mobile home, temporary office, or storage shed shall be installed or maintained on a lot without specific written approval from the Airport for a specified period of time; 17 7.10.5. No building, or any use of a building, will be permitted on any lot that adversely affects another lot, the Airport, or violates a law of the United States, the State of Washington, the City of Renton or any minimum standards set forth by the Airport. 7.11. Storage Areas In order to shield stored materials from public view 7.11.1. No articles, goods, materials, machinery, equipment, plants, animals or similar items should be stored or kept in the open, or exposed to public view, within the area between building setback line and line along the street; 7.11.2. No outside storage or operations of any kind shall be permitted on any lot, unless such activity is visually screened from the street in a manner approved by the Airport. No outside storage shall extend above the top of such screening; 7.11.3. Any article, good, or material to be stored other than in an enclosed covered building shall be enclosed either with an architectural screen fence at least six feet in height or landscaped planting or both as directed and approved by the Airport; 7.11.4. No storage shed or peripheral buildings other than the main building on each lot shall be permitted except during construction or as may be approved for special use. 8. Final Approval Process After authorization by the Administration, the Airport Manager will initiate the final legislative approval process by drafting an Agenda Bill (including the proposed lease) and scheduling the matter to be heard at the next available City Council meeting. The City Council typically sends the lease or operating permit to the Transportation Committee for further consideration where the Transportation Committee recommends approval or denial of the lease or operating permit to the City Council. The City Council makes the final determination whether the lease or operating permit should be approved or denied. Attachment A Criteria Rating Scale Score Dun & Bradstreet Pay history/credit report, or No credit history 0 equivalent report acceptable to the City 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 Net Earnings equal to or less than 1.25x annual lease payment 2 debt/lease obligations (if new enterprise, Net Earnings 1.25-2.0x annual lease payment 3 use projected income and obligations) Net Earnings more than 2.0x 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 2 annual lease payment Net worth is 2x – 5x annual lease payment 3 Net worth is more than 5x annual lease payment 4