1. (1) All persons applying for a lease for commercial aeronautical activity at a State-owned airport must demonstrate the financial capability and responsibility to:

   1. (a) Initiate proposed commercial aeronautical activities;
   2. (b) Construct proposed improvements; and
   3. (c) Provide working capital to perform proposed activities for the lease term.

2. (2) The demonstration of financial capability shall include:

   1. (a) Projected cash flow and profit-and-loss calculations for the first five (5) years of the proposed operation;
   2. (b) A three-year historical profit-and-loss statement (if applicable); and
   3. (c) A current (within 90 days) balance sheet.

3. (3) A prospective Lessee who will be constructing lease property improvements shall provide the Department evidence of financial capacity in one of the following forms:

   1. (a) A performance bond in the amount equal to the cost for constructing the proposed improvements, which may be supplied by a contractor;
   2. (b) An irrevocable letter of credit guaranteeing funds to complete the project;
   3. (c) An escrow agreement administered by a title and escrow company; or
   4. (d) A trust administered by a commercial bank.

4. (4) The prospective Lessee shall furnish the Department with a statement of its past experience in providing the specified commercial aeronautical service for which the application is being made, including:

   1. (a) Résumés of management individuals who will be directly responsible for the proposed commercial operation; and
   2. (b) Business, financial and managerial references.

Statutory/Other Authority

ORS 835.035, 835.040 & 835.112

Statutes/Other Implemented

ORS 935.035, 935.040, 835.112 & 836.055

History

AVIA 1-2002, f. & cert. ef. 9-3-02