OAR 738-015-0030
Termination of Commercial Aeronautical Lease for Default or Airport Development
(1)
In the event of termination of a commercial lease by the Department for default by Lessee, Lessee has two options, either of which must be completed within 120 days of the date of written notice of lease termination:(a)
Lessee may sell the lease improvements to a qualified buyer who is able to enter into a lease with the Department, under the criteria set forth in OAR 738-015-0005 (Leasing Application for Commercial Aeronautical Activities) through 738-015-0015 (ODA Review of Application for Commercial Aeronautical Lease); or(b)
Within that same period, Lessee may remove the improvements, at Lessee’s expense, and restore the lease property to its original condition.(2)
In the event of termination for default by Lessee, Lessee shall pay basic rent for any post-termination occupancy until a new Lessee has entered into a lease agreement with the Department, or until the lease property is restored to their original condition.(3)
If the Department makes a determination, in accordance with the Airport Master Plan and FAA-approved Airport Layout Plan, that the lease property is required for airport development, it shall offer to Lessee an alternative site, if such other suitable space is available on airport property.(4)
If no suitable alternative site is available, or if Lessee chooses not to relocate, either party may terminate the lease.(5)
Upon termination, Lessee shall vacate the lease property within 120 days following ODA’s termination notice.(6)
If Lessee’s lease was a base term lease, the Department shall offer to buy out the remaining base term of the lease. If Lessee’s lease is not a base term lease, then the Department shall not pay compensation for lease termination.(7)
The base term lease buy-out amount shall be determined by amortizing the construction cost of any improvements on the lease property over the base term of the lease, factoring in straight-line depreciation and adjusting for inflation based on the Department’s periodic rental increases. The Department shall purchase each remaining year of the base term of the lease according to the amortization/depreciation schedule.(8)
Upon termination, Lessee shall continue to own all improvements on the lease property, including hangars. The improvements are personal property of the Lessee and must be removed when the Lessee vacates the lease property pursuant to paragraph (5) of this rule.
Source:
Rule 738-015-0030 — Termination of Commercial Aeronautical Lease for Default or Airport Development, https://secure.sos.state.or.us/oard/view.action?ruleNumber=738-015-0030.