Grant Assurance 38, Hangar Construction, sets out the FAA`s expectation in this regard: “If the owner or operator of the airport and a person owning an aircraft agree that a hangar for the aircraft is to be built at the airport at the expense of the owner of the aircraft, the owner or operator of the airport shall grant the owner of the aircraft a long-term lease agreement subject to the conditions of the hangar, such as the owner or operator of the airport. They can prescribe it. » Are reversibility clauses applicable? In the vast majority of succession contracts verified by the AOPA Legal Service Plan, yes. Succession contracts are contracts to which the owner of the airport and hangar is a party. Assuming that the contract of succession is a contract in force in accordance with the laws of the State in force, it is likely that the recurrence clause is applicable. The FAA explains that in these cases, “the duration of the lease will likely exceed the useful life of the structures built on the land.” The number and length of renewal options can help meet the minimum number of years required to finance the hangar. However, meet any notification conditions or requirements that must be met to exercise these renewal options. And most importantly, remember that if the lease doesn`t explicitly offer a renewal option, there isn`t one – and any extension is left to the sole discretion of the owner. It should be noted that, in some cases, the reversibility clause may provide for an option (or requirement) for the removal of the shed at the end of the lease and the restoration of the original to its original condition – until new grasses are added – at the expense of the hangar owner.
Airport Ground Lease Agreement
This entry was posted in Uncategorized. Bookmark the permalink.