A. The department, in the operation and maintenance of the Grand Canyon national park airport, or a city, town or county may lease land owned by it or under its control to a person, partnership, association or corporation for airport or air terminal purposes pursuant to a lease agreement that:

1. 1. Provides that title to all buildings, structures and improvements added to the leased premises by the lessee vests in the department, city, town or county in the manner and subject to the restrictions contained in the lease.
2. 2. As it exists or as it may be amended, is declared to be binding and effective pursuant to its terms.
3. 3. Is for a term of not more than fifty years and may contain an option to renew the lease for an additional period of not more than fifty years.
4. 4. Is let to the highest and best bidder.

B. During the lease period, the department or a city or town with a population of less than forty thousand persons as determined by the most recent United States decennial census or the most recent special census as described in section 28-6532 or a county may extend the existing lease for airport or airport terminal purposes with a person, partnership, association, corporation or political subdivision for an additional period of not more than fifty years after notice and a public hearing. The lease and any extensions may not cumulatively exceed the maximum term allowed under subsection A of this section. The department or a city, town or county shall:

1. 1. Publish a notice of intent to consider an extension of the lease twice in a daily or weekly newspaper of general circulation in the county. The notice shall contain the name of the lessee, a description of the leased property, the current expiration date of the lease, the amount of time the lease is proposed to be extended and the date, time and place of the public hearing on the extension request.
2. 2. Publish the first notice not more than thirty days before the date set for the public hearing.
3. 3. Post a copy of the notice of the intent to extend the lease on the leasehold site and at five public places in the county, including on the airport or airport terminal property and on the governing body's website.
4. 4. Hold a public hearing on the extension request.
5. 5. Grant the extension of an existing lease only if the department or a city, town or county determines that the extension request is in the best interest of the state, city, town or county and on a majority vote of the governing body acting on the request for an extension.
6. 6. Grant a second and any subsequent extension request pursuant to this subsection only on the affirmative vote of at least two-thirds of the governing body that is acting on the request for an extension. The reimbursement to the city, town or county for the lease extension executed under this subsection shall not be less than the appraised rental value of the real property, except that the city, town or county may consider any capital improvements by the lessee in determining the final reimbursement rate of the lease.