§ 42-3-112 — Operation and use privileges

(a) Operation by Authority. (1) In connection with the operation of an airport or air navigation facility owned, leased or controlled by an authority, the authority may, except as may be limited by the terms and conditions of any grant, loan or agreement, enter into contracts, leases, agreements, grants or other arrangements for terms not to exceed fifty (50) years with any person or persons; provided, that the public is not deprived of its rightful use of the airport or air navigation facility: (A) Granting the privilege of using or improving the airport or air navigation facility, including buildings or structures relating to the airport or air navigation facility, or real property acquired or set aside for such purposes, or any portion or facility of the airport or air navigation facility or space in the airport or air navigation facility for commercial purposes, establishing the charges, rentals or fees at a fixed or variable rate binding upon the parties for the full terms such contracts, leases, agreements, grants or other arrangements, which contracts, leases, agreements, grants or other arrangements may provide for the resolution of disputes arising thereunder or for the fixing of variable terms therein through arbitration or similar procedure; (B) Conferring the privilege of supplying goods, commodities, things, services or facilities at the airport or air navigation facility; (C) Making available services to be furnished by the authority or its agents at the airport or air navigation facility; and (D) Determining the charges, rentals or fees for the use of any properties under its control, and the charges for any services or accommodations, and the terms and conditions under which the properties may be used, except that any charges, rentals and fees as may be fixed or determined by any contract, lease, agreement, grant or other arrangement of privileges, uses, services, accommodations or concessions to which the authority is a party or is the grantor, shall, if so expressly provided therein, be binding upon all parties thereto for the full terms prescribed therein, unless the same is sooner modified or terminated by mutual consent of the parties. (2) In each case, the authority may establish the terms and conditions and fix the charges, rentals or fees for the privileges, uses or services or use of buildings or structures that shall be reasonable and uniform for the same class of privilege or services and shall be established with due regard to the property and improvements used and the expenses of operation to the authority; provided, that in no case shall the public be deprived of its rightful, equal and uniform use of the airport, air navigation facility, or portion of such airport or facility. (b) Other Operation. Except as may be limited by the terms and conditions of any grant, loan or agreement authorized by § 42-3-114 , an authority may by contract, lease, or other arrangements, upon a consideration fixed by it, grant to any qualified person for a term not to exceed fifty (50) years, the privilege of operating, as agent of the authority or otherwise, any airport owned or controlled by the authority; provided, that no person shall be granted any authority to operate an airport other than as a public airport or to enter into any contracts, leases or other arrangements in connection with the operation of the airport that the authority might not have undertaken under subsection (a).

Legislative History

Acts 1957, ch. 376, § 11; T.C.A., § 42-612.