FAIRHOPE AIRPORT AUTHORITY (“Authority”), an airport authority formed pursuant to § 4-3-40, et seq., Ala. Code 1975, is soliciting applications for ground leases of certain ground space at H. L. “Sonny” Callahan Airport (“Airport”) in Fairhope, Alabama.  The purpose of the ground lease is to allow tenants to use certain ground space on the East Side of the Airport for storing and housing aircraft and for purposes ancillary to the storage and housing of aircraft (including aircraft access, aircraft parking, ground vehicle parking, storage of aircraft parts, administrative support facilities, and equipment and supplies for aircraft maintenance.

This Notice covers lease space for five (5) individual hangar pads on the East side of the Airport, identified as pads “P10,” “P11,” “P12,” “P13,” and “P14” on the Authority’s East Terminal Area Layout. The hangar pads are approximately 261 feet by 150 feet (0.89 acres). A legal description and a survey of the East Hangar Pad area is available from the Authority to any person interested in applying for ground lease. Applicants are advised that Pads P12, P13, and P14 do not yet have paved access for ingress and egress. Paved access to these three (3) pads is dependent largely upon future funding from the Federal Aviation Administration through its Airport Improvement Program (AIP).

All applications for ground leases shall be submitted IN WRITING to the Authority at the address specified below, using the form prescribed by the Authority for this purpose. The Authority will consider applications received in a timely manner according to the deadlines prescribed herein.


Terms and Conditions

1. The ground rent for each hangar pad shall be $0.27 per square foot per year.

2. The Authority currently imposes a minimum fuel flowage fee of $0.07/gallon on all fuel consumed by ground tenants.  This amount is subject to change (and probably will increase) during the term of any ground lease.

3. The minimum allowable hangar size shall be 6,000 square feet. The minimum cost of hangar construction shall not be less than $500,000. All capital improvements constructed by the tenant shall become property of Fairhope Airport Authority following the expiration of the lease term (including any extensions, if applicable).

4. All building and fuel delivery systems must meet or exceed the Minimum Standards of the Fairhope Airport Authority and are subject to review and approval by the Authority’s Architectural Review and Construction Standards committee.

5. Any building and fuel delivery systems are required to be reviewed and permitted by the

City of Fairhope’s Building and Permitting Department. Those requirements include, without limitation, a minimum 25-foot setback of all hangar construction from the boundary of the leased area.

6. The application must identify which of the five (5) East Side Hangar pads is covered by the Application.

7. The Prospective Tenant has sixty (60) days to negotiate and execute a ground lease. The Prospective Tenant shall then have eighteen (18) months from the execution of the ground lease to complete construction of the hangar, which shall be determined by the issuance of a certificate of occupancy from the City of Fairhope Building Department. Application shall submit a deposit in the amount of $10,000, which may be credited to future lease payments of Tenant, or refunded upon request following completion of hangar construction. The deposit shall not be refunded if Tenant executes a ground lease but fails to complete construction of a hangar.

8. Utilities are accessible from the access road near the East Side Hangar pad sites, including gas, water, sewer, electricity, and communication. The hangar pads themselves may require a geo-technical review and additional fill material for the construction of the hangars. The Prospective Tenant bears sole responsibility for arranging connection of all utilities with the utility owner, subject to the Authority’s approval. Tenants bear sole responsibility for continued costs of utilities.

9. A Prospective Tenant that proposes to build a hangar larger than 8,000 square feet may negotiate with the Authority for the use of one of two self-contained fuel farms (12,000-gallon capacity) within the proposed clustered fuel farm as set forth on the East Terminal Area Layout. Actual construction of the clustered fuel farm is contingent upon future funding from the FAA through the AIP. The Prospective Tenant shall provide a fixed baseline for annual fuel usage (expressed in gallons per year) and shall be obligated to pay the Authority at the prevailing fuel flowage fee for the fixed baseline amount whether or not such fuel is actually consumed by the Prospective Tenant. Prospective Tenant shall remain obligated to pay the fuel flowage fee for any fuel purchased in excess of the fixed baseline amount. Any deficiency (that is, the amount due if tenant fails to meet the fixed baseline amount during the lease year) shall be paid not later than the end of the month of the following lease year.

10. The Authority requires all tenants to have and to keep in force the following insurance: worker’s compensation; commercial general liability; automobile liability; umbrella liability; aircraft liability; environmental impairment; and property insurance. The Authority shall be added as an additional insured on all policies. The full insurance requirements are specified in the form of Ground Lease, and Applicants are advised to familiarize themselves with the insurance requirements prior to making application for ground lease with the Authority.

11. The hangar pads also include space for apron and automobile parking.

12. Acceptance of an Application by the Authority does not obligate the Authority to consummate a ground lease with the Prospective Tenant.

13. A form of the ground lease is available from the Authority upon request. Applicants are specifically advised that the base ground rent shall increase every five years by 12.5%.

14. The Authority shall not be liable to any Prospective Tenant for the failure to mutually agree upon the terms of a ground lease.

15. All Applicants must use the Authority’s “Hangar Lease Application.” Applications must be signed and dated by a duly authorized representative of the Prospective Tenant who is authorized to negotiate contracts and to bind the Prospective Tenant to contracts. Applications must also state the representative’s name, title, telephone number, and e-mail address; and the Prospective Tenant’s legal name, address, and telephone number.

16. The Authority will not accept any applications with qualifications or limitations different that those specified in this Notice. By applying, the Prospective Tenant agrees to participate in the selection process as described in this Notice.

17. An application received by the Authority may become a matter of public record and may be subject to public inspection.  The application shall become property of the Authority. The Authority makes no representation or warranty of any kind with respect to maintaining the confidentiality of any information submitted in response to this Notice of Availability.  The Authority further disclaims any liability arising from or related in any way to the disclosure of any such information.  By applying in response to this Notice the Prospective Tenant shall be deemed to have waived and released the Authority from any such liability.

18. No representations, negotiations, decisions, or actions shall be relied upon by the Prospective Tenant as a result of any discussions with any Authority official or consultant.  Only those instructions provided in written form from the Authority may be relied upon. Further, if there is any conflict between any written instruction from the Authority and this Notice, then this Notice shall control.

19. The Authority shall not be liable or responsible for any pre-contract costs incurred by Prospective Tenants participating in the selection process, including, but not limited to, any costs associated with applications submitted in response to this invitation.  Further, the Authority shall not be liable or responsible for any costs incurred by the successful Prospective Tenant after the application is awarded and prior to the consummation of the ground lease between the successful Prospective Tenant and the Authority.

20. All questions, requests for information (including the Authority’s East Terminal Layout Plan, the Airport “Minimum Standards,” and/or sample form of ground lease), and requests for clarification or interpretation regarding this Notice must be made in writing by e-mail and sent to the Authority’s Chairman, Mr. Joe McEnerney, as follows:

Fairhope Airport Authority

Attn: Joe McEnerney, Chairman  

P.O. Box 429  

Fairhope, AL 36533


All answers to questions, clarifications and interpretations will be made in writing by e-mail and sent to each Prospective Tenant who has applied for a ground lease.

21. This Notice is open to all persons, firms, or entities, which may include officers, agents, employees, or representatives of the City of Fairhope or the Authority.  If any officer, agent, employee, or representative of the City of Fairhope, of the Authority, of one or more of the City’s boards or committees, or the Authority’s boards or committees, applies according to this Notice, then the submittal of such application shall be disclosed to all other Prospective Tenants.  

22. Anything in this Notice to the contrary notwithstanding, the Authority reserves the right at all times and in its sole and absolute discretion, to do any one or more of the following: (i) cancel this invitation at any time; (ii) reject any and all applications proposals that are submitted; or (iii) accept any or all of the application submitted.  

23. The Prospective Tenant shall obtain and deliver a performance bond as well as a labor-and-materials bond for 100% of the project cost from a bonding company with at least an “A” rating from A. M. Best rating service before obtaining a building permit from the City of Fairhope. The bonds must be within 10% of the estimated value of the building submitted in the application to the Airport Authority. The Authority expressly reserves the right to approve of or to disapprove any bond(s) furnished by a Prospective Tenant. In the event of a default by Tenant, the ground lease specifies that the bonds shall automatically be assigned to the Authority.

24. The Authority will begin receiving sealed applications on Friday, March 22, 2019, and will continue to accept applications until Friday, April 5, 2019. The Authority will make a tentative selection of the Prospective Tenants on April. 16, 2019 at its regular Board meeting. Applications will be accepted by email or fax. All applications must clearly identify “APPLICATION FOR EAST SIDE HANGAR PAD” on the envelope, along with the name and address of the Prospective Tenant. The Prospective Tenant shall include an original and 3 copies. The application shall be delivered as follows:

If by Courier:
Fairhope Airport Authority  
Attention: Chairman
161 North Section Street  
Fairhope, AL 36532  

If by U.S. Mail:  
Fairhope Airport Authority
Attention: Chairman  
P.O. Box 429  
Fairhope, AL 36533

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