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Not for Sale

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16 Guidebook for Developing and Leasing Airport Property themselves seems to be a common culprit or contributing factor when disputes arise. The most successful lease agreements leave few open issues to dispute or misinterpret. The following sections provide an overview of the core elements that must be included in a lease to ensure that all parties are in agreement and have the same understanding of the contract into which they are entering. 2.2.1 Lessor The lessor is the owner of a property that is being leased. In other words, the lessor is the land- lord. In the case of airport leases, the lessor is the airport sponsor or controlling agency with authority to enter into contractual agreements on behalf of the airport sponsor. For any lease agreement, the lease document must contain the names, addresses, and signatures of all parties involved in the agreement and, more specifically, the individuals authorized to execute agreements and obligate the owner/lessor and the tenant/lessee. 2.2.2 Lessee The lessee is the person or business entity that leases the property or facility from the owner. Simply stated, the lessee is the tenant. In the case of a sublease agreement, the lessee is the tenant of the primary lease holder; the airport sponsor does not have a direct lessor-lessee agreement with the sublease tenant. If the lessee is a commercial enterprise, the tenant's representative, or contact person, may wish to be identified in the lease parties section. Also, if the eventual tenant of the facility is to operate under a different name than the signatory of the lease, as in a "doing business as" (dba) arrangement, the dba entity must be identified as well. Provision for notification of changes by the lessee, such as moving offices or changing primary contact information, is also important, to ensure consistent communication between the parties. 2.2.3 Premises The premises element of a lease agreement defines the land and improve- ments that, in total, constitute the property subject to the lease agreement. The developer of a commercial The definition of the premises will include a description of the land to be airport property may seek a longer leased (including square footage, boundaries, and access), a detailed inventory lease term to ensure they recoup of improvements and equipment to be covered in the lease, and a statement their facility investment. Ted of the general condition of the leasehold improvements (if applicable). Stevens Anchorage International A graphic representation of the leasehold, either a site map, airport layout Airport was able to effectively plan (ALP) or aerial photograph, as well as a photograph and/or graphic lengthen the lease term for the depiction of any leasehold improvements (if available) should be added as an Lynxs Group, the developer of the "Exhibit(s)" included within the lease agreement. The exhibit should clearly Alaska CargoPort, with the inclu- demarcate the land, facilities, or other leasehold features that are subject to sion of four 5-year lease extension the lease agreement. options. The Airport was limited to a 35-year lease term by state regulation, which would not have 2.2.4 Use of Premises met the needs of the developer. The lease should assure that the land is being leased for a specific purpose Through the addition of the lease and that development is conducted in accordance with a specific site plan. extension options, the Airport was The "use of premises element" of a lease agreement will specifically state the able to guarantee Lynxs 55-year activities that can and cannot be performed within any given leasehold. A occupancy of the CargoPort. hangar lease will typically forbid commercial activity from taking place at a private hangar and may limit what can be stored in the hangar. FBO and