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a. Current Policy - the current policy does not require ground lease payments. None <br />of the current leases for private hangars in the City of Paris require the payment <br />ground lease payments. <br />b. Survey - almost all of the cities surveyed require the payment of ground lease <br />payments for private hangars. The City has received informal information from <br />those associated with or working with TxDot indicating that future leases should <br />include the requirement for ground lease payments. <br />c. Board Recommendation - the Board recommended a ground lease payment of <br />$.12 per square foot per year, adjusted every five years with a Consumer Price <br />Index adjustment. <br />The City Council must consider whether or not ground lease payments should be <br />charged for future leases, and determine the amount of that lease payment. <br />7. Should the lease place the burden for taxes, if any taxes are due, on the hangar tenant? <br />a. The Current Policy - the current policy is silent on the issue of who would be <br />responsible for taxes, if any taxes are determined to be due. <br />b. Survey - with the exception of one other city and the City of Paris, all the leases <br />for all of the other cities surveyed would place the responsibility for payment of <br />taxes, if any taxes are due, squarely on the tenant. The City Attorney is <br />recommending that a clause be included in the lease to place the tax responsibility <br />on the tenant. <br />The City Council needs to determine whether or not future leases will place the <br />responsibility for taxes on the tenant. <br />8. How much and what insurance should be required? The Cities form lease requires <br />$250,000 personal injury, $500,000 event, $100,000 property damage coverage in <br />each policy. The question is whether or not more extensive insurance coverage, <br />including fire and casualty insurance on the actual hangar should be an obligation of <br />the tenant. <br />a. Current Policy - the current policy is silent on the entire issue of insurance. <br />b. Survey - the amount of insurance required as determined in the survey varies <br />widely among cities. However, it does appear that most of the other cities require <br />either a broader range of insurance, or a higher amount of insurance coverage, or <br />both. <br />-6- <br />