OAR 738-015-0090
Termination of Non-Commercial Aeronautical Lease for Default or Airport Development
(1)
In the event of termination of a non-commercial lease 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 OAR 738-015-0055 (Access Permits) through 738-015-0075 (ODA Review of Application for Non-Commercial Aeronautical Activities); or(b)
Within that same period, Lessee may remove the improvements, at Lessee’s expense, and restore the lease property to their original condition.(2)
In the event of termination by the Department for default by Lessee, Lessee shall pay basic rent for any post-termination occupancy, until another Lessee has entered into a lease with the Department or until the lease property are 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 are 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 Lessee chooses not to relocate, the lease may be terminated by either party.(5)
Upon termination, Lessee shall vacate the lease property upon 120 days written notice by the Department to buy out the remaining base term of the lease.(6)
If Lessee’s lease is not a base term lease, the Department shall not pay compensation for lease termination. If Lessee’s lease was a base term lease, then the Department shall offer to buy out the remaining base term of the lease.(7)
The base term buy-out will be determined by amortizing the construction cost of the hangar (or other improvements) over the base term of the lease, factoring in straight-line depreciation and adjusting for inflation based on ODA’S periodic rental increases. The Department shall purchase each remaining year of the base term according to the amortization/depreciation schedule.
Source:
Rule 738-015-0090 — Termination of Non-Commercial Aeronautical Lease for Default or Airport Development, https://secure.sos.state.or.us/oard/view.action?ruleNumber=738-015-0090.