Chapter 2.52
LEASING OF REAL PROPERTY
Sections:
2.52.010 Property available for leasing.
2.52.070 Adjustments of rental.
2.52.080 Transfer of lessee’s interest.
2.52.100 Improvements and chattels.
2.52.110 Inspection of leased premises.
2.52.120 Easements and rights-of-way.
2.52.130 Condemnation of premises – Lease termination.
2.52.010 Property available for leasing.
A. All real property, including tide, submerged or shore lands, which the borough owns, or in which the borough has right, title and interest, or to which the borough may become entitled, may be leased as provided in this chapter. The term “property” as used in this chapter includes any and all interests in real property.
B. If the property desired to be leased is unsubdivided, then the party desiring lease shall prepare at its own expense a subdivision plat and submit such request to the planning commission for approval, prior to assembly action.
C. All requests for lease of property shall be submitted to the borough planning commission for review and comment prior to assembly action. (Ord. 88-10 § 2, 1988; Ord. 87-18 § 1 (7.08.010), 1987)
2.52.020 Term of lease.
No lease shall be for a term of more than 21 years unless the assembly shall determine from the purpose, use of the premises, and nature of improvements which may be placed thereon that a longer term would benefit the borough and would be consistent with borough planning. A lease having a term of greater than five years shall first be approved by the assembly. Any renewal period or option to renew the lease period shall be included in the term of the lease in computing the five-year period of time. (Ord. 87-18 § 1 (7.08.020), 1987)
2.52.030 Appraisals.
No property shall be leased or a renewal lease issued unless the property to be leased has been appraised by the borough within one year prior to the date contemplated for the commencement of the lease. No appraisal is required if the fair rental value of the property does not exceed $3,000 per year and term of the lease is one year or less, or if the property has been assessed by the borough tax assessor during the year in which the property is to be leased. An independent appraisal shall not be required unless directed by the assembly, or otherwise required by this chapter. (Ord. 87-18 § 1 (7.08.030), 1987)
2.52.040 Lease auction.
A. Unless otherwise provided in this chapter, property shall be leased to the highest responsible bidder at a lease auction.
B. Upon good cause shown, the assembly may waive this requirement as part of the approval of the lease pursuant to NABC 2.52.050. (Ord. 87-18 § 1 (7.08.040), 1987)
2.52.050 Lease procedures.
The assembly by resolution shall approve all borough leases under this chapter. (Ord. 87-18 § 1 (7.08.050), 1987)
2.52.060 Fair rental value.
Property shall be leased for a fair rental value. Fair rental value is the rental computed from the appraised fair rental value of the property and means the highest price described in terms of money for which the property would rent, if exposed for rent for a reasonable time in the open market, for the use permitted by the borough. With approval by the assembly, the lease of property may be made for a rental less than the fair rental value to a state or federal agency, state political subdivision, borough agency, school district, or nonprofit organization as may be determined by the mayor to be fair and proper, considering the public interest and the nature of the public use or function of the leased premises. Fair rental value shall not be required where the property interest of the borough is subject to any term or condition restricting or limiting the ability of the borough to obtain the fair rental value of the property. (Ord. 87-18 § 1 (7.08.060), 1987)
2.52.070 Adjustments of rental.
A lease having a term for more than two years shall provide for adjustment of rentals at specified intervals during the term of lease, and the intervals shall be two years unless the lease provides for a longer interval, not to exceed six years. This section shall be incorporated in each lease by reference and enforceable as if fully set forth therein. (Ord. 87-18 § 1 (7.08.070), 1987)
2.52.080 Transfer of lessee’s interest.
A lessee may sublease or assign the lease only upon approval of the transfer by the assembly in writing. (Ord. 87-18 § 1 (7.08.080), 1987)
2.52.090 Renewal of lease.
The renewal or extension of the lease shall be considered as a new lease unless renewal or extension is provided for in the lease. Upon a showing of hardship, or for good cause, the mayor may, at his option, renew or extend the lease for a period not to exceed one year without notice, auction or assembly approval. (Ord. 87-18 § 1 (7.08.090), 1987)
2.52.100 Improvements and chattels.
The lease shall provide the terms, conditions and limitations of the removal or reversion of improvements or chattels upon the lease premises after termination of the lease. The retiring lessee may, with the consent of the mayor, sell the improvements to the succeeding lessee. If the improvements or chattels are not removed within the time set forth in the lease, the improvements may, upon reasonable notice to the lessee, be sold at public sale to be provided by regulations of the mayor. Proceeds of the sale shall be first applied to the borough’s cost and expenses of maintaining, removing and selling the improvements and chattels and to rentals for the period of nonremoval. The borough may bid at the sale and may be credited with the value of the borough’s costs, expenses and rentals due resulting from the nonremoval of the improvements or chattels. The borough shall have all other rights, both legal and equitable, any other purchaser would have or acquired by reason of the sale. (Ord. 87-18 § 1 (7.08.100), 1987)
2.52.110 Inspection of leased premises.
The lessee shall allow an authorized representative of the borough to enter the leased premises for inspection at any reasonable time. (Ord. 87-18 § 1 (7.08.110), 1987)
2.52.120 Easements and rights-of-way.
The borough expressly reserves the right, without compensation or adjustment in rentals to the lessee, to grant surface, underground or overhead utility easements or rights-of-way in or upon the leased property, if the exercise of the right will not unreasonably interfere with lessee’s improvements placed upon the property and with the lessee’s use of the property. (Ord. 87-18 § 1 (7.08.120), 1987)
2.52.130 Condemnation of premises – Lease termination.
Upon condemnation of the premises or any part thereof by the state, or federal government or agency thereof, including inverse condemnation, the lease shall terminate without any liability to the borough. The borough shall not be liable in damages or pay any compensation to the lessee as a result of the condemnation terminating the lease. (Ord. 87-18 § 1 (7.08.130), 1987)
2.52.140 Lease rental credit.
When authorized in writing by the mayor prior to the commencement of any work, the lessee may be granted credit against current or future work, provided the work, accomplished on or off the leased premises, results in increased valuation of the leased premises or of other borough-owned property. The authorization may stipulate the type of work, standards of construction and maximum allowable credit for the specific projects. (Ord. 87-18 § 1 (7.08.140), 1987)
2.52.150 Conditional lease.
The borough may issue a conditional lease on property it reasonably expects it will own or will acquire title to, prior to the actual receipt of title. Leases issued on this conditional basis may be terminated in whole or in part in the event that the borough is denied title to the property under lease. Prepaid lease rentals on property to which title is denied the borough shall be refunded. The borough shall not be liable for any claim or damages that may be done to the property by the lessee, or liable for any claims of any third party or the lessee, or for any claims that may arise from ownership. In the event the borough does not receive title to the property under lease, the conditional lease shall then have the same standing, force and effect as a nonconditional lease issued under this chapter. (Ord. 87-18 § 1 (7.08.150), 1987)
2.52.160 Mayor regulations.
The mayor may provide by regulations for the procedures and form as to applications, surveys, appraisals, auction, bidding, form and substance of lease, termination, forfeiture or any other matter involving the leasing of borough property to implement the intent and purpose of this chapter. The absence of a regulation shall not invalidate any auction procedure or lease executed or to be executed by the borough where the requirements of the chapter have been otherwise satisfied. (Ord. 87-18 § 1 (7.08.160), 1987)