AGENDA

Transportation Committee Regular Meeting 4:00 PM - Monday, December 9, 2019

Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way

1. Leasing Policies a) AB - 2483 Transportation Systems Division recommends approval of Landside Leasing Policies that will provide guidance specific to the leasing of Airport property parcels that do not directly connect to the taxiways.

2. Emerging Issues in Transportation

AGENDA ITEM #1. a) AB - 2483

City Council Regular Meeting - 18 Nov 2019

SUBJECT/TITLE: Renton Municipal Airport Landside Leasing Policies RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee DEPARTMENT: Transportation Systems Division STAFF CONTACT: Casey Boatman, Airport Business Coordinator EXT.: 7478

FISCAL IMPACT SUMMARY: The Landside Leasing Policies have no fiscal impact. SUMMARY OF ACTION: The City adopted the Airport Leasing Policy in December 2002 under the Airport Business Plan to guide the City and applicants through the Airport leasing process. A Landside Leasing Policy has been written to provide guidance specific to the leasing of Airport landside property (parcels not directly connected to the taxiways). The guidance includes:

1. Definitions specific to landside properties (Section 4). 2. Requirements specific to soliciting interest in Airport landside property (Section 5). 3. Requirements for a written narrative of proposed use (Section 5). 4. Federal Aviation Administration (FAA) requirements guiding landside proposals for non-aeronautical use (Section 6). 5. Lease terms, rates and charges specific to landside development (Section 6). 6. Design criteria specific to landside properties (Section 7). 7. Final approval process specific to landside properties (Section 8). EXHIBITS: A. Renton Municipal Airport Landside Leasing Policies B. Renton Municipal Airport Leasing Policies C. Resolution STAFF RECOMMENDATION: Approve the Landside Leasing Policies and adopt the Resolution to add the policies into the Renton Municipal Airport Leasing Policies. AGENDA ITEM #1. a)

Renton Municipal Airport: LANDSIDE LEASING POLICIES

Renton Airport Clayton Scott Field ” Will Rogers—Wi|eyPost Seaplane Base 616 West Perimeter Road—UnitA, Renton, 98057 Phone: 425-430-7471 [email protected]

1. Introduction

The City of Renton adopts this Landside Leasing Policy for the Renton Municipal Airport to provide guidance on certain leasing issues associated with the use of Airport landside property.

2. Statement of Purpose

This Landside Leasing Policy is intended to provide guidance for leasing landside Airport property (property without access to the secured airside portion ofthe Airport) and be a guide for City staff on the Airport landside leasing issues that are covered by this document. This document is not intended to comprehensively cover all leasing issues for any particular property.

3. General Applicability

Ifthere are any inconsistencies between this Landside Leasing Policy and a lease entered into by the City of Renton, the lease shall prevail.

4. Definitions

The following words, terms and phrases, when used in this Landside Leasing Policy, shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning:

Accessory use or structure means a use or structure (exceeding 120 square feet) subordinate to the principal structure or use which serves a purpose, customarily incidental to the principal use.

Berm means a mound of earth used for screening, definition of space, noise attenuation and decoration in landscaping. AGENDA ITEM #1. a)

Buffer means a strip of land established to separate and protect one type of land use from another, to screen from objectionable noise, smoke or visual impact, or to provide for future public improvements or additional open space.

Building means any structure built for the shelter or enclosure of persons, animals, chattels, property or substances of an kind (not including fences), having one or more floors and a roof, and permanently affixed to the ground.

F.A.R. Part 77 means Federal Aviation Regulations pertaining to height and obstruction criteria within prescribed distances from an airport as these Regulations currently exist and as may be amended from time to time. Part 77 Regulations may also affect lands located outside the boundaries of the Renton Airport.

Lot means any development site located within Airport property which is legally described in a lease agreement.

Open Space means land utilized for recreational, landscaping and/orbuffering purposes. Examples include park lands and landscaping treatments within non- residential developments. Open space credit for non-residential developments shall be given tor treatments such as berms, sodded areas, trees, water features, and decorative rock treatments and, in some case landscaped plazas and atriums.

Right-Of-Way means an area or strip of land over which a rite of passage has been recorded for use by vehicles, pedestrians, and/orfacilities of a public utility.

Setback means a distance from a curb, property line, or structure within which building is prohibited. Setbacks are building restrictions imposed on property owners.

Signs means any object or device containing letters, figures and/orother means of communication or part thereof situated outdoors or indoors, of which the effect produced is to advertise, announce, communicate, identify, declare, demonstrate, direct, display, and/orinstruct potential users of a use, product and/orservice.

Structure means anything which is constructed, or the use of which, requires permanent location on the ground, or attachment to something having a permanent location on the ground.

Use means the purposes for which land or premises or a building thereon is designed, arranged, or intended, or for which it is or may be occupied. AGENDA ITEM #1. a)

5. Soliciting Interest in Airport Landside Properties and the Lease Application Process

5.1. Initiating the Process to Obtain a Lease or Operating Permit for Airport Landside Property

In order to use Iandside property at the Renton Municipal Airport, an applicant must establish a business address on the airport. Land and buildings may be leased from the City, or subleased from an existing tenant. In the case of subleasing from an existing tenant, the sublessee must obtain an Operating Permit from the City.

5.1.1. To obtain a land or building lease or an operating permit (for sublessees) at Renton Municipal Airport, a person shall submit a written application for review by the Airport Manager. As a prerequisite to occupancy, or the granting of commercial operating privileges at the Airport, any prospective commercial tenant must also submit a specific, detailed description ofthe intended commercial aeronautical activities and the means and methods employed to accomplish the proposed activities. The application shall be on a form provided by the City of Renton. The Renton Municipal Airport's Regulations and Minimum Standards contain the minimum application information and should be referenced prior to initiation of an application. 5.1.2. Pre-Submittal Meeting: Applicants are required to schedule a pre-submittal meeting with the Airport's Business Coordinator, or other member of management as determined by the Airport Manager. This meeting gives the applicant an opportunity to present his/heridea and to discuss available parcels and their designated land use. This also gives the applicant valuable general comments on the feasibility of the idea and an opportunity to identify any potential problems associated with it. The applicant willthen be directed to contact all utilities pertaining to the proposed development parcel to obtain

‘ written assurances that the provider has the ability to serve the entire development. The written application will be given to the applicant at this point.

5.1.3. Following the required pre-submittal meeting, the Concept Plan and Completed Application should be submitted to the Airport. After receiving an application and Concept Plan, the Airport Manager will determine whether the application, as submitted, contains the necessary information to continue the application process.

5.1.4. Ifthe application is deemed complete and the criteria and requirements set out in this Supplement are met, the Airport Business Coordinator, or designated member of the Airport Management team will schedule the item for placement on the City of Renton Transportation Committee for a briefing. AGENDA ITEM #1. a)

Prior to this meeting, the applicant must pay the appropriate application feels). The applicant may contact the Airport for the current City of Renton Fee Schedule; the Fee Schedule is also available online at https:[/edocs.rentonwa.gov/Documents/O/edoc/1059222/2017- 2018%20Fee%2OSchedule.pdf.

5.1.5. This briefing will give the Transportation Committee an opportunity to review the Concept Plan and address any questions or concerns with Airport Staff. The following items will be required in the Concept Plan prior to the Transportation Committee meeting:

To be considered complete and to be accepted by the Airport Manager for the Transportation Committee briefing, all of the items listed in this section should be organized into 5 individual packets in order to facilitate the process of providing each Transportation Committee Member information pertaining to the application: 5.1.5.1. Written Narrative: 5.1.5.1.a. Proposed Use

Number of Structure(s); approximate size(s) of unit(s) and approximate maximum height of bui|ding(s) in feet; 5.1.5.1.b. Amount and function of proposed opens space, whether public or private;

5.1.5.1.c. Plan drawings which include the following minimum information;

5.2.5.1.c.1 Title or name of the development above the term, ”Concept Plan”, 5.2.5.1.c.2 Vicinity map, scale, north arrow and date of preparation, 5.Z.5.1.c.3 Location and legal description of lot, 5.2.5.1.c.4 Total area ofopen space, 5.2.5.1.c.5 Location and proposed use(s) of building areas to include range of dimensions and square footage, 5.2.5.1.c.6 Location and dimensions of required building and landscaping setbacks, as described within these Guidelines, 5.2.5.1.c.7 Parking area(s), verifiable based upon building square footage, 5.2.5.1.c.8 Designation and classification of any right-of-way (fee simple or easements), turning or acceleration and/ordeceleration lanes, areas to be vacated, access points including locations and movements allowed (i.e. full turn/right turn only), 5.2.5.1.c.9 Topographic map depicting existing and proposed contours, 5.2.5.1.c.10 Utility drawings depicting existing and proposed locations, AGENDA ITEM #1. a)

5.2.5.1.c.11 Internal site circulation and designation of public and private streets, 5.Z.5.1.c.12 Proposed timetable for development plan, 5.2.5.1.c.13 A scale of preferably larger than 1”=500’for concept plan and 1”=400’for development plan, 5.2.5.1.c.14 Traffic Impact Study. A waiver may be granted for those projects which have little or no traffic impact. 5.1.5.2. Proposed Principal Lease Terms 5.1.5.3. Analysis of Lessee’s Financial Capacity

5.2 Requirements of the Federal Aviation Administration (FAA)Regarding Proposals.

5.2.1. Since any planned development at Renton Municipal Airport is on property purchased in part with a federal grant, the Airport notifies the FAAregarding any such planned development. FAA Form 7460-1 is the official notification to the FAAof the proposed construction or alteration and the applicant should review the copy included in this Landside Leasing Policy and be ready to provide the information on or about the time submittal is made to the City of Renton for final approval of the Development Plan.

5.2.2. FAAapproval must be obtained for projects which would not be considered ”aeronautica| uses” in accordance with Grant Assurances the Airport agreed to as a condition of accepting federal grants-in-aid.

5.2.3 Possible Obstructions to the Navigable Airspace Part 77 of the Federal Aviation Regulations establishes the maximum allowable heights of objects on or in the vicinity of . It does this by definition of ”imaginary surfaces” which, if penetrated by an object, would be considered an obstruction. It is unlikelythat the Airport would pursue any planned development which would penetrate the Part 77 imaginary surfaces.

5.2.4 Notice of Proposed Construction or Alteration. Assuming the project has the support of the Airport, FAA Form 7460-1, Notice of Proposed Construction or Alteration (a non-negotiable example is provided in these guidelines), is submitted by the Airport to the FAA.This form provides the FAAwith specific information regarding the project, including the nature of the proposal, the description of the structure(s), the location of the structure(s), and the height and elevation to the nearest foot of both the site and structure(s).

6. General Leasing Policies

6.1. Lease Term Policy for Landside Development AGENDA ITEM #1. a)

The total lease term for landside leases shall be no longer than 50 years or per current FAAguidance.

6.2. Rates & Charges Policy The Airport reserves the right to include in any lease agreement the provision for reasonable and periodic rent increases such as for example, annual flat rate increases. Further, whether or not stated in any lease agreement, the Airport reserves the right to charge and collect fees for Airport security and/orthe enforcement of Airport's rules, regulations, laws, standards, and policies.

6.3. Subleasing and Assignments Policy

6.3.1. There shall be no assignments or transfers of leasehold interest, buildings or facilities on the Airport without the written consent of the City Council. Such approval shall not be unreasonably withheld.

6.3.2. There shall be no subleases providing space to aeronautical service providers without an Operating Permit approved by the City Council. Allsublessees seeking to initiate a commercial activity on the Airport must apply for and obtain an Operating Permit with the City.

6.3.3. Lessees providing hangar space for private and corporate aircraft storage may do so without the written consent of the City.

6.3.4. Tenants leasing City-owned and operated hangar or tiedown space may not sublease their premises, except for short periods of time. Subleasing may only occur with the written consent of the Airport Manager, under extenuating circumstances as defined by the City, or as expressly permitted in the lease.

6.4. Reversion Policy

6.4.1. At the end of the Base Term of the lease, the lessee shall quit and surrender the premises in as good a condition as reasonable use would permit, normal wear and tear excepted. However, the City Council shall have the option of requiring the tenant to remove its improvements and return the property to its pre-leased condition.

6.4.2. Tenants may apply to the City for an extension of the date of reversion of existing facilities to City ownership as established in the existing lease. There is no commitment by the City to grant a new lease, or extend the date of reversion. The City will examine the request and supporting documentation and make a decision based on the consideration given to AGENDA ITEM #1. a)

the city for the extension as well as what is best for the City and its citizens and the Airport as a whole, at the City Council's sole discretion.

6.4.3. For an application to be considered, the tenant must demonstrate that he/shehas made and/orcommits to making substantial investments in the leased area and has maintained the property in good condition under terms of the current lease. The applicant must show that the length of the requested new lease is needed to amortize substantial investments (maintenance costs shall not be considered as investments).

6.5. Standards and Guidance Policy

Lessees and sublessees on the Airport shall be required to comply with all applicable Airport Regulations and Minimum Standards, located at the Airport Office and City Clerk's Office. Such Regulations and Minimum Standards may be updated and revised from time to time as appropriate.

6.6. Termination for Default or Pursuant to Airport Plans

6.6.1. In the event of default by the lessee, the City may, if it so elects, at any time thereafter, terminate the lease and terms thereof, by giving the lessee, in writing, a 30-day notice of its intention to do so ifthe default is not corrected to the satisfaction of the City.

6.6.2. Ifthe City Council makes a determination, in accordance with the Airport Master Plan and the FAA-approved Airport Layout Plan, that the leased premises are needed for Airport development:

6.6.2.1. And where the Lessee has not constructed any permanent facilities on the premises, the City may offer the Lessee an alternative site if such a site is available on Airport property. If no alternative site is available OR the lessee chooses not to relocate on the Airport, the lease may be terminated by either party upon 30 days’ written notice.

6.6.2.2. And where the Lessee has constructed a permanent facility on the premises, the City may buy-out the remaining base term of the lease upon 30-days written notice of the City's intent to do so. The base term buy-out will be determined by amortizing the construction cost of the improvements on the premises in a straight-line depreciation of the premises over the base term, adjusted for inflation based on the region's consumer or construction price index. AGENDA ITEM #1. a)

6.7. Conformity with Laws, Ordinances, Rules and Regulations Policy

6.7.1. The lessee shall comply with all applicable local, state and federal laws, ordinances, rules and regulations, including all rules and regulations of the Federal Aviation Administration and the State and National Environmental Policy Acts. In addition, the lessee shall abide by and be subject to all City rules and regulations now in effect or enacted from time to time concerning the management, operation or use of the Airport.

6.8. Insurance Requirements Policy

6.8.1. Allleases, operating permits and subleases will contain an insurance clause.

6.8.2. Allleases, operating permits, and subleases will be subject to periodic adjustments of insurance requirements as imposed by the City of Renton.

6.8.3. Each lessee shall meet all State of Washington and the City of Renton insurance requirements and therefore maintain the types and amounts of insurance as specified in the lease or agreement.

6.9. Policy on Competitive Request for Proposal (RFP)Process

6.9.1. The City maintains the right, but not the duty, to seek competitive proposals for all leasehold space at Renton Municipal Airport. The proposal process will include public notices and information, and proposal documents will be available to the public at the Airport Office. AllRequests for Proposals will be consistent with applicable City policies and be reviewed and evaluated by the City. A fair and objective evaluation process will be used to select the proposals that best meet the City's interests based on the criteria listed in the proposal documents. The criteria may include, but not be limited to, the priority of uses listed below. The City Council will grant priority to competing offers for the use of space and/orfacilities as follows:

6.9.2. Non-aeronautical uses of aeronautical property arepermitted only on an interim basis, with FAA approval, and with necessary zoning in place. Airport land is limited, and due to the nature of the Airport Deed and the AGENDA ITEM #1. a)

classifications of land in the Airport Layout Plan, non-aeronautical uses are likelyto be rare.

6.9.3. New through-the-fence use (use that requires access to the Airport over the North and South Boeing bridges) is not allowed unless specifically approved by the City Council.

6.9.4. When space becomes available at the Airport, the City Council may issue a targeted request for proposal (RFP)for specific services or facilities that are consistent with the most current demand forecast, Airport Business Plan, and Airport Layout Plan. Responses inconsistent with the scope of the RFPwill be deemed non-responsive.

6.9.5. The City will review and score the proposals and refer the matter to the City Council for approval.

6.10. Policy on New Leases

The Airport is a mature facility, and the property is largely built out, and it may happen that demand for aeronautical leasehold facilities exceeds ava?ab??y. Oversubscribed facilities will be managed using a process that is fair, transparent and uniformly applied.

6.10.1. Noncommercial facilities

Ifthere is more demand for more T-hangars and/ortiedowns than can be met, the City will:

6.10.1.1. For the facilities it owns and operates, maintain a waiting list in order of application, and offer facilities to those on the waiting list as they become available; and

6.10.1.2. For facilities owned or operated by others, encourage those owning or operating said facilities to maintain a waiting list in order of application, and offer facilities to those on the waiting list as they become available.

6.10.2. Commercial facilities: the City will, where feasible, identify the aviation demand for services at the Airport and issue focused RFP’sfor AGENDA ITEM #1. a)

the services needed.

6.11. No Exclusionof Qualified Existing Lessees Policy

Current lessees shall not be excluded from submitting competitive proposals to the City.

6.12. Proposal Evaluations Policy

Each Request for Proposal will contain specific information regarding the Airport property currently being considered. Allproposals will include requirements for detailed information from the respondents regarding the ability of the lessee to use the property as proposed. For commercial service providers, the required information willinclude but not be limited to:

6.12.1. Proposed capital investment;

6.12.2. Qualifications;

6.12.3. Experience in services being offered;

6.12.4. Experience of management personnel;

6.12.5. Proposed services and products; and

6.12.6. Financial ability.

6.13. City Discretion Policy

6.13.1. The City has the discretion to accept the most financially advantageous offer for a given leasehold.

6.13.2. The City has the discretion to accept a less financially advantageous offer ifthe City finds that the proposal furthers the interests of the aeronautical users of the Airport.

6.13.3. The City has the discretion to require a City ownership interest, in whole or in part, in certain existing or new facilities. The City's discretion AGENDA ITEM #1. a)

extends to the choice of such facilities as well as to the manner in which such ownership is achieved (e.g. City construction or City acquisition).

6.14. Indemnification Policy

Allleases, operating permits and subleases will contain an Indemnification and Hold Harmless Agreement in a form acceptable to the City Attorney.

6.15. Hazardous Materials

Allleases, operating permits and subleases will contain a provision, in a form acceptable to the City Attorney, regarding contribution by lessee/sublesseetowards environmental cleanup of hazardous materials released by lessee or sublessee.

7. Design Criteria

7.1. Codes Allconstruction, alteration, moving, demolition, repair, and use of any building or structure within a lot will be subject to the provisions of the appropriate City of Renton Building Code and any other applicable code or ordinance.

7.1.2 Site Grading and Drainage In order to establish compatible grading and drainage relationships between buildings, parking and adjacent properties and to control drainage and erosion:

7.1.2.a A site plan indicating proposed grading and drainage must be approved by the City of Renton before any construction is initiated;

7.1.2.b Any grades, beaus, channels, and swales should be an integral part of the grading paved surface design;

7.1.2.c Paved area grades shall not exceed two percent slope and shall not be less than one half of one percent slope;

7.1.2.d Drainage facilities and structures shall be designed and maintained to accommodate all storm water generated by the lot in accordance with RMC4-6- 030 Drainage (Surface Water) Standards. These requirements may be updated as necessary. Routine inspections and maintenance provoked by said inspections shall be coordinated through the City of Renton.

7.1.3 Erosion Prevention during Construction AGENDA ITEM #1. a)

Permanent and temporary erosion control measures for each parcel governed by this document will be designed, constructed and maintain in conformance with RMC 4-6-O30 Drainage (Surface Water) Standards. These requirements may be updated as necessary. 7.1.4 Lot Aesthetics In order to create a compatible and continuous relationship between site landscape areas and the adjacent lots; to maintain a pleasant appearance in all areas not covered by building or parking; and to enhance the existing character of the lot:

7.1.4.a A landscape irrigation layout covering the area not occupied by building structures or pavement must be submitted to the Airport;

7.1.4.b Landscaping in accordance with the plans submitted must be installed before occupancy of the building. Ifseasonal conditions do not permit planting, interim erosion control must be approved by the Airport in writing;

7.1.4.c Plant materials must be approved by the Airport; 7.1.4.d Allparking areas which front on a street should be screened by a landscaped berm of a maximum height of three feet as measured from the adjacent parking lot surface. Berm slopes must not exceed 2:1 with a three foot (3') wide flat crown; 7.1.4.e Landscaping within the public right of way shall conform with City of Renton guidelines.

7.1.5 Buffers and Fences

In order to provide security and a visual buffer of unsightly areas such as storage and parking areas: 7.1.5.3 No fence or wall of any kind shall be constructed unless specifically approved by the Airport in writing;

7.1.5.b Objects such as water towers, storage tanks, processing equipment, cooling towers, communication towers, vents, and any other structures or equipment shall be architecturally compatible or effectively shielded from view from any street and shall be approved, in writing, by the Airport before construction or erection of said structures or equipment;

7.1.5.c Screening fences and buffer areas shall be of a height at least equal to that of the material or equipment being stored.

7.1.6 Loading and Service AGENDA ITEM #1. a)

In order to provide a functional and aesthetically pleasing method of handling loading and service areas and vehicles: 7.1.6.a Allloading and unloading of vehicles should be conducted on each lot; 7.1.6.b Loading areas, loading docks, parking areas, and service areas should be planned so that one use does not interfere with another;

7.1.6.c No loading docks or service areas shall be visible from the street. Use of landscaped buffer is recommended.

7.1.7 Pedestrian Circulation

In order to allow for safe and convenient movement of pedestrians throughout the lot and improvements:

7.1.7.a Sidewalk — five (5) foot minimum width;

7.1.7.b Provide convenient pedestrian access from all parking areas to building entrances.

7.1.8 Exterior Lighting

In order to create a functional, pleasing, and coordinated relationship of lighting, signs, and plant material for aesthetics, security and safety: 7.1.8.a A lighting plan describing the exterior illumination layout and fixture selection must be approved by the Airport in writing prior to construction; 7.1.8.b Lights shall not be placed to cause glare or excessive light spillage on neighboring sites; 7.1.8.c Allparking lot and driveway lighting should provide relatively uniform illumination. Accent illumination is recommended at key points such as entrances, exits, loading zones and drives; 7.1.8.d Concealed light sources are recommended; 7.1.8.e Security light sources shall be kept in operation all night; 7.1.8.f Lighting placement and strength should not interfere with or hinder aircraft movement or traffic; 7.1.8.g Exterior lighting fixtures must be approved by the Airport.

7.1.9 Maintenance AGENDA ITEM #1. a)

In accordance with a lease agreement and in order to ensure that all facilities are maintained in a neat and orderly manner: 7.1.9.a Each lessee shall maintain its buildings, landscaping, drives, parking lots, or other improvements located upon the lot in good an sufficient repair, and shall keep such premises painted, lawns cut, shrubbery trimmed, windows glazed and otherwise maintain the lot andimprovements in an aesthetically pleasing and first-class manner; 7.1.9.b Any improvements, planting, driveway, or parking lot surface which are damaged by the elements, by vehicles, fire, or any other cause shall be repaired as promptly as the extent of damage will permit; 7.1.9.c Buildings which are vacant for any reason shall be kept locked, windows shall be glazed in order to prevent entrance by vandals, and maintenance shall continue as if occupied;

7.1.9.d Grounds shall be maintained in a safe, clean and neat condition free of rubbish and weeds. Lawns shall be kept in a mowed condition. Roads and pavements shall be kept true to line and grade and good repair. Drainage gutters or basins shall be kept clean and free of any obstacles. Fences shall be maintained in good condition. Damage to plantings created by vandalism, automobile, or acts of nature shall be corrected within 30 days. Undeveloped areas for future use or expansion shall be maintained in a ground cover specified in the planting list and trimmed and mowed only as necessary to ensure a neat appearance. Irrigation of undeveloped areas is not required;

7.1.10 Buildings

7.1.10.a No building may penetrate any surface as defined in F.A.R. Part 77; 7.1.10.b Exterior building materials must be compatible with adjacent buildings and shall not affect aircraft operations. As a general rule, reflective glass and other materials will not be approved; 7.1.10.c Allexterior storage and service areas shall be screened by landscaping or architectural fencing. Alltrash shall be kept in enclosed, covered containers and screened from view;

7.1.10.d No mobile home, temporary office, or storage shed shall be installed or maintained on a lot without specific written approval from the Airport for a specified period of time;

7.1.10.e No building, or any use of a building, will be permitted on any lot that adversely affects another lot, the Airport, or violates a law of the United States, the State of Washington, the City of Renton or any minimum standards set forth AGENDA ITEM #1. a)

by the Airport.

7.1.11. Storage Areas

In order to shield stored materials from public view: 7.1.11.a No articles, goods, materials, machinery, equipment, plants, animals or similar items should be stored or kept in the open, or exposed to public view, within the area between building setback line and line along the street; 7.1.11.b No outside storage or operations of any kind shall be permitted on any lot, unless such activity is visually screened from the street in a manner approved by the Airport. No outside storage shall extend above the top of such screening; 7.1.11.c Any article, good, or material to be stored other than in an enclosed covered building shall be enclosed either with an architectural screen fence at least six feet in height or landscaped planting or both as directed and approved by the Airport;

7.1.11.d No storage shed or peripheral buildings other than the main building on each lot shall be permitted except during construction or as may be approved for special use.

8. Final Approval Process After authorization by the Administration, the Airport Manager will initiate the legislative approval process by drafting an Agenda Billand scheduling the matter to be heard at the next available City Council meeting. The City Council may choose to send the lease or operating permit to the Transportation Committee for further consideration. The Transportation Committee will recommend approval or denial of the lease or operating permit to the City Council. The City Council willthen determine whether the lease or operating permit should be approved or denied. AGENDA ITEM #1. a)

Renton Municipal Airport Airport Leasing Policies

0 Renton Airport 0

Clayton Scott Field ~ Will Rogers-Wiley Post Seaplane Base 616 West Perimeter Road, Renton, Washington 98057 Phone: 425-430-7471 Fax: 425-430-7472

Adopted February 25. 2008 AGENDA ITEM #1. a)

Renton Municipal Airport Clayton Scott Field Airport Leasing Policies

Leasing Policies adopted in Appendix H-1 of the Airport December 12, 2002 Business Plan dated December 5, 2002 as adopted by the Ma or and Cit Council Adopted new Policy 4.2.2.1. and shortened the term February 20, 2006 “Minimum Standards for Commercial Aeronautical Activities” to “Regulations and Minimum Standards” 3 Added Key Governing Policies to the document, added February 25, 2008 Attachment C Lease/Operating Permit Application Form, added Section 5.3 Appeals and cleaned up formatting of sections. 4 Corrected typos, Section 5.1, 15‘paragraph last sentence April 28, 2014 reference from (See Policy 5.12) to (See Policy 6.12) AND Section 5.1, 2nd paragraph last sentence reference from (See Policy 5.14, 5.15 and 5.16) to (See Policy 6.14, 6.15 and 6.16).

Page 2 of20 AGENDA ITEM #1. a)

1. Key Governing Policies for the Airport

The following Key Governing Policies for the Airport were adopted by the Renton City Council on March 26, 2007.

1.1 Airport operations should be sensitive to neighborhood impacts and should strive to minimize those impacts.

1.2 The Airport should be financially self-sustaining.

1.3 The mix of uses at the Airport should operate within the regulatory framework set by the Federal Aviation Administration.

1.4 The mix of uses at the Airport should contribute to the City’s Business Plan goals and objectives.

Statement of Purpose

This Leasing Policy for Renton Municipal Airport is intended to provide guidance for leasing Airport property and be a guide for City staff on Airport leasing issues. This policy guide has the following purposes:

2.1. Maintain Renton Municipal Airport in a safe manner;

2.2. Preserve investment in the Airport;

2.3. Assist the City of Renton in maintaining a fee and rental structure that provides for financial self-suf?ciency for the Airport;

2.4. Provide high-quality leasing procedures following a "best practices” approach:

2.5. Facilitate orderly development and management of the Airport;

2.6. Ensure equal treatment of all current and future tenants and users to make the Airport available for public use on reasonable terms and those terms required by FAA grants;

2.7. Facilitate and foster good relations with the communities surrounding the Airport;

2.8. Enable conformity with current and ?iture Airport Master and Layout Plans; and

2.9 Ensure compliance with all applicable laws, regulations, policies, guidelines and requirements related to the City’s Federal and State obligations.

Page 3 of 20

Ex.) AGENDA ITEM #1. a)

General Applicability

If there are any inconsistencies between the Renton Municipal Airport Leasing Policy and existing property leases, the existing lease shall prevail.

De?nitions

The following words, terms and phrases, when used in this policy, shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning:

Aeronautical means anything which involves, makes possible, or is required for the ?ight of aircraft, or the storage or presence of aircraft on the airport, or which contributes to, or is required for the safety of aircraft in ?ight.

Aircraft means a device that is used or intended to be used for ?ight in the air and subject to regulation by the Federal Aviation Administration.

Airport, when capitalized, means the Renton Municipal Airport, and all of the property, buildings, facilities and improvements within the exterior boundaries of the Airport as depicted by the Airport Layout Plan.

Airport Manager means the Chief Administrative Of?cer or his/her designee who has direct supervisory and functional responsibility for the operation and maintenance of the airport.

Commercial aeronautical activity means the conduct of any aspect of a business, concession, operation, or agency in order to provide goods and services to any person for compensation, consideration or hire. An activity is considered a commercial activity regardless of whether the business is non-profit, charitable, or tax-exempt.

Commercial tenant means a person, ?xed base operator, ?rm, corporation or other entity conducting commercial aeronautical services or activities at the Airport for compensation or hire.

Fair market value means an amount in the competitive market that a well-informed and willing lessor, who desires but is not required to lease, would accept and which a well- informed lessee, who desires but is not required to lease, would pay for the use of the Premises, after due considerationof all the elements reasonably affecting value.

Lessee means any person with a lease to occupy space at the Airport.

Regulations and Minimum Standards means the qualifications or criteria, which may be established, and updated as necessary, by the Airport owner as the minimum requirements that shall be met by all businesses offering commercial aeronautical activities for the right to conduct those activities.

Page 4 of 20 AGENDA ITEM #1. a)

Operating Permit and Agreement means a permit issued by the City to a sublessee desiring to conduct a commercial aeronautical business, or otherwise construct a building on the airport for the purposes of aircraft storage.

Permit means administrative approval by the City of Renton to a person or company to conduct a commercial aeronautical activity, and provide such services, to based and transient aircraft, only from facilities and locations where such services are authorized.

Person means any individual, ?rm, partnership, corporation (including registered non- profit corporations), company, association, joint—stockassociation, or governmental entity. It includes a trustee, receiver, assignee, employee, agent, or similar representative of any of them.

Sublessee means any person with a sublease to occupy space at the Airport.

Page 5 of 20 AGENDA ITEM #1. a)

Soliciting Interest in Airport Property and the Lease Application Process

The intent of this section is to illustrate the various options for soliciting interest in available airport property and the Administrative and Legislative processes involved in requesting a Lease or Operating Permit from the City. lt shall be at the City’s discretion, which of the available options shall apply to the property involved, depending upon what is in the best interest of the use of airport property.

5.1. Soliciting Interest in Airport Property

The process which the City uses to solicit interested parties in property and/or building leases may differ depending on the unique circumstances of the leased area. For example, the City may choose to initiate a Request for Proposal (RFP) on a speci?c land area available for leasing. Under the RFP process, the City would dictate speci?c development criteria that a development would need to meet in order to receive consideration. A notice regarding the RFP process would be published in the newspaper or business journal and existing airport tenants would receive a courtesy notice. (See Policy 6.12)

The City may also choose to offer a speci?c land or building available for leasing to an existing airport tenant (lessee or sublessee), or a speci?c interested party. The City may choose this approach when it is deemed to further the development of the airport, consistent with the Airport Master Plan. (See Policies 6.14, 6.15 and 6.16)

5.2. Obtaining the Lease or Operating Permit

In order to initiate a commercial aeronautical activity at the Renton Municipal Airport, an applicant must establish a business address on the airport. Land and buildings may be leased from the City, or subleased from an existing tenant. In the case of subleasing from an existing tenant, the sublessee must obtain an Operating Permit from the City.

5.2.1. To obtain a land or building lease or an operating permit (for sublessees) at Renton Municipal Airport, a person shall submit a written application for review by the Airport Manager. As a prerequisite to occupancy or the granting of commercial operating privileges at the Airport, any prospective commercial tenant must also submit a speci?c, detailed description of the intended commercial aeronautical activities, and the means and methods employed to accomplish the proposed activities. The application shall be on a form provided by the City of Renton. The Renton Municipal Airport’s Regulations and Minimum Standards contain the minimum application information and should be referenced prior to initiation of an application.

5.2.2. After receiving an application, the Airport Manager will determine whether the application as submitted contains the necessary information to continue the application process (see Attachment C). If the application is deemed complete,

Page 6 of 20 AGENDA ITEM #1. a)

and the criteria and requirements set out in these Airport Leasing Policies are met, the Airport Manager will draft a lease, or operating permit. The City Attorney will then review the draft lease or operating permit, before submission to the City Council for approval.

5.2.2.1. Analysis of Lessee’s Financial Capacity

The applicant must, at the applicant’s expense, obtain a score, as described below, from a consultant acceptable to the City. The consultant will evaluate whether the applicant has the financial capacity to meet the long- term obligations of a lease of Airport property. The following financial statements shall be provided directly from the applicant to the consultant:

5.2.2.l.a. Balance sheet and income statement for the current year and two years prior;

Projected income statement and business plan if activities at the Renton Municipal Airport are a new business enterprise for the Lessee;

Schedule of current debt payments (principal and interest) and lease obligations (and, if a new enterprise, a schedule of obligations incurred or to be incurred for the new enterprise);

A Dunn & Bradstreet credit report on the applicant;

5.2.2.l.e. Any additional information as may be needed to compute the score as set out in Attachment B

5.2.2.2. Approval of a completed application shall be determined by, but not limited to, the following criteria to assess the ?nancial capacity of the applicant lessee:

5.2.2.2.a. Number of years in airport-related activities;

5.2.2.2.b. Airport-related management experience of principal owner/manager;

5.2.2.2.c. Dunn & Bradstreet Creditreport/pay history;

5.2.2.2.d. Financial viability of operations;

5 2.2.2 e Ability to support lease payments from earnings net of cost of operations, taxes, depreciation/amortization, other debt/lease obligations;

5.2.2.2.f Current ratio (current assets divided by current liabilities) of at least 1:1;

5.2.2.2.g Debt Service Coverage ratio ofat least 1.25;

Page 7 of 20 AGENDA ITEM #1. a)

5.2.2.2.h. Net Worth.

5.2.2.2.i. A credit score of 650 or better.

5.2.2.2.j. The criteria above may be modi?ed as needed to improve the evaluation of prospective lessees.

5.2.2.3. The above criteria will be evaluated by the Consultant using the rating scale stated in Attachment B, which may be modi?ed as needed to improve the evaluation of prospective lessees. An applicant receiving a score of 25-32 shall be eligible for a lease over 5 years. An applicant receiving a score of 17 — 24 may be considered for a short-tenn lease. An applicant receiving a score of 16 and under, or a score of “O”for criteria A or B shall not be considered for a lease.

5.2.3. After authorization by the Administration,the Airport Manager will initiate the legislative approval process by drafting an Agenda Bill and scheduling the matter to be heard at the next available City Council meeting. The City Council may choose to send the lease or operating permit to the Transportation Committee for further consideration. The Transportation Committee will recommend approval or denial of the lease or operating permit to the City Council. The City Council will then determine whether the lease or operating permit should be approved or denied, see Attachment A - Lease/OperatingPermit Application Process Flowchart.

5.3. Appeals

An applicant who receives a score of 24 or less, as described in paragraphs 5.2.2.1, 5.2.2.2, and 5.2.2.3, above, may appeal the assigned score to the City Council.

5.3.1. Requirements for Notice of Commencing Appeal

5.3.1.1. Notice of Appeal: Within 14 calendar days of receiving notice from the Airport Manager of the score described in 5.2.2.1, 5.2.2.2, and 5.2.2.3, above, the applicant must ?le with the City Clerk, a written Notice of Appeal, which shall ?illy, clearly, and thoroughly specify the grounds for appeal, guided by the requirements in paragraph 5.3.3, below.

5.3.1.1 .a. This documentshall be called a Notice of Appeal signed by the Applicant/Appellant

5.3.l.l.b. For purposes of this subsection, the notice from the Airport Manager must be in writing and will be deemed received on the date of personal delivery OR three (3) days from the date said notice is posted in the United States Mail if delivery is by mail

5.3.1.1.c. The Notice of Appeal may not contain any factual information that was not submitted to the Consultant. Any new factual informationwill

Page 8 of20 AGENDA ITEM #1. a)

be removed from the Notice of Appeal and will not be considered by the City Council. The appeal will be referred to the Transportation Committee of the City Council for its consideration and recommendation to the full City Council.

5.3.1.2. Appeal Fee: The Notice of Appeal shall be accompanied by a fee in the amount provided for appeals of land use decisions, as described in RMC 4- l—l7OA,as that provision is currently worded and as hereafter amended.

5.3.1.3. Facsimile Filing: The required Notice of Appeal may be ?led by facsimile. However, such facsimile ?ling is subject to the following limitations and requirements:

5.3.1.3.a. Any facsimile ?ling received at the City Clerk’s of?ce after ?ve o’clock (5:00) p.m., on any business day will be deemed to have been received on the following business day.

5.3.l.3.b. Any facsimile ?ling received after ?ve o‘clock (5:00) p.m., on the last date for ?ling will be considered an untimely ?ling

5.3.l.3.c. Any party desiring to make a facsimile ?ling after four o’clock (4:00) p.m., on the last day for the ?ling must call the City Clerk’s of?ce and indicate that the ?ling is being made by facsimile and the number to which the facsimile copy is being sent. The ?ling party bears the burden to ensure that the facsimile ?ling is transmitted in adequate time so that it will be completely received by the City before ?ve o’clock (5:00) p.m.

5.3.l.3.d. In all instances in which ?ling fees are to accompany the ?ling of an appeal, those ?ling fees must be received by the City before the end of the business day on the last day of the ?ling period or the ?ling will be considered incomplete and will be rejected.

5.3.2. Referral to Committee

The appeal will be referred to the Transportation Committee of the City Council for its consideration and recommendation to the full City Council

5.3.3. Record on Appeal

5.3.3.]. The Record on Appeal shall consist of the materials submitted to the Consultant.the City’s Airport Leasing Policies, the Renton Municipal Airport Development Study, and the Notice of Appeal.

5.3.3.2. No public hearing will be held by the City Council.

Page 9 of 20 AGENDA ITEM #1. a)

5.3.3.3. No new or additional evidence or testimony will be accepted by the City Council unless a showing is made by the party offering the evidence that the evidence could not reasonably have been available at the time of the submissions to the Consultant. If the Council determines that additional evidence is required, the Council shall remand the matter to the Administration with directions to submit the new information to the Consultant for a new analysis.

5.3.3.4. The Applicant/Appellant, as well as a representative of the City, may submit written arguments based on the record. However, no new evidence will be permitted in these submissions, except as provided in paragraph 5.3.3.3, above. New evidence submitted that is not in compliance with paragraph 5.3.3.3, above, shall be removed from these submissions. These submissions shall become part of the record on appeal.

5.3.4. Standard of Review

It shall be the Applicant/Appellant’s burden to show by clear and convincing evidence that

5.3.4.1. The Consultant committed a substantial error in his/her analysis, OR

5.3.4.2. The information provided to the Consultant shows there is good cause to refrain from applying one (not more than one) of the criteria in paragraph 5.2.2.2, above, AND the non-application of said criterion will result in (a) a score of 17 or higher, if the appeal is taken from a score of 16 or lower, or (b) 25 or higher, if the appeal is taken from a score of 24 or lower.

5.3.4.3. For purposes of this subsection, “good cause” shall mean the application of the criterion would result in an unreasonable prejudice to this particular applicantbecause of this applicant’s unique situation that was not created through any act of the applicant. In no event will “good cause” be found where the waiver of the criterion would, on balance, be prejudicial to the interests of the City of Renton or the Renton Municipal Airport, where the waiver of the criterion would not further the Renton Municipal Airport Development Plan, or where the waiver of the criterion would cause a con?ict with other Airport Leasing Policies.

5.3.5. Findings and Conclusions Required

If, upon appeal of the score assigned, pursuant to paragraphs 5.2.2.1, 5.2.2.2, and 5.2.2.3, above, and after examination of the record and submissions by the parties, the Council determines that there is clear and convincing evidence that the Consultant committed a substantial error, or that good cause exists to refrain from applying one (not more than one) of the criteria in paragraph 5.2.2.2, above, it shall adopt written Findings and Conclusions supported by the record.

Page 10 of20 AGENDA ITEM #1. a)

5.3.6. Council Action

5.3.6.1. Upon a ?nding by clear and convincing evidence that theConsultant committed a substantial error OR that the information provided to the Consultant showed a good cause to refrain from applying a criterion in paragraph 5.2.2.2, the Council may approve the lease as follows:

5.3.6.1.a. An appeal from a score of 16 or less may be considered for a short term lease of less than 5 years.

5.3.6.1.b. An appeal from a score of less than 24, but greater than 16, may be considered for a lease term of 5 years or more.

5.3.6. 1.c. The action ofthe City Council shall be ?nal. General Leasing Policies

6.1. Applicability/Scope

6.1.1. The Effective Date of each section of the Leasing Policies is the date of the adoption of the Resolution approving the Airport Leasing Policies

6.1.2. The Leasing Policies apply to all leases, operating permits and agreements, extensions, amendments, or assignments of leases, or subleases of such land or facilities requested or approved after the effective date of the Leasing Policy. 6.2. Use of Premises Policy

6.2.1. The space leased to any lessee may be limited to space demonstrablyneeded for the lessee’s immediateuse. Where facilities must be built or developed, a reasonable amount of lead-timefor such developmentshall be negotiated.

6.2.2. In leases, the Use of Premises shall be closely de?ned to allow intended uses and to prohibit unintended or impermissible uses.

6.2.3. Changes in use shall not be permitted without the written agreement of the City Council. Where a facility was leased based on representations that the tenant would provide speci?c services identi?ed by the City as serving aeronautical demand by the public, changes in use shall be disfavored.Permission for other changes in aeronautical uses shall not be unreasonably withheld.

6.3. Lease Term Policy for Land

6.3.1. The base lease term for land leases shall be no longer than 25 years. Longer lease terms may be negotiated at the time of initiatingthe lease based on a proven need for additional years to amortize the investment made on airport property.

Page 11 of 20 AGENDA ITEM #1. a)

All leases shall contain a clause allowing the City to conduct a yearly maintenance inspection of the property to ensure the facilities are being properly maintained. If an inspection of the property reveals de?ciencies in maintenance of the facilities, the tenant will be issued a correction notice and a date on which a re-inspection of the premises will occur. If the next inspection of the property reveals that the leaseholder has not corrected the de?ciencies, the lease will be terminated.

6.3.3. All new leases will contain a provision requiring the leaseholder conducting a commercial aeronautical activity, to provide restroom facilities to the ?ying public.

6.3.4. Tenants may apply to the City to negotiate a new lease ?ve years prior to the expiration of the current lease. When the City Council considers the granting of a new lease, the performance of the existing tenant, conformity to existing Airport Regulations and Minimum Standards, and provisions of the tenants’ lease requirements will carry signi?cant weight.

6.3.5. Tenants with less than ?ve years left on their current lease may apply to the City to negotiate a new lease pursuant to the provisions of paragraph 6.3.4. However, starting on May 1, 2008, if a leaseholder fails to commence renegotiation of a new lease with the City, the lease shall be terminated at the lease termination date.

6.4. Lease Term Policy for Buildings

6.4.1. Hangar space leased to aviation businesses for the provision of aircraft maintenance, fueling or other aviation business activities will be leased for a period of up to five years with no guaranteed renewal.

6.4.2. If major improvements or maintenance are needed to the City owned facility, the City Council may choose to offer an increased lease period, consistent with scheduled private investments in the facility.

6.4.3. After a lessee’s building lease term has expired, the City Administration may suggest to the City Council that the premises should be offered up in an open public competitive process. The previous tenant may again compete with other potential tenants for the premises.

6.4.4. If the City Council chooses to retain the existing tenant, the parties will enter into a negotiation for a new lease.

6.4.5. Any new lease granted under the paragraph above will be considered, only if the lessee has met its obligations under the terms of the preceding lease. When the City Council considers the granting of a new lease, performance of existing tenant, conformity to existing Airport Regulations and Minimum Standards, and provisions of the tenants’ lease requirementswill carry significant weight.

Page 12 of 20 AGENDA ITEM #1. a)

6.5. Rates & Charges Policy

6.5.1. The City will not engage in unjust economic discrimination among tenants, nor will it impose discriminatory terms. The base ground and/or building lease rate for each leasehold will be determined based on fair market value. Building base lease rates will be determined through a current appraisal of the facility by a ?rm chosen by the City.

6.5.2. As new ground and building leases are entered into, or leases are amended, the City Council reserves the right to update lease rates to current values.

6.5.3. The City may set different rates for different tenants based on rational factors that shall include but not be limited to: the value of property to be leased, the amount and kind of the tenants investment, the value of the business opportunity (for those providing services to the public), the amount of use projected of common facilities, the type of use being made, and the degree of competition for the facility to be leased.

6.5.4. Rates may be adjusted during the life of a lease. Adjustments shall be of two types; annual adjustment linked to the CPI for the -Tacoma-Bremerton urban area, and ?ve year adjustments based on re—evaluationof property or some other measure as negotiated.

6.5.5. Land and building rates shall be set to maintain the Airport as a self-sustaining enterprise fund within the City. Ground and building rates shall be kept competitive with the rates at other airports in the region.

6.5.6. There shall be no granting of the exclusive right to provide or engage in any aeronautical activity at the Airport; and no lease, sublease, operating permit or other agreement that is or shall be in effect at the Airport shall be construed as creating such a right.

6.6. Subleasing and Assignments Policy

6.6.1. There shall be no assignments or transfers of leasehold interest, buildings or facilities on the Airport without the written consent of the City Council. Such approval shall not be unreasonably withheld.

6.6.2. There shall be no subleases providing space to aeronautical service providers without an Operating Permit approved by the City Council. All sublessees seeking to initiate a commercial activity on the Airport must apply for and obtain an Operating Permit with the City.

6.6.3. Lessees providing hangar space for private and corporate aircraft storage may do so without the written consent of the City.

6.6.4. Tenants leasing City-owned and operated hangar or tiedown space may not Sublease their premises, except for short periods of time. Subleasing may only

Page 13 of 20 AGENDA ITEM #1. a)

occur with the written consent of the Airport Manager, under extenuating circumstances as de?ned by the City, or as expressly pennitted in the lease.

6.7. Reversion Policy

6.7.1. At the end of the Base Term of the lease, the lessee shall quit and surrender the premises in as good a condition as reasonable use would permit, normal wear and tear excepted. However, the City Council shall have the option of requiring the tenant to remove its improvements and return the property to its pre-leased condition.

Tenants may apply to the City for an extension of the date of reversion of existing facilities to City ownership as established in the existing lease. There is no commitment by the City to grant a new lease, or extend the date of reversion. The City will examine the request and supporting documentationand make a decision based on the consideration given to the city for the extension as well as what is best for the City and its citizens and the Airport as a whole, at the City Council’s sole discretion.

6.7.3. For an application to be considered,the tenant must demonstratethat he/she has made and/or commits to making substantial investmentsin the leased area and has maintained the property in good condition under terms of the current lease. The applicant must show that the length of the requested new lease is needed to amortize substantial investments(maintenance costs shall not be considered as investments).

6.8. Standards and Guidance Policy

Lessees and sublesseeson the Airport shall be required to comply with all applicable Airport Regulations and Minimum Standards, located at the Airport Of?ce and City Clerk’s Of?ce. Such Regulations and Minimum Standards may be updated and revised from time to time as appropriate.

6.9. Termination for Default or Pursuant to Airport Plans

6.9.]. In the event of default by the lessee, the City may, if it so elects, at any time thereafter, tenninate the lease and terms thereof, by giving the lessee, in writing, a 30-day notice of its intentionto do so if the default is not corrected to the satisfaction of the City.

6.9.2. If the City Council makes a determination,in accordance with the Airport Master Plan and the FAA-approved Airport Layout Plan, that the leased premises are needed for Airport development:

6.9.2.1. And where the Lessee has not constructed any permanent facilities on the premises, the City may offer the Lessee an alternative site if such a site is available on Airport property. If no alternative site is available OR the

Page 14 of20 AGENDA ITEM #1. a)

Lessee chooses not to relocate on the Airport, the lease may be terminated by either party upon 30 days’ written notice.

6.9.2.2. And where the Lessee has constructed a pennanent facility on the premises, the City may buy-out the remaining base term of the lease upon 30-days written notice of the City’s intent to do so. The base tenn buy-out will be determined by amortizing the construction cost of the improvements on the premises in a straight-line depreciation of the premises over the base tenn, adjusted for in?ation based on the regions consumer or construction price index.

6.10. Conformity with Laws, Ordinances, Rules and Regulations Policy

The lessee shall comply with all applicable local, state and federal laws, ordinances, rules and regulations, includingall rules and regulations of the Federal Aviation Administration and the State and National Environmental Policy Acts. In addition, the lessee shall abide by and be subject to all City rules and regulations now in effect or enacted from time to time concerning the management, operation or use of the Airport.

6.11. Insurance Requirements Policy

6.11.1. All leases, operating permits and subleases will contain an insuranceclause.

6.11.2. All leases, operating permits, and subleases will be subject to periodic adjustments of insurance requirements as imposed by the City of Renton.

6.11.3. Each lessee shall meet all State of Washington and the City of Renton insurance requirements and therefore maintain the types and amounts of insuranceas speci?ed in the lease or agreement.

6.12. Policy on Competitive Request for Proposal (RF P) Process

The City maintains the right, but not the duty, to seek competitive proposals for all leaseholdspace at Renton Municipal Airport. The proposal process will include public notices and information,and proposal documentswill be available to the public at the Airport Of?ce. All Requests for Proposals will be consistent with applicable City policies and be reviewed and evaluated by the City. A fair and objective evaluation process will be used to select the proposals that best meet the City’s interestsbased on the criteria listed in the proposal documents.The criteria may include,but not be limited to, the priority of uses listed below. The City Council will grant priority to competing offers for the use of space and/or facilities as follows:

6.12.1. Non—aeronauticaluses of aeronautical property are permitted only on an interim basis, with FAA approval, and with necessary zoning in place. Airport land is limited, and due to the nature of the Airport Deed and the classi?cations of land in the Airport Layout Plan, non-aeronautical uses are likely to be rare.

Page 15 of 20 AGENDA ITEM #1. a)

6.12.2. New through-the-fence use (use that requires access to the Airport over the North and South Boeing bridges) is not allowed unless speci?cally approved by the City Council.

6.12.3. When space becomes available at the Airport, the City Council may issue a targeted request for proposal (RFP) for speci?c services or facilities that are consistent with the most current demand forecast, Airport Business Plan, and Airport Layout Plan. Responses inconsistent with the scope of the RFP will be deemed non-responsive.

6.12.4. The City will review and score the proposals and refer the matter to the City Council for approval.

6.13. Policy on New Leases

The Airport is a mature facility, and the property is largely built out, and it may happen that demand for aeronautical leasehold facilities exceeds availability. Oversubscribed facilities will be managed using a process that is fair, transparent and uniformly applied.

6.13.1. Noncommercial facilities

If there is more demand for more T-hangars and/or tiedowns than can be met, the City will:

6.13.1.1. For the facilities it owns and operates, maintain a waiting list in order of application, and offer facilities to. those on the waiting list as they become available; and

6.13.1.2. For facilities owned or operated by others, encourage those owning or operating said facilities to maintain a waiting list in order of application, and offer facilities to those on the waiting list as they become available.

6.13.2. Commercial facilities: the City will, where feasible, identify the aviation demand for services at the Airport and issue focused RFP’s for the services needed.

6.14. No Exclusion of Quali?edExisting Lessees Policy

Current lessees shall not be excluded from submitting competitive proposals to the City.

6.15. Proposal Evaluations Policy

Each Request for Proposal will contain speci?c information regarding the Airport property currently being considered. All proposals will include requirements for detailed information from the respondents regarding the ability of the lessee to use the property as proposed. For commercial service providers, the required information will include but not be limited to:

Page 16 of 20 AGENDA ITEM #1. a)

6.15.1. Proposed capital investment;

6.15.2. Quali?cations;

6.15.3. Experience in services being offered;

6.15.4. Experience of management personnel;

6.15.5. Proposed services and products; and

6.15.6. Financial ability.

6.16. City Discretion Policy

6.16.]. The City has the discretion to accept the most ?nancially advantageous offer for a given leasehold.

6.16.2. The City has the discretion to accept a less ?nancially advantageous offer if the City ?nds that the proposal furthers the interests of the aeronautical users of the Airport.

6.16.3. The City has the discretion to require a City ownership interest, in whole or in part, in certain existing or new facilities. The City’s discretion extends to the choice of such facilities as well as to the manner in which such ownership is achieved (e.g. City construction or City acquisition).

6.17. Indemni?cation Policy

All leases, operating permits and subleases will contain an Indemni?cation and Hold Harmless Agreement in a form acceptable to the City Attorney.

6.18. Hazardous Materials

All leases, operating permits and subleases will contain a provision, in a form acceptable to the City Attorney, regarding contribution by lessee/sublessee towards environmental cleanup of hazardous materials released by lessee or sublessee.

Page 17 of 20 AGENDA ITEM #1. a)

8.6 E emu; ?v?v o_£ma£:_ .5 2038095 uuE8c m:o_Eo__&w.o,._ ?b _ $_ou>» N.82 H< 930.5 .123. 3.. V603 ammo..< 8.83 m5.8. 3. Nmm_.nw.oo_&<

:o_m_oon_ 8c._EEoU :o:m.N:o5:< >>o_>o~_Emu... 229:8 :o_Eo__nE< BBQE8 _8:_En:m zoczou :oc:oU 8 vot?om :o:m:m_:_Ev< £3 _s__8__&< 2o_mEoU m_=o_§__&< :o_:8__&< t :E._o._ mozocsou : mo:_:_._Bou wcz?omo mom_>um 33...“: E ammo; :o_§.m_:_Eu< :oE_< mc?v $wm:w_>_ :oa.__<

«.330 >>o_,mmmoocam=c_:3=.E< :E.5m w.__..22_o\§3

< w:0E£0m?< AGENDA ITEM #1. a)

oN._o 2 own;

N E2: m. 082 _m=::m.8 :9: 0.5.: N_Etc», 82 N EoE>wN_omao__m=::mxmI xmE £._o3 82 N_ EoEbNN_own». _a==EN xm:9: $2 :3 EoEb& omuo__m::=m8 .23 m_5.53 82 EoEbNN_83. _m:::N :9: N3. :5 .o>_._NoaE _._:o.$ 82 o E33 6: o>_.awuZ __to.$ $2 N .s.N 03% N_owe N SN I xe._ N_umo N_ x2 I .5; m_omo xo._ :9: 32 m_Own awn:uwEo>oUmu_>bm Boo N xo.mo>onmm_cum.E9220 N xo.mI 3.. N_25.. =.2.=._U N_ xm._Ixo._ N_069. E850 xo._ :9: N3. E Est Eotzv 2:2 =._o.C:U N E2: N. omao__m:=:m.o>o NEE.o.m55 29: NNEEmm$2 ?:o_8N_Eo wasoEooE N EoEbNN_88. _a:::a ._o>o 38: o.m-mm._NwEEmmB2 u8uo_.oEom: .om_E._u=_o30: .5 m:o_:Nw__N.o N_ =a:_N3 ammo._m::S~ xmm._:2: N8. 8 2 E33 mwE:._mm_$2 oNmo_>N_on.556 .:o_SN:._oEm\:o_§ooEo_u Esra ammo._m:::a .85 $2 mwEEmm_$2 .853 .N=o:m._oN_o.8 woono6: NwEEmm_ N 33 man. E 85 o3Sco._N_ N Emu» man.weN_E 32: o_oS_.__8n_ N_ N33 mas .8 E 32: o??coi N89» m:a E C05 N88... o b:_N_S_._o._N_2n.:m:oEov 8:50 m:o:m._uN_o(8 b:_N_m_> N 33 .N:o=.mEuE€:. .No_3.:b_:mn o5 no.8 E38 .520 canVa: 32 I ENE an. N EN: >6. I bo.N=._DE N EN: EEuoE I boil awn.

_ I EN: .3. b2N:._ Nam o x._o.m:_Eves oZ :82 :u2u\b9N_—_NamEobmw?ma.SEQ N £8 9 .35 0.8:. N NSQNm_I N N_ Emu» 06 I m NEQNmcap: N84 .ows:wE\.o:3o_8_2__a o oo:o_._oN_xuoz .8 35593 .:oEowm:mEv2m_.a:-:oNE< N emu N. ENE29: N N33 N. I 5 N_ N23» 06 I m NSPNo.m-_52: $3 o oocotoaxooz NNoEN:N_u2£2-toN_Ea E 28> g 2.3 2:3. mEuE_._oa:< AGENDA ITEM #1. a)

Attachment C Renton Airport Clayton Scott Field 616 W. Perimeter Road - Unit A, Renton, WA 98057 Phone 425-430-7471/ Fax 425-430-7472

AIRPORT LEASE/OPERATING PERMIT APPLICATION FORM

Please read the Airport Leasing Policies and the Airport Regulations and Minimum Standards prior to ?lling in this application.

Applicant Name:

Contact Person:

Phone: Email:

Mailing Address:

Lease Area Location, if known:

Type of Lease (circle all that apply): Ground Building Operating Permit (for subleasing)

If Operating Permit Application, name of Business from whom Subleasing:

Provide a detailed description (Purpose of Use) of the intended commercial aeronautical activities:

Describe the means and methods to accomplish the intended activities:

(Attach additional sheets as necessary)

Credit Score:

Applicant Signature (if sublease, signature of lessee) Date

Airport Manager Signature Date

Page 20 of 20 AGENDA ITEM #1. a)

CITY OF RENTON, WASHINGTON

RESOLUTION NO. ______

A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, ADOPTING AIRPORT LANDSIDE LEASING POLICIES.

WHEREAS, the Renton Municipal Airport’s boundaries include both airside parcels

(parcels with access to the secured airside portion of the Airport) and landside parcels (parcels

without such access); and

WHEREAS, the Renton Municipal Airport has used a set of policies known as the “Airport

Leasing Policies” to guide the leasing process when airside parcels become available for lease, but the Airport Leasing Policies do not provide specific guidance for the leasing of landside

parcels; and

WHEREAS, within the past year, the Renton Municipal Airport has received interest from potential lessees of a landside parcel (300 Rainier Avenue North); and

WHEREAS, City staff has prepared a set of Airport Landside Leasing Policies that are consistent with the existing Airport Leasing Policies but provide specific guidance for the leasing of landside parcels, including the landside parcel which has received recent interest;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO

RESOLVE AS FOLLOWS:

SECTION I. The City Council hereby adopts the Airport Landside Leasing Policies in a

form the same or substantially similar to the version attached hereto as Exhibit A.

SECTION II. The City Council hereby authorizes the Public Works Administrator, or his

or her designee, to make such subsequent non‐substantive amendments or updates to the

1

AGENDA ITEM #1. a) RESOLUTION NO. ______

Airport Landside Leasing Policies as may be necessary or desired. Non‐substantive amendments

and updates include changes to formatting, corrections of typographical errors or grammar,

changes to procedure, and revisions to internal references.

PASSED BY THE CITY COUNCIL this ______day of ______, 2019.

______Jason A. Seth, City Clerk

APPROVED BY THE MAYOR this ______day of ______, 2019.

______Denis Law, Mayor

Approved as to form:

______Shane Moloney, City Attorney

RES:1826:11/8/19

2

AGENDA ITEM #1. a) RESOLUTION NO. ______

EXHIBIT A Renton Municipal Airport: LANDSIDE LEASING POLICIES

3

AGENDA ITEM #1. a)

Renton Municipal Airport: LANDSIDE LEASING POLICIES

Renton Airport Clayton Scott Field ~ Will Rogers‐Wiley Post Seaplane Base 616 West Perimeter Road‐Unit A, Renton, Washington 98057 Phone: 425‐430‐7471 [email protected]

Adopted xxx xx, xxxx

1. Introduction

The City of Renton adopts this Landside Leasing Policy for the Renton Municipal Airport to provide guidance on certain leasing issues associated with the use of Airport landside property.

2. Statement of Purpose

This Landside Leasing Policy is intended to provide guidance for leasing landside Airport property (property without access to the secured airside portion of the Airport) and be a guide for City staff on the Airport landside leasing issues that are covered by this document. This document is not intended to comprehensively cover all leasing issues for any particular property.

3. General Applicability

If there are any inconsistencies between this Landside Leasing Policy and a lease entered into by the City of Renton, the lease shall prevail.

4. Definitions

The following words, terms and phrases, when used in this Landside Leasing Policy, shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning:

Accessory use or structure means a use or structure (exceeding 120 square feet) subordinate to the principal structure or use which serves a purpose, customarily incidental to the principal use.

Berm means a mound of earth used for screening, definition of space, noise attenuation and decoration in landscaping.

AGENDA ITEM #1. a)

Buffer means a strip of land established to separate and protect one type of land use from another, to screen from objectionable noise, smoke or visual impact, or to provide for future public improvements or additional open space.

Building means any structure built for the shelter or enclosure of persons, animals, chattels, property or substances of an kind (not including fences), having one or more floors and a roof, and permanently affixed to the ground.

F.A.R. Part 77 means Federal Aviation Regulations pertaining to height and obstruction criteria within prescribed distances from an airport as these Regulations currently exist and as may be amended from time to time. Part 77 Regulations may also affect lands located outside the boundaries of the Renton Airport.

Lot means any development site located within Airport property which is legally described in a lease agreement.

Open Space means land utilized for recreational, landscaping and/or buffering purposes. Examples include park lands and landscaping treatments within non‐ residential developments. Open space credit for non‐residential developments shall be given tor treatments such as berms, sodded areas, trees, water features, and decorative rock treatments and, in some case landscaped plazas and atriums.

Right‐Of‐Way means an area or strip of land over which a rite of passage has been recorded for use by vehicles, pedestrians, and/or facilities of a public utility.

Setback means a distance from a curb, property line, or structure within which building is prohibited. Setbacks are building restrictions imposed on property owners.

Signs means any object or device containing letters, figures and/or other means of communication or part thereof situated outdoors or indoors, of which the effect produced is to advertise, announce, communicate, identify, declare, demonstrate, direct, display, and/or instruct potential users of a use, product and/or service.

Structure means anything which is constructed, or the use of which, requires permanent location on the ground, or attachment to something having a permanent location on the ground.

Use means the purposes for which land or premises or a building thereon is designed, arranged, or intended, or for which it is or may be occupied.

AGENDA ITEM #1. a)

5. Soliciting Interest in Airport Landside Properties and the Lease Application Process

5.1. Initiating the Process to Obtain a Lease or Operating Permit for Airport Landside Property

In order to use landside property at the Renton Municipal Airport, an applicant must establish a business address on the airport. Land and buildings may be leased from the City, or subleased from an existing tenant. In the case of subleasing from an existing tenant, the sublessee must obtain an Operating Permit from the City.

5.1.1. To obtain a land or building lease or an operating permit (for sublessees) at Renton Municipal Airport, a person shall submit a written application for review by the Airport Manager. As a prerequisite to occupancy, or the granting of commercial operating privileges at the Airport, any prospective commercial tenant must also submit a specific, detailed description of the intended commercial aeronautical activities and the means and methods employed to accomplish the proposed activities. The application shall be on a form provided by the City of Renton. The Renton Municipal Airport’s Regulations and Minimum Standards contain the minimum application information and should be referenced prior to initiation of an application. 5.1.2. Pre‐Submittal Meeting: Applicants are required to schedule a pre‐submittal meeting with the Airport’s Business Coordinator, or other member of management as determined by the Airport Manager. This meeting gives the applicant an opportunity to present his/her idea and to discuss available parcels and their designated land use. This also gives the applicant valuable general comments on the feasibility of the idea and an opportunity to identify any potential problems associated with it. The applicant will then be directed to contact all utilities pertaining to the proposed development parcel to obtain written assurances that the provider has the ability to serve the entire development. The written application will be given to the applicant at this point. 5.1.3. Following the required pre‐submittal meeting, the Concept Plan and Completed Application should be submitted to the Airport. After receiving an application and Concept Plan, the Airport Manager will determine whether the application, as submitted, contains the necessary information to continue the application process. 5.1.4. If the application is deemed complete and the criteria and requirements set out in this Supplement are met, the Airport Business Coordinator, or designated member of the Airport Management team will schedule the item for placement on the City of Renton Transportation Committee for a briefing.

AGENDA ITEM #1. a)

Prior to this meeting, the applicant must pay the appropriate application fee(s). The applicant may contact the Airport for the current City of Renton Fee Schedule; the Fee Schedule is also available online at https://edocs.rentonwa.gov/Documents/0/edoc/1059222/2017‐ 2018%20Fee%20Schedule.pdf. 5.1.5. This briefing will give the Transportation Committee an opportunity to review the Concept Plan and address any questions or concerns with Airport Staff. The following items will be required in the Concept Plan prior to the Transportation Committee meeting: To be considered complete and to be accepted by the Airport Manager for the Transportation Committee briefing, all of the items listed in this section should be organized into 5 individual packets in order to facilitate the process of providing each Transportation Committee Member information pertaining to the application: 5.1.5.1. Written Narrative: 5.1.5.1.a. Proposed Use Number of Structure(s); approximate size(s) of unit(s) and approximate maximum height of building(s) in feet; 5.1.5.1.b. Amount and function of proposed opens space, whether public or private; 5.1.5.1.c. Plan drawings which include the following minimum information; 5.2.5.1.c.1 Title or name of the development above the term, “Concept Plan”, 5.2.5.1.c.2 Vicinity map, scale, north arrow and date of preparation, 5.2.5.1.c.3 Location and legal description of lot, 5.2.5.1.c.4 Total area of open space, 5.2.5.1.c.5 Location and proposed use(s) of building areas to include range of dimensions and square footage, 5.2.5.1.c.6 Location and dimensions of required building and landscaping setbacks, as described within these Guidelines, 5.2.5.1.c.7 Parking area(s), verifiable based upon building square footage, 5.2.5.1.c.8 Designation and classification of any right‐of‐way (fee simple or easements), turning or acceleration and/or deceleration lanes, areas to be vacated, access points including locations and movements allowed (i.e. full turn/right turn only), 5.2.5.1.c.9 Topographic map depicting existing and proposed contours, 5.2.5.1.c.10 Utility drawings depicting existing and proposed locations,

AGENDA ITEM #1. a)

5.2.5.1.c.11 Internal site circulation and designation of public and private streets, 5.2.5.1.c.12 Proposed timetable for development plan, 5.2.5.1.c.13 A scale of preferably larger than 1”=500’ for concept plan and 1”=400’ for development plan, 5.2.5.1.c.14 Traffic Impact Study. A waiver may be granted for those projects which have little or no traffic impact. 5.1.5.2. Proposed Principal Lease Terms 5.1.5.3. Analysis of Lessee’s Financial Capacity

5.2 Requirements of the Federal Aviation Administration (FAA) Regarding Proposals.

5.2.1. Since any planned development at Renton Municipal Airport is on property purchased in part with a federal grant, the Airport notifies the FAA regarding any such planned development. FAA Form 7460‐1 is the official notification to the FAA of the proposed construction or alteration and the applicant should review the copy included in this Landside Leasing Policy and be ready to provide the information on or about the time submittal is made to the City of Renton for final approval of the Development Plan.

5.2.2. FAA approval must be obtained for projects which would not be considered “aeronautical uses” in accordance with Grant Assurances the Airport agreed to as a condition of accepting federal grants‐in‐aid.

5.2.3 Possible Obstructions to the Navigable Airspace Part 77 of the Federal Aviation Regulations establishes the maximum allowable heights of objects on or in the vicinity of airports. It does this by definition of “imaginary surfaces” which, if penetrated by an object, would be considered an obstruction. It is unlikely that the Airport would pursue any planned development which would penetrate the Part 77 imaginary surfaces.

5.2.4 Notice of Proposed Construction or Alteration. Assuming the project has the support of the Airport, FAA Form 7460‐1, Notice of Proposed Construction or Alteration (a non‐negotiable example is provided in these guidelines), is submitted by the Airport to the FAA. This form provides the FAA with specific information regarding the project, including the nature of the proposal, the description of the structure(s), the location of the structure(s), and the height and elevation to the nearest foot of both the site and structure(s).

6. General Leasing Policies

6.1. Lease Term Policy for Landside Development

AGENDA ITEM #1. a)

The total lease term for landside leases shall be no longer than 50 years or per current FAA guidance.

6.2. Rates & Charges Policy The Airport reserves the right to include in any lease agreement the provision for reasonable and periodic rent increases such as for example, annual flat rate increases. Further, whether or not stated in any lease agreement, the Airport reserves the right to charge and collect fees for Airport security and/or the enforcement of Airport’s rules, regulations, laws, standards, and policies.

6.3. Subleasing and Assignments Policy

6.3.1. There shall be no assignments or transfers of leasehold interest, buildings or facilities on the Airport without the written consent of the City Council. Such approval shall not be unreasonably withheld.

6.3.2. There shall be no subleases providing space to aeronautical service providers without an Operating Permit approved by the City Council. All sublessees seeking to initiate a commercial activity on the Airport must apply for and obtain an Operating Permit with the City.

6.3.3. Lessees providing hangar space for private and corporate aircraft storage may do so without the written consent of the City.

6.3.4. Tenants leasing City‐owned and operated hangar or tiedown space may not sublease their premises, except for short periods of time. Subleasing may only occur with the written consent of the Airport Manager, under extenuating circumstances as defined by the City, or as expressly permitted in the lease.

6.4. Reversion Policy

6.4.1. At the end of the Base Term of the lease, the lessee shall quit and surrender the premises in as good a condition as reasonable use would permit, normal wear and tear excepted. However, the City Council shall have the option of requiring the tenant to remove its improvements and return the property to its pre‐leased condition.

6.4.2. Tenants may apply to the City for an extension of the date of reversion of existing facilities to City ownership as established in the existing lease. There is no commitment by the City to grant a new lease, or extend the date of reversion. The City will examine the request and supporting documentation and make a decision based on the consideration given to

AGENDA ITEM #1. a)

the city for the extension as well as what is best for the City and its citizens and the Airport as a whole, at the City Council’s sole discretion.

6.4.3. For an application to be considered, the tenant must demonstrate that he/she has made and/or commits to making substantial investments in the leased area and has maintained the property in good condition under terms of the current lease. The applicant must show that the length of the requested new lease is needed to amortize substantial investments (maintenance costs shall not be considered as investments).

6.5. Standards and Guidance Policy

Lessees and sublessees on the Airport shall be required to comply with all applicable Airport Regulations and Minimum Standards, located at the Airport Office and City Clerk’s Office. Such Regulations and Minimum Standards may be updated and revised from time to time as appropriate.

6.6. Termination for Default or Pursuant to Airport Plans

6.6.1. In the event of default by the lessee, the City may, if it so elects, at any time thereafter, terminate the lease and terms thereof, by giving the lessee, in writing, a 30‐day notice of its intention to do so if the default is not corrected to the satisfaction of the City.

6.6.2. If the City Council makes a determination, in accordance with the Airport Master Plan and the FAA‐approved Airport Layout Plan, that the leased premises are needed for Airport development:

6.6.2.1. And where the Lessee has not constructed any permanent facilities on the premises, the City may offer the Lessee an alternative site if such a site is available on Airport property. If no alternative site is available OR the

Lessee chooses not to relocate on the Airport, the lease may be terminated by either party upon 30 days’ written notice.

6.6.2.2. And where the Lessee has constructed a permanent facility on the premises, the City may buy‐out the remaining base term of the lease upon 30‐days written notice of the City’s intent to do so. The base term buy‐out will be determined by amortizing the construction cost of the improvements on the premises in a straight‐line depreciation of the

AGENDA ITEM #1. a)

premises over the base term, adjusted for inflation based on the region’s consumer or construction price index.

6.7. Conformity with Laws, Ordinances, Rules and Regulations Policy

The lessee shall comply with all applicable local, state and federal laws, ordinances, rules and regulations, including all rules and regulations of the Federal Aviation Administration and the State and National Environmental Policy Acts. In addition, the lessee shall abide by and be subject to all City rules and regulations now in effect or enacted from time to time concerning the management, operation or use of the Airport.

6.8. Insurance Requirements Policy

6.8.1. All leases, operating permits and subleases will contain an insurance clause.

6.8.2. All leases, operating permits, and subleases will be subject to periodic adjustments of insurance requirements as imposed by the City of Renton.

6.8.3. Each lessee shall meet all State of Washington and the City of Renton insurance requirements and therefore maintain the types and amounts of insurance as specified in the lease or agreement.

6.9. Policy on Competitive Request for Proposal (RFP) Process

The City maintains the right, but not the duty, to seek competitive proposals for all leasehold space at Renton Municipal Airport. The proposal process will include public notices and information, and proposal documents will be available to the public at the Airport Office. All Requests for Proposals will be consistent with applicable City policies and be reviewed and evaluated by the City. A fair and objective evaluation process will be used to select the proposals that best meet the City’s interests based on the criteria listed in the proposal documents. The criteria may include, but not be limited to, the priority of uses listed below. The City Council will grant priority to competing offers for the use of space and/or facilities as follows:

6.9.1. Non‐aeronautical uses of aeronautical property are permitted only

AGENDA ITEM #1. a)

on an interim basis, with FAA approval, and with necessary zoning in place. Airport land is limited, and due to the nature of the Airport Deed and the classifications of land in the Airport Layout Plan, non‐aeronautical uses are likely to be rare.

6.9.2. New through‐the‐fence use (use that requires access to the Airport over the North and South Boeing bridges) is not allowed unless specifically approved by the City Council.

6.9.3. When space becomes available at the Airport, the City Council may issue a targeted request for proposal (RFP) for specific services or facilities that are consistent with the most current demand forecast, Airport Business Plan, and Airport Layout Plan. Responses inconsistent with the scope of the RFP will be deemed non‐responsive.

6.9.4. The City will review and score the proposals and refer the matter to the City Council for approval.

6.10. Policy on New Leases

The Airport is a mature facility, and the property is largely built out, and it may happen that demand for aeronautical leasehold facilities exceeds availability. Oversubscribed facilities will be managed using a process that is fair, transparent and uniformly applied.

6.10.1. Noncommercial facilities

If there is more demand for more T‐hangars and/or tiedowns than can be met, the City will:

6.10.1.1. For the facilities it owns and operates, maintain a waiting list in order of application, and offer facilities to those on the waiting list as they become available; and

6.10.1.2. For facilities owned or operated by others, encourage those owning or operating said facilities to maintain a waiting list in order of application, and offer facilities to those on the waiting list as they become available.

AGENDA ITEM #1. a)

6.10.2. Commercial facilities: the City will, where feasible, identify the aviation demand for services at the Airport and issue focused RFP’s for the services needed.

6.11. No Exclusion of Qualified Existing Lessees Policy

Current lessees shall not be excluded from submitting competitive proposals to the City.

6.12. Proposal Evaluations Policy

Each Request for Proposal will contain specific information regarding the Airport property currently being considered. All proposals will include requirements for detailed information from the respondents regarding the ability of the lessee to use the property as proposed. For commercial service providers, the required information will include but not be limited to:

6.12.1. Proposed capital investment;

6.12.2. Qualifications;

6.12.3. Experience in services being offered;

6.12.4. Experience of management personnel;

6.12.5. Proposed services and products; and

6.12.6. Financial ability.

6.13. City Discretion Policy

6.13.1. The City has the discretion to accept the most financially advantageous offer for a given leasehold.

6.13.2. The City has the discretion to accept a less financially advantageous offer if the City finds that the proposal furthers the interests of the aeronautical users of the Airport.

AGENDA ITEM #1. a)

6.13.3. The City has the discretion to require a City ownership interest, in whole or in part, in certain existing or new facilities. The City’s discretion extends to the choice of such facilities as well as to the manner in which such ownership is achieved (e.g. City construction or City acquisition).

6.14. Indemnification Policy

All leases, operating permits and subleases will contain an Indemnification and Hold Harmless Agreement in a form acceptable to the City Attorney.

6.15. Hazardous Materials

All leases, operating permits and subleases will contain a provision, in a form acceptable to the City Attorney, regarding contribution by lessee/sublessee towards environmental cleanup of hazardous materials released by lessee or sublessee.

7. Design Criteria

7.1. Codes All construction, alteration, moving, demolition, repair, and use of any building or structure within a lot will be subject to the provisions of the appropriate City of Renton Building Code and any other applicable code or ordinance. 7.1.2 Site Grading and Drainage In order to establish compatible grading and drainage relationships between buildings, parking and adjacent properties and to control drainage and erosion: 7.1.2.a A site plan indicating proposed grading and drainage must be approved by the City of Renton before any construction is initiated; 7.1.2.b Any grades, beaus, channels, and swales should be an integral part of the grading paved surface design; 7.1.2.c Paved area grades shall not exceed two percent slope and shall not be less than one half of one percent slope; 7.1.2.d Drainage facilities and structures shall be designed and maintained to accommodate all storm water generated by the lot in accordance with RMC 4‐6‐ 030 Drainage (Surface Water) Standards. These requirements may be updated as necessary. Routine inspections and maintenance provoked by said inspections shall be coordinated through the City of Renton.

AGENDA ITEM #1. a)

7.1.3 Erosion Prevention during Construction Permanent and temporary erosion control measures for each parcel governed by this document will be designed, constructed and maintain in conformance with RMC 4‐6‐030 Drainage (Surface Water) Standards. These requirements may be updated as necessary. 7.1.4 Lot Aesthetics In order to create a compatible and continuous relationship between site landscape areas and the adjacent lots; to maintain a pleasant appearance in all areas not covered by building or parking; and to enhance the existing character of the lot:

7.1.4.a A landscape irrigation layout covering the area not occupied by building structures or pavement must be submitted to the Airport; 7.1.4.b Landscaping in accordance with the plans submitted must be installed before occupancy of the building. If seasonal conditions do not permit planting, interim erosion control must be approved by the Airport in writing; 7.1.4.c Plant materials must be approved by the Airport; 7.1.4.d All parking areas which front on a street should be screened by a landscaped berm of a maximum height of three feet as measured from the adjacent parking lot surface. Berm slopes must not exceed 2:1 with a three foot (3’) wide flat crown; 7.1.4.e Landscaping within the public right of way shall conform with City of Renton guidelines.

7.1.5 Buffers and Fences In order to provide security and a visual buffer of unsightly areas such as storage and parking areas: 7.1.5.a No fence or wall of any kind shall be constructed unless specifically approved by the Airport in writing; 7.1.5.b Objects such as water towers, storage tanks, processing equipment, cooling towers, communication towers, vents, and any other structures or equipment shall be architecturally compatible or effectively shielded from view from any street and shall be approved, in writing, by the Airport before construction or erection of said structures or equipment; 7.1.5.c Screening fences and buffer areas shall be of a height at least equal to that of the material or equipment being stored.

7.1.6 Loading and Service

AGENDA ITEM #1. a)

In order to provide a functional and aesthetically pleasing method of handling loading and service areas and vehicles: 7.1.6.a All loading and unloading of vehicles should be conducted on each lot; 7.1.6.b Loading areas, loading docks, parking areas, and service areas should be planned so that one use does not interfere with another; 7.1.6.c No loading docks or service areas shall be visible from the street. Use of landscaped buffer is recommended. 7.1.7 Pedestrian Circulation

In order to allow for safe and convenient movement of pedestrians throughout the lot and improvements: 7.1.7.a Sidewalk — five (5) foot minimum width; 7.1.7.b Provide convenient pedestrian access from all parking areas to building entrances. 7.1.8 Exterior Lighting

In order to create a functional, pleasing, and coordinated relationship of lighting, signs, and plant material for aesthetics, security and safety: 7.1.8.a A lighting plan describing the exterior illumination layout and fixture selection must be approved by the Airport in writing prior to construction; 7.1.8.b Lights shall not be placed to cause glare or excessive light spillage on neighboring sites; 7.1.8.c All parking lot and driveway lighting should provide relatively uniform illumination. Accent illumination is recommended at key points such as entrances, exits, loading zones and drives; 7.1.8.d Concealed light sources are recommended; 7.1.8.e Security light sources shall be kept in operation all night; 7.1.8.f Lighting placement and strength should not interfere with or hinder aircraft movement or traffic; 7.1.8.g Exterior lighting fixtures must be approved by the Airport.

7.1.9 Maintenance

In accordance with a lease agreement and in order to ensure that all facilities are maintained in a neat and orderly manner:

AGENDA ITEM #1. a)

7.1.9.a Each lessee shall maintain its buildings, landscaping, drives, parking lots, or other improvements located upon the lot in good an sufficient repair, and shall keep such premises painted, lawns cut, shrubbery trimmed, windows glazed and otherwise maintain the lot and improvements in an aesthetically pleasing and first‐class manner; 7.1.9.b Any improvements, planting, driveway, or parking lot surface which are damaged by the elements, by vehicles, fire, or any other cause shall be repaired as promptly as the extent of damage will permit; 7.1.9.c Buildings which are vacant for any reason shall be kept locked, windows shall be glazed in order to prevent entrance by vandals, and maintenance shall continue as if occupied; 7.1.9.d Grounds shall be maintained in a safe, clean and neat condition free of rubbish and weeds. Lawns shall be kept in a mowed condition. Roads and pavements shall be kept true to line and grade and good repair. Drainage gutters or basins shall be kept clean and free of any obstacles. Fences shall be maintained in good condition. Damage to plantings created by vandalism, automobile, or acts of nature shall be corrected within 30 days. Undeveloped areas for future use or expansion shall be maintained in a ground cover specified in the planting list and trimmed and mowed only as necessary to ensure a neat appearance. Irrigation of undeveloped areas is not required; 7.1.10 Buildings

7.1.10.a No building may penetrate any surface as defined in F.A.R. Part 77; 7.1.10.b Exterior building materials must be compatible with adjacent buildings and shall not affect aircraft operations. As a general rule, reflective glass and other materials will not be approved; 7.1.10.c All exterior storage and service areas shall be screened by landscaping or architectural fencing. All trash shall be kept in enclosed, covered containers and screened from view; 7.1.10.d No mobile home, temporary office, or storage shed shall be installed or maintained on a lot without specific written approval from the Airport for a specified period of time;

7.1.10.e No building, or any use of a building, will be permitted on any lot that adversely affects another lot, the Airport, or violates a law of the United States, the State of Washington, the City of Renton or any minimum standards set forth by the Airport.

7.1.11. Storage Areas

AGENDA ITEM #1. a)

In order to shield stored materials from public view: 7.1.11.a No articles, goods, materials, machinery, equipment, plants, animals or similar items should be stored or kept in the open, or exposed to public view, within the area between building setback line and line along the street; 7.1.11.b No outside storage or operations of any kind shall be permitted on any lot, unless such activity is visually screened from the street in a manner approved by the Airport. No outside storage shall extend above the top of such screening; 7.1.11.c Any article, good, or material to be stored other than in an enclosed covered building shall be enclosed either with an architectural screen fence at least six feet in height or landscaped planting or both as directed and approved by the Airport; 7.1.11.d No storage shed or peripheral buildings other than the main building on each lot shall be permitted except during construction or as may be approved for special use.

8. Final Approval Process After authorization by the Administration, the Airport Manager will initiate the legislative approval process by drafting an Agenda Bill and scheduling the matter to be heard at the next available City Council meeting. The City Council may choose to send the lease or operating permit to the Transportation Committee for further consideration. The Transportation Committee will recommend approval or denial of the lease or operating permit to the City Council. The City Council will then determine whether the lease or operating permit should be approved or denied.