From
Elsa Delgado
Title
Revised Standard Terms and Provisions for Monthly Non-Commercial Leases for Airport, T-Hangar, Patio, Tiedown, Portable and Storage Lease Agreements
Presenter
Mark J. Divita, C.M., Airport Director
Recommended Action
Approve
Analysis
On June 20, 2017, the Grand Prairie City Council approved the Airport Rules and Regulations and the 30-Day leases for the T-Hangars and Open Covered (Patio) Hangars.
On June 15, 2016, The Department of Transportation, Federal Aviation Administration (FAA), published in the Federal Register/Vol. 8a, No. 155 File 38906 - Policy on the Non-Aeronautical Use of Airport Hangars. The policy became effective on July 1, 2017. Included in the policy is the requirement that airport hangars be used to house active aircraft, the requirement for a policy to be implemented by airports stating this policy and the actions that would be put into effect to ensure compliance. Penalties for the tenant include a requirement on the part of the airport to increase the rent of a tenant not in compliance with the policy to Fair Market Value or eviction. In the case of airport hangars, the rent would be based on an equivalent size unit at a public storage facility. FAA/TxDOT grant funding for capital improvement projects might be withheld should airports fail to comply with the FAA regulations.
On October 8, 2012, the Grand Prairie City Council approved amendments to the Airport Rules and Regulations and the 30-Day leases for T-Hangars and Open Covered (Patio) Hangars to add a provision clarifying that the Lessor had a possessory lien on the aircraft if the rent remains unpaid.
The revisions to the Non-Commercial leases for T-Hangars, Patio, Tiedown, Portable and Storage Lease agreements clarify the Standard Terms and Provisions between Lessor and Lessee.
Financial Consideration
None.