Or. Admin. Code § 738-015-0010

Current through Register Vol. 63, No. 11, November 1, 2024

Section 738-015-0010 - Commercial Aeronautical Lease Applicant's Financial Responsibility and Experience

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

(a) Initiate proposed commercial aeronautical activities;

(b) Construct proposed improvements; and

(c) Provide working capital to perform proposed activities for the lease term.

(2) The demonstration of financial capability shall include:

(a) Projected cash flow and profit-and-loss calculations for the first five (5) years of the proposed operation;

(b) A three-year historical profit-and-loss statement (if applicable); and

(c) A current (within 90 days) balance sheet.

(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:

(a) A performance bond in the amount equal to the cost for constructing the proposed improvements, which may be supplied by a contractor;

(b) An irrevocable letter of credit guaranteeing funds to complete the project;

(c) An escrow agreement administered by a title and escrow company; or

(d) A trust administered by a commercial bank.

(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:

(a) Résumés of management individuals who will be directly responsible for the proposed commercial operation; and

(b) Business, financial and managerial references.

Or. Admin. Code § 738-015-0010

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

Stat. Auth.: ORS 835.035, ORS 835.040, ORS 835.112

Stats. Implemented: ORS 935.035, ORS 935.040, ORS 835.112, ORS 836.055