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AC 150/5300-4B 6/24/75 terms which guarantee an exclusive monopoly. If the airport is owned by a public agency, it should realize that any exclusive right to conduct an "aeronautical activity" will make the public agency ineligible for various forms of potential Federal assistance listed below. Federal law prohibits the grant of an exclusive right to conduct an aeronautical activity at any airport on which Federal funds have been expended. However, there are alternate legal means of giving adequate protection to a commercial aero- nautical enterprise at a public airport. Advisory Circular 150/5190-1, Minimum Standards for Commercial Aeronautical Activities on Public Airports, describes in detail how an airport owner may, and should, enforce standards of quality and levels of service, including capital equipment. Such standards are very effective in excluding marginal or irresponsible competitive operations,and there should be no compelling reason to lease airport facilities on an exclusive basis. The legal prohibition against airport monopolies does not apply to nonaeronautical activities such as restaurants, taxicabs, limousines, etc. d. In negotiating a lease of airport premises,it would seem desirable to keep in mind the nature of the rights and privileges to be conferred for the rentals or other consideration to be paid. Usually an aeronautical enterprise seeks: Page 82 (1) The lease of specified premises for as long a term as it can hope to get. (2) The right to conduct at those premises a wide range of activi- ties with as little restriction thereon as possible. (3) The rights, for itself and its customers, to use in common with others the runways, taxiways, and other public facilities of the airport. A good lease will reflect thoughtful consideration of each of these objectives. For example: (1) The lease of land or specific premises will be for a term long enough to amortize the investment to which the tenant will be committed. It will be for a firm rental rate. It will clearly spell out the respective housekeeping and insurance responsibilities of each party. If renewal options are con- templated there may be provision for the airport owner to ter- minate the lease upon reimbursing the tenant for the unamor- tized value of installed improvements. Above all,it will be consistent with the master plan for phased airport development and land use. Chap 13 Par 70