23-Construction of a hangar at Cox Field

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Tenants of hangars which are built by the Tenant as consideration for a long-term ground lease shall be give {lahe ea9et-ofT~et-~onthlyf~ent I rateeforf such hangars shall tbe expiration of the in determined as set out herein. V. TERMS OFLEASES A. Background The City of Paris based this policy on recommendations of the Airport Advisory Board and the results of a study of other airports conducted by the Legal Department and presented in August 2001. The lease terms and rate termination methods have been adopted through a public vote of the City Council of the City of Paris and are herein incorporated. The term of Ground Leases on which the tenant intends to construct improvements begins at 25 years and may be negotiable depending on the size of the hangar. These terms were adopted to encourage development of the Airport and provide sufficient time for investors to amortize their investment. As a practical matter and good business for the City, Lessees and lenders have a reasonable length of time to realize an acceptable rate of return on the project prior to the potential reversion of the improvement to the City. B. Ground Lease Terms Term 25 years 30 years Negotiable New Investment Less than 5,000 square feet. of new hangar, office, and shop space construction 5,001 to 20,000 square feet of new hangar, office, and shop space construction In excess of 20,000 square feet of new hangar, office, and shop space construction All construction should contribute to furthering the City of Paris's Airport Master Plan or Airport development objectives. VI. GROUND LEASES RATES The following is the ground lease rate to each new privately built hangar located at Cox Field Airport: $0.12 per sq. ft. per year, adjusted every five (5) years by an amount equal to the Consumer Price Index (CPI) for the previous five (5) years. Cox Field Airport Lease Policy i 0 C 2 -1. - Page 2