COMMERCIAL ACTIVITY - LEASE OR LICENSE AGREEMENTS

SJ-MC tit. 25, ch. 25.08, pt. 13

in effect

San José Municipal Code § 25.08.1300 Other commercial activity.

25.08.1300 - Other commercial activity. A. Commercial activities on the airport, other than those specifically addressed elsewhere in this title, for which the use of airport land, structures, or other premises on the airport is necessary or desirable, may be authorized pursuant to lease or license agreements if the director determines: 1. That adequate space is available to accommodate such activity consistent with the space requirements of other airport uses; 2. That such activity is necessary, desirable, or appropriate for operation of the airport; and 3. That the proposed lease of space would conform to the most recent airport layout plan for the airport, a copy of which shall be on file with the city clerk. B. The provisions of this Section 25.08.1300 and of Sections 25.08.1320, 25.08.1340, 25.08.1350, and 25.08.1360 shall apply to any lease agreements for land, structure, or other premises on the airport other than leases authorized pursuant to Sections 25.08.300 or 25.08.500. (Ord. 25529.)

San José Municipal Code § 25.08.1310 Fees and charges.

25.08.1310 - Fees and charges. Tenants or licensees shall pay such rental fees and charges as are imposed or established by resolution of the city council or provided in the terms of the lease or license. (Ord. 25529.)

San José Municipal Code § 25.08.1320 Procedure and factors for consideration.

25.08.1320 - Procedure and factors for consideration. A. Proposals for the lease of land, structures, or other premises on the airport shall be solicited from all persons, firms, organizations, or other legal entities known by the director to be potentially interested in submitting a proposal. A minimum of three (3) competitive proposals shall be obtained, if practicable, for the lease of land, structures, or other premises on the airport. B. Land, structures, or other premises on the airport shall be leased to the responsible proposer who submits the proposal determined by the city to be the most advantageous, considering, but not limited to, such factors as revenues to the airport, services to be provided by the proposer to the public and other airport users, investment in facilities to be constructed on the land or other premises, consistency of the proposed use of airport land or premises with operation of the airport, and any such other factors as are relevant to the proposed activity and to the location of the proposed activity on the airport. C. The city is not required to, but may, solicit formal bids to lease land, structures, or other premises on the airport on an optional basis, pursuant to the terms, procedures, and conditions set forth by the city in the bid package. D. Notwithstanding the foregoing, a lease of land, structures, or other premises on the airport may be awarded after negotiations with a single provider if: 1. The city council, in its sole discretion, authorizes the negotiation of the lease with a single provider and also authorizes or approves the execution of the lease; or 2. The director, when executing leases on behalf of the city pursuant to Section 25.08.1340 below, makes a determination that the land, structure, or other premises to be leased is limited as to its potential uses or as to the revenues which could be generated by the lease, such that the city would not benefit from solicitations of proposals; or 3. The director, when executing leases on behalf of the city pursuant to Section 25.08.1340 below, makes a determination that the services to be provided by the tenant to airport users or the general public are patented, unique, or available only from one (1) provider. (Ords. 25529, 28017.)

San José Municipal Code § 25.08.1330 Licenses - Factors for consideration.

25.08.1330 - Licenses - Factors for consideration. The city may issue licenses which grant to the licensee personal permission for the use of airport land, structures, or other premises in the conducting of commercial activity at the airport. Such license agreements shall not be deemed to grant property interests in the areas which the licensee is authorized to use or occupy and may, at the discretion of the city, be nonassignable and terminable at will. (Ord. 25529.)

San José Municipal Code § 25.08.1340 Authority to execute.

25.08.1340 - Authority to execute. A. In addition to such other authority as may be specifically provided elsewhere in this title, the director is hereby authorized to execute, on behalf of the city, any lease or license agreement of land, structures, or other premises on the airport if: 1. The total monetary value received by the city from such lease or license agreement does not exceed two hundred fifty thousand dollars ($250,000.00); or 2. The term of such lease or license agreement where the total monetary value received by the city exceeds two hundred fifty thousand dollars ($250,000.00) is for three (3) years or less, including the term of any extensions or renewals of such lease or license agreement for which either the city or the tenant or licensee has the option or right to renew under the terms of the lease or license agreement. B. Lease or license agreements shall be approved as to form by the office of the city attorney prior to execution by the director. C. The city council shall approve the execution of any lease or license agreement required pursuant to this section if the total monetary value received by the city exceeds two hundred fifty thousand dollars ($250,000.00) and the term of the lease or license agreement is greater than three (3) years. D. The city council shall also approve the execution of amendments to extend the term of any lease or license agreement required by this section on behalf of the city beyond three (3) years, if the total monetary value received by the City from such lease or license agreement from the original effective date through the extended term exceeds two hundred fifty thousand dollars ($250,000.00). (Ords. 25529, 28017.)

San José Municipal Code § 25.08.1350 Bonds and insurance.

25.08.1350 - Bonds and insurance. A. Leases or licenses of land, structures, or other premises on the airport shall require the tenant to maintain liability insurance in amounts and under terms and conditions considered necessary or desirable by the city risk manager. B. Such lease or licenses shall also contain such requirements concerning bonds as may be considered necessary or desirable by the city attorney. (Ord. 25529.)

San José Municipal Code § 25.08.1360 Other terms and conditions.

25.08.1360 - Other terms and conditions. A. Leases or licenses of land, structures, or other premises on the airport shall contain such terms, provisions, and conditions that the city council, or the director if the director is authorized to execute the lease or license, considers necessary or desirable to protect the safety and promote the convenience of the city and the general public. B. Leases of land, structures, or other premises on the airport shall require the city's consent to any sublease or assignment of the lease or leased premises. The director is hereby authorized to consent to the sublease or to the assignment if the director is authorized to execute the principal lease, or if otherwise authorized to consent to the sublease or assignment by the city council. If the director is not so authorized, then the consent of the city council to such sublease or assignment shall be required. C. A license may provide that no assignment is permitted, or if permitted with consent, consent shall be obtained as provided in this subsection. (Ord. 25529.)

San José Municipal Code § 25.08.1370 Licenses - Parking or storage of general aviation aircraft.

25.08.1370 - Licenses - Parking or storage of general aviation aircraft. Notwithstanding provisions elsewhere in this title, the director is authorized to issue a revocable license for parking or storage of general aviation aircraft on airport land or premises for renewable monthly or thirty-day terms, without limitation as to the number of renewable monthly or thirty-day terms, or as to issuance of a subsequent license to the same licensee. (Ord. 25529.)

Source: City of San José, Municipal Code (Municode Library, library.municode.com)URL: https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT25AI_CH25.08COAC_PT13COACEALIAGFetched: 11/1/2026