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terms and rate termination methods have been adopted through a public vote of the City Council of the <br />City of Paris and are herein incorporated. <br />The term of Ground Leases on which the tenant intends to construct improvements begins at 40 years <br />and may be renegotiable every 5 years. These terms were adopted to encourage development of the <br />Airport and provide sufficient time for investors to amortize their investment. <br />As a practical matter and good business for the City, Lessees and lenders have a reasonable length of <br />time to realize an acceptable rate of return on the project prior to the potential reversion of the <br />improvement to the City. <br />B. Transferability <br />The ground lease will be transferable providing the lessor and lessees approved and the new lessee <br />assumes all responsibility and the lease agreement. Lessee agrees to pay the City of Paris, Texas, as <br />lessor as rental for the use and occupancy of the leased premises and for then privileges, rights, uses <br />and interest as above set forth accounting to the following. <br />All construction should contribute to furthering the City of Paris's Airport Master Plan or Airport <br />development objectives. <br />VI. GROUND LEASES RATES <br />The following is the ground lease rate to each new privately built hangar located at Cox Field Airport: <br />$0.20 per sq. ft. per year, adjusted every five (5) years by an amount equal to the Consumer <br />Price Index (CPI) for the previous five (5) years. <br />All leases shall have a five (5) year CPI clause. <br />VII. MAINTENANCE: GOOD CONDITION & REPAIR <br />Requiring a tenant to maintain property and facilities in good condition and repair, while always <br />important, becomes critical as end of long -term leases approaches. Securing title to leasehold <br />improvements at the expiration of a lease is of little value to the City or Airport if the improvements are <br />not representative of Airport standards or suitable for lease to a desirable tenant at rates meeting <br />Airport expectations. Particular attention should be focused on major cost issues such as foundations, <br />structural components of buildings, roofs, wall systems, hangar doors, electrical systems, etc. Sheet <br />metal roofs and walls should be maintained to be free from leaks and significant damage and should be <br />painted as necessary to prevent and retard rusting and to enhance appearance as original finishes <br />deteriorate. Painting, carpeting, and other similar items are typical of maintenance and lease expenses <br />expected of tenants. Good maintenance is an annual, on -going obligation. Any level of clutter, junky or <br />unkempt appearance will not be tolerated. <br />VIII. ENVIRONMENTAL CONDITION OF LEASEHOLD <br />