A lease for highway assets shall be in written form approved
by the director and shall include:
(1) information necessary to contact the party responsible
for developing and operating the leased asset;
(2) the amount of the rent, any required deposits,
the term of the lease, and the method of payment of the rental amounts
or deposits;
(3) a statement of the authorized use of the leased
asset;
(4) a statement that any change in the authorized use
of the leased asset is subject to prior written approval of the director;
(5) a detailed description of the asset to be leased,
which may be three-dimensional where vertical limits are needed;
(6) the general design for the use of the leased asset,
including any improvements to be constructed, any maps, plans, or
sketches necessary to set out the pertinent features in relation to
any highway facility and a description of any temporary improvements
to be provided by the lessee;
(7) a statement that any significant revision in the
design of the improvements described in subsection (d) of §21.605
of this subchapter is subject to prior written approval by the district
engineer;
(8) a statement that the department shall have the
right to approve all construction and plans for construction on the
leased asset;
(9) permission for the employees of and any representatives
authorized by the department to enter the leased asset for the purpose
of inspection, maintenance, or reconstruction of highway facilities
as necessary, or to determine compliance with the terms and conditions
of the lease;
(10) a statement that any improvements located within
the leased asset will be maintained by the lessee at the lessee's
sole expense, so as to assure that any structures in the area within
the highway asset will be kept in good condition, both as to safety
and appearance, and that maintenance will not interfere with highway
use;
(11) a statement that in the event the district engineer
determines that the responsible party has failed in its maintenance
obligation, the department has the right to enter the leased asset
to perform such work, all at the expense and liability of the lessee;
(12) a statement requiring forfeiture of deposits,
payment to the department of litigation costs, or any other expense
incurred by the department due to nonperformance of the terms of the
lease agreement;
(13) a performance bond when considered necessary by
the department;
(14) adequate public liability insurance for the leased
asset, the conduct of lessee's business, and lessee's indemnification
obligations to the department set forth in the lease, to be provided
by lessee at lessee's sole expense, naming the department as an additional
insured and including other endorsements as determined to be necessary
by the department, in an amount and form acceptable to the department
for the payment of any damages occurring to the highway facility or
to the public for personal injury, loss of life or property damage
which may occur; except that the director may waive this requirement
when the lease is with a county, city, state agency, or the federal
government and when the entity has assumed the specific responsibility
for payment of any related damages occurring to the highway facility
or to the public for personal injury, loss of life, or property damage;
(15) a statement that the lease may be terminated when,
in the sole opinion of the department, the asset ceases to be used
in accordance with the use provisions or is abandoned;
(16) a statement that the lease may be terminated by
the department when, in the sole opinion of the department, there
is noncompliance with the terms of the lease or the conditions are
violated and noncompliance or violation is not corrected within a
reasonable length of time determined by the department after written
notice of noncompliance or violation has been given and that in the
event the lease is terminated and the department determines it necessary
to request the removal of lessee improvements located within the asset,
the removal shall be accomplished by the lessee in a manner prescribed
by the district engineer and at no cost to the department;
(17) a statement that the lease and leased premises
shall not be transferred, assigned, or conveyed to another party without
prior written approval by the director;
(18) a requirement that the lease or any improvements
on the leased asset will be kept free of all liens and will not be
used as security for any loan; provided however, the lessee will be
allowed to mortgage or otherwise pledge or grant a security interest
in the leasehold interest to secure financing for the acquisition
of the leasehold and for the construction and operation of an improvement
permitted under the lease, subject to the terms and conditions contained
in the lease;
(19) a statement that the lessee assumes all risks
of losses resulting from the lease;
(20) a description of nondiscrimination requirements;
and
(21) any other provisions deemed necessary or desirable
by the director.
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