A. General. This section applies to the lease of airport property, to the exclusion of the provisions of all other sections of this chapter. Airport property may be leased through an application or sealed bid process.
B. Application Process. An applicant desiring to lease airport property shall submit an application to the city. The application shall contain:
1. Name, address and phone number of applicant;
2. Identification of area requested;
3. A description of the activity to be conducted;
4. A scale drawing depicting the proposed development, including but not limited to location, size and height of buildings, identification of materials to be installed on the property, and proposed location of all utility connections. This drawing must show the relationship between the development, the property lines, and any relevant development on adjacent or other properties;
5. If the proposed use is commercial, a written business plan for the activity to be conducted; and
6. Any and all additional information which may be requested by the city.
C. Action On Application. The city shall process applications depending upon use as follows:
1. For private use, such as a hanger or tie-down, where the building is less than 10,000 square feet, and the term of the lease is 10 years or less, the application and lease may be approved by the mayor after administrative review and evaluation.
2. For a small commercial use, where the building is less than 10,000 square feet and the term of the lease is 10 years or less, the application and lease may be approved by the mayor after administrative review and evaluation.
3. For any other use, the application will be reviewed by administration, submitted to the planning commission for review and recommendation, and then submitted to the city council for final action. Private or small commercial use may also be submitted to the planning commission and the city council if, in the opinion of the mayor, such submittal is appropriate under the circumstances.
4. For all uses, the city may accept, reject or place conditions on the acceptance of any application to lease airport property. The city may also require the prepayment by applicant of certain necessary costs such as administrative costs, surveying, subdividing, utility installation, soils testing, etc.
D. Sealed Bid Process. The city council may make specific areas of the airport available for lease for general or specific development through a sealed bid procedure under conditions to be specified by the city council. In this process, the city reserves the right to take into consideration factors other than lease rate, and may award the property to any bidder whose proposal is deemed to be in the best interests of the city, regardless of lease rate proposed. In addition, the city reserves the right to reject any and all bids or proposals.
E. Lease Form. A lease for airport property shall include certain provisions, as follows:
1. A requirement that the use of the property be in accord with the airport development plan, and that the use of the property shall not violate any condition or requirement placed on the property or the airport itself by the city, the state of Alaska, or the Federal Aviation Administration;
2. Lease rate, term, rental adjustment and other provisions that are in accord with the requirements and policy of the Federal Aviation Administration;
3. A provision prohibiting assignment or sublease without the approval of the city; and
4. A provision authorizing the granting of a security interest by the lessee in the leasehold interest for the purpose of securing financing for the construction of improvements on the property.
F. No Warranties. By classifying or leasing airport property, the city expressly does not warrant that the land is suited for the use proposed or authorized under the classification or lease, and no express or implied warranty or guaranty is given as to the present or any future condition of the property or that it shall be profitable to employ the land for the proposed or authorized use. (Prior code § 7.16.125)