Resolution No. 4624 - Laserfiche WebLink

Home Browse Search

(1) The provisions of the ground lease and the rental payments due under it are reasonable, considering the term of the ground lease, the uses to be made of the property under the ground lease, and then current rental rates for ground leased property in the area; and, (2) The use of the ground leased property will not compete with other activities at the Airport in a way that is likely to reduce the Gross Revenues. (B) The City has entered into ground leases and similar agreements which require the lessee or user to pay rentals or other payments which are below market or nominal in value. These existing transactions shall not be deemed to violate the requirements of this Master Resolution. In addition, the City reserves the right in the future to enter into ground leases and similar agreements which require the lessee or user to pay rentals or other payments which are below market or nominal in value, but only ifno Separate Facility Bonds are issued in connection with the facilities on the affected property, and the City determines that the activities to be conducted on the affected property will benefit the Airport, will not reduce the Gross Revenues substantially below the level the City would otherwise receive, and will not interfere with the ability of the City to comply with Section 4. 7.2 Separate Facility Bonds. The City may allow users of Airport property to finance facilities at the Airport using their own revenues and the revenues of their facilities at the Airport, without securing the financing with the Net Revenues. This Master Resolution permits the City to finance those facilities with Separate Facility Bonds. To permit Separate Facility Bonds the City must enter into a ground lease for the affected Airport property, which requires the user to pay reasonable rentals; rental payments under such a ground lease will be part of the Gross Revenues, but payments made by the user to pay the Separate Facility Bonds will not be part of Gross Revenues. The City may issue Separate Facility Bonds to finance the improvement of Airport property which is subject to a ground lease described in Section 7.1(A). No rentals from a ground lease described in Section 7.1, and no Gross Revenues from any other portion of the Airport may be pledged or used to pay the Separate Facility Bonds. Section 8. General Covenants The City hereby covenants and agrees with the Owners of all Outstanding Bonds as follows: 8.1 Payment of Bonds. That it will promptly cause the principal, premium, if any, and interest on the Bonds to be paid as they become due in accordance with the. provisions of this Master Resolution and any Supplemental Resolution. 8.2 Books and Records. That it will maintain complete books and records relating to the operation of the Airport and all City funds and accounts in accordance with generally accepted accounting principles applicable to the Airport, and will cause such books and records to be audited annually at the end of each Fiscal Year, and an audit report prepared and made available for the inspection of Owners. When this Master Resolution requires that amounts of Gross Revenues, Operating Expenses, Net Revenues and similar revenues or expenses be determined, Page 13 - Resolution March 23, 2000