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Not for Sale



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Non-Aviation Development 69 9.1.6 Solicitation Process Airports vary in their approach to soliciting developers. Some airports are required by local statute or policy to undertake a formal solicitation process, typically a Request for Proposals. Those not so required report being more likely to use a formalized process when seeking a mas- ter developer or when they believe there to be multiple developers interested in the transaction. Whether or not they use a formalized process, successful airports report value in continuingly marketing their opportunities and have established website pages on their airport websites as recent additions to their marketing profile. They have developed standard leases negotiated with individual developers on a first-come-first served basis. Again, the development of standard lease forms has been an evolutionary process for most airports as their market players, developers, lenders and tenants, and staffs and governing bodies gain confidence and understanding. 9.1.7 Site Development Standards The agreement should contain specifications for the review of designs by the airport and adherence to airport design standards--as may be modified for the commercial use. The lease should also require compliance with the notice and review process of Part 77 and a requirement to comply with any recommendations by the FAA in order to avoid the obstruction of air space. 9.1.8 Environmental Provisions Airports must comply with federal, state, and local environmental laws and regulations and must incorporate requirements in their development leases. Although specific provisions vary by locale, common to any development lease are provisions to require baseline and concluding assessments, the right of the owner to inspect for environmental compliance during the lease term, inspections by the owner and to outline responsibilities for indemnification, liability and insurance. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the DFW and MIA Development Agreement for example of comprehensive envi- ronmental provisions. 9.2 M/W/D/BE Participation Airports have included requirements for participation in development projects by minority, woman and/or disadvantaged business enterprises. This participation may be in the form of the purchase of areas of goods and services or more conventional requirements with respect to construction. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the DFW and PIT Development Agreements for example of provisions relating to minority and disadvantaged business enterprise participation. 9.3 FAA Compliance Finally, airports are required under the Airport Compliance Handbook--FAA Order 5190.6A-AGL600 to include provisions in their ground leases for the lessee to acknowledge that the airport's purpose is primarily that of accommodating civil aviation and, as such, the

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70 Guidebook for Developing and Managing Airport Contracts lessee's rights to use the property for the (non-aviation) purposes set forth in the lease are sub- ordinate to and must not interfere with that primary purpose. The agreement should also reserve the airport's right to further develop or improve the landing areas of the airport as it sees fit with- out obligation to maintain and repair any particular portion of the facilities and aviation right-of- ways and otherwise preserve the airport's right of flight for the passage of aircraft in the airspace above the surface of the leased premises. Lessee must agree not to use the leased premises in a manner that interferes with the landing and taking off of aircraft. See CRP-CD-81 (enclosed herein), Appendix to Chapter 9, Non-Aviation Development, for excerpts from the PIT and MIA Development Agreements for examples of provisions requiring compliance with FAA requirements for leases.